Business spending account Soldo has revealed that the overall cost to London SMEs of employees dedicating time to finance related admin tasks is £39,890.60 per year.
Soldo asked 1,200 companies through polling firm YouGov about how much time and effort was put into day to day financial management tasks by employees.
The average London SME spends over 50 hours a week on budgeting, accounting, expense management and financial forecasting.
Soldo’s survey reveals the average London employee spends 4.24 hours per week managing a variety of financial outgoings.
In financial terms this equates to £3,324.22 per employee per year.
Carlo Gualandri, Founder and CEO of Soldo said, “Increasing a company’s productivity is key to survival in the post Brexit vote economic environment and any new technologies or systems that can enable an SME to become more streamlined should be considered. The time and money taken up by day to day management of a company’s cash flow is astonishing but not surprising. If staff were freed up to dedicate their time to the activities that made a big difference to the company, productivity levels would rocket.”