1 in 3 SMEs Are Flying Blind on Cash Flow: Why Expert Support is Your Safety Net
Are you confident you know exactly how money moves through your business?
If the answer is a hesitant "maybe," you are not alone.
Running a business is a juggling act, and recent data suggests that for many UK founders, the financial balls are being dropped, not out of negligence, but a simple lack of understanding.
New research from Novuna Business Cash Flow has revealed a startling statistic: 1 in 3 SMEs do not fully understand cash flow, despite the vast majority of them facing significant challenges with it.
Following the Government’s 2025 Autumn Budget, the economic outlook for UK businesses has become more cautious. In this climate, "winging it" with your finances is no longer an option. Here is why getting the right support from the start is critical, and how Zyla Accountants can turn your numbers into a narrative for growth.
The Reality Check: Cash Flow vs. Profit
It is a common misconception that if sales are high, the business is healthy. But profit is not cash.
Cash flow is the movement of money in and out of your business over a specific period. It is the fuel that keeps the engine running day-to-day. If you run out of fuel (cash), the car stops, regardless of the destination (profit).
The research paints a worrying picture of the UK SME landscape:
82% of respondents reported financial difficulties.
68% of sole traders specifically struggle with these issues.
Yet, one third of these business owners could not correctly define what cash flow actually is.
Why is the pressure mounting?
The most common triggers for these cash crunches are all too familiar:
Late customer payments (36%)
Seasonal shifts in sales (35%)
Unexpected changes in trading conditions (27%)
When you don't have a grip on your cash flow, you cannot predict these bumps in the road. Instead of navigating around them, many founders are forced into reactive, short-term fixes—cutting costs drastically, taking out high-interest loans, or borrowing from friends and family.
"When challenges come up repeatedly across the year, it not only puts pressure on finances but also limits a business’s ability to plan ahead and grow with confidence." — John Atkinson, Head of Commercial and Strategy at Novuna Business Cash Flow
The "Finfluencer" Trap and The Knowledge Gap
Why is there such a lack of knowledge? The truth is, many entrepreneurs are visionaries, not accountants.
Data from QuickBooks reveals that 42% of founders had no financial literacy before starting their business. This is understandable; you started your company to build a product or service you love, not to stare at spreadsheets.
However, this gap is leading many to seek advice in the wrong places. With 19% of Brits turning to "finfluencers" on social media for free advice, the risk of misinformation is high. While a 60-second TikTok might be entertaining, it is not a substitute for professional financial strategy.
This lack of professional guidance is already showing cracks in compliance. Nearly half of sole traders are unaware of Making Tax Digital (MTD), despite it becoming mandatory from April 2026.
Why Zyla is the Perfect Choice for Growth
You shouldn't have to become a CFO overnight to run your business successfully. That is where we come in.
At Zyla Accountants, we believe that financial clarity shouldn't be a luxury—it should be the standard from day one.
The research suggests that enrolling in online courses or using spreadsheets can help. And while that is true, partnering with an expert is the fast track to security. An accountant does more than just file your tax return; we act as a strategic partner who can spot risks before they become emergencies.
How Zyla Supports Your Start-Up Journey:
Cash Flow Forecasting: We move you away from "reactive" panic and toward "proactive" planning. We help you visualise your runway so seasonal shifts and late payments don't catch you off guard.
Expert Tech Stack: Forget manual spreadsheets. We utilise the best accounting software to give you real-time visibility on your numbers, ensuring you are MTD compliant well ahead of the 2026 deadline.
Growth Strategy: We don't just count the beans; we help you grow the crop. By analysing your burn rate and margins, we help you make informed decisions about hiring, investing, and expanding.
Don't Be the 1 in 3
The 2025 financial landscape might look challenging, but with the right support, it is also full of opportunity.
Don't let a lack of financial literacy hold your business back. By getting the right support from the start, you can stop worrying about survival and start focusing on success.
Are you ready to understand your cash flow and build a business that lasts?