SMBs lose £747 every month on incorrect invoicing, Dext finds

The UK’s small and medium-sized businesses (SMBs) could be losing an average of £747 every month from incorrect invoicing stemming from poor tracking of rechargeable expenses, according to new research from Dext. 

With over 5.5 million SMBs operating across the UK, the figures indicate up to a £1.1bn monthly shortfall in the economy. 

The data, which compiled survey responses from over 500 UK SMB leaders, as well as 100 accountants and bookkeepers, revealed “inadequate” client invoicing and expense management systems are leaving SMBs without access to real-time, accurate financial information. 

According to Dext, this deficiency affects businesses’ ability to meet payment deadlines, with late payments from clients due to poor expense tracking costing SMBs up to an estimated £1.9bn a month. 

With 69% of SMB leaders claiming untracked, misreported or delayed expenses results in limited visibility of their outstanding liabilities, the knock-on effect has been felt by suppliers, who are dealing with delayed payments worth up to £1.4bn. 

These inefficiencies were also found to hold severe long-term implications, with 68.6% of SMBs stating expense mismanagement had an impact on their growth initiatives with employee (32%), supplier (29%) and client (23%) relationships most impacted. 

At the start of 2025, 53% of SMB owners have listed stronger financial control as their new year’s resolution. 

In addition, Dext revealed that accountants spend on average five hours per month fixing client reporting errors relating to expenses and supplier statements.

Some 61% of accountants mentioned that SMEs are blindsided by expenses, which lead to cashflow issues. 

The findings align with the UK government’s emphasis in recent months to address late payment issues for SMBs on a broader scale, primarily through its Fair Payment Code.