Over a third of the UK’s small businesses are losing thousands of pounds each year by mistakenly paying the same bill or invoice twice, new research has revealed.
The study, conducted by the Bank of Scotland (BoS), found that 37 per cent of small firms admitted to paying suppliers or service providers double the required amount.
BoS said that one in eight firms have lost up to £1,000 a year through double payment, with one in 50 missing out on over £5,000.
Female bosses appear to be more careful with their money than their male counterparts, with 67 per cent per cent claiming to have never paid an invoice twice, compared to 57 per cent of men.
Small businesses in Wales and Birmingham were the least likely to unwittingly provide suppliers with extra money, while Scotland and Yorkshire-based firms were the least successful in eliminating multiple invoices.
The report will make worrying reading for entrepreneurs with tight margins and underlines the importance of good administration within a business.
The apparent willingness of small firms to pay invoices so readily is perhaps surprising considering the culture of late or non-payment evident in many UK businesses.
Eddie Morrison, of BoS Corporate Banking, said that the survey made worrying reading.
“The evident culture of businesses issuing multiple invoices and those being caught by double-paying is quite alarming.
“Unless all invoices are cross-referenced before payment, there is a real danger small firms will continue to lose thousands of pounds in a vicious circle,” he said.