UK small businesses are investing more in software to drive growth, yet a growing administrative burden is costing them nearly an hour each working day, according to a new report from Monzo Business.

What You Need to Know

Overall, more than half of UK SMBs express confidence in growth prospects over the next year. However, the same businesses report that financial admin tasks such as invoicing and expense processing consume 53 minutes daily. This friction between investment and efficiency suggests that technology spending alone may not resolve operational bottlenecks.

Investment Rises Despite Headwinds

The Monzo Business Money Moves Report surveyed 1,000 UK SMBs and found software spending increased 15% over the past year. More than half (56%) of small businesses said they are confident about their growth over the next 12 months. Nearly two-thirds (62%) plan to expand their teams.

These figures signal resilience among UK SMBs, which have faced rising costs, economic uncertainty and a heavy tax burden. Almost half of respondents (46%) named rising costs as their top barrier to growth, followed by economic uncertainty (33%) and the tax burden (26%).

The Admin Bottleneck

Despite higher spending on tools, administrative work remains a significant drag. Businesses spend an average 53 minutes per day on financial admin. Nearly half (49%) said this work takes too long, and 39% believe it actively holds their business back from growth.

The impact extends beyond frustration. Some SMBs reported missing opportunities because of admin delays:

  • Tech investment: 21% of businesses delayed investing in equipment, technology or premises.
  • Market expansion: 20% missed chances to pursue new markets.
  • Hiring: 18% postponed hiring staff.

Overall, 63% of SMBs said simpler financial admin would free up time for strategic priorities like sales, customer relationships and innovation. With extra time, one in three would pursue new customers or markets, 31% would invest in equipment or technology, and 26% would hire new staff.

Why This Matters

The gap between software spending and admin efficiency reveals a critical weakness for UK SMBs. While many businesses are willing to invest in digital tools, the time saved is not yet translating into faster growth. If admin processes remain manual or fragmented, the return on software investment could erode.

This dynamic places pressure on both business owners and software providers. For SMBs, the priority should be integrating tools to reduce duplicated effort. For vendors, the opportunity lies in building solutions that directly tackle the admin bottleneck, not just augment existing workflows.

Jordan Shwide, General Manager at Monzo Business, noted that financial admin is not simply an inconvenience but a real barrier to growth. The report underscores that confidence alone is not enough; operational efficiency must keep pace with spending.

UK SMBs are showing strong intent to grow. However, without closing the productivity gap, the potential of their software investments may remain unrealized.