A recent, very revealing questionnaire reveals that 78 percent of more than 1300 small business owners are making major lifestyle sacrifices in order to complete basic administrative requirements affiliated with their businesses.
In the questionnaire, administered by accounting software provider Reckon, 52 percent said they sacrificed sleep in order to meet reporting requirements. Forty-one percent of trades-based small business leaders admitted that the pressures related to administrative duties render them incapable of performing at top levels—doing what they do best in their chosen fields.
Even more seriously, small business tradespeople credit administrative tasks as costing them 525 hours in lost hours and more than $13,500 each year.
In addition, small business owners sleep an average of 4.5 hours each night and perform a good number of tasks before 6 a.m. And 58 percent declare that pressures associated with administrative tasks lead to errors that carry financial implications, such as under or over payments.
In spite of all this work, one in five small business owners do not know as to whether their businesses meet all compliance requirements. And nearly 50 percent blame administrative tasks for killing their dreams.
This survey comes in the face of new tax regulations, as small businesses are confronted with reporting requirements in which tax information is transmitted from payroll and accounting software automatically to the Australian Taxation Office.
Looks like more sleepless nights are on the way for Australia’s small businesspeople.