Small businesses see cashflow increase at record rate in 2014

Small businesses have seen healthier bank accounts in recent months, according to figures from Barclays.

03rd March 2015

As every small business knows, a steady cashflow is vital not only for growth, but for day-to-day operations. Barclays reports that UK small businesses are seeing their cashflow increase at a rapid rate. In 2014 (to October), payments into small business bank accounts increased by 8% against the previous year’s figures.

Barclays finds the figures for this index by tracking payments that enter the bank accounts of the bank’s small business customers. The index takes readings from approximately 600,000 accounts, all with a turnover of less than £500 million. Since 2000, the index has risen by 20%.

The bank also shared details of particular sectors and regions that were seeing the biggest increases in cashflow. These include the construction industry and property and accommodation businesses, showing the resurgence in the housing market. Transport, agriculture and manufacturing companies had the slowest cashflow, on average. 

Perhaps unsurprisingly, cashflow was strongest for small businesses in London. Other top performers include the South West of England, the North West of England and Yorkshire, while regions including Wales and the East of England tended to have more sluggish cashflow. 

While cashflow is only one measure of a company’s performance, it is certainly a useful one. Cashflow is often a limiting factor for small businesses, holding back growth plans and reducing the company’s resources. Small, independent retailers should pay close attention to their cashflow. Today’s retail accounting software allows you to do just that. Trader is retail and point-of-sale software built for merchants. Get in touch if you’d like to learn more. 

Tagged under: Small businesses, point-of-sale software, retail software, retail accounts software

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