New research from Xero finds the issue of late payments to small suppliers is one that spans into New Zealand, too.
On Monday, (Aug. 21) reports said New Zealand SMBs are struggling with tightened cash flow as they wait for outstanding invoices to be paid, and it’s causing residual effects on small business owners.
More than a third of New Zealand SMBs say they are concerned with cash flow, while a third also said they spend their evenings chasing down late bills and handling other business tasks. Nearly 30 percent of small business owners, however, say they would like to be spending less time at work, not more.
Seventy-one percent of small businesses told Xero that they struggle with late invoices.
According to Xero’s New Zealand Country Manager Craig Hudson, the data reflect bigger issues at the heart of the nation’s economy and SMB community.
“The most recent OECD Economic Survey of New Zealand found our productivity as a country is in decline,” Hudson said. “Though we are working more hours, it is not resulting in better productivity, so SMEs must take a good look at what they are spending their time on.
“Nearly 30 percent of small and medium business owners told us they want to spend less time at work,” the executive continued. “After looking at the results of the survey, we can see this should be a reality without compromising business revenue.”
Hudson also said that small businesses aren’t strategic about how to ensure they have enough time on their hands, with eInvoicing as one way they can save up free time.
“For example, if you’re a business owner spending your own time chasing payments, you are missing a trick – a feature, Invoice Reminders, can be set up to do this automatically,” he said, referring to one service offered by Xero’s small business accounting services.
“New Zealanders can be too relaxed about paying on time,” the executive noted, “but businesses also need to set themselves up to get paid quickly.”