More than two thirds of small and medium-sized businesses believe day-to-day administration is holding them back, according to a survey.

Some 67% of businesses looking to grow said coping with associated financial paperwork was burdensome, while 33% saw it as a real problem, according to findings for the International Association of Bookkeepers (IAB).

This is holding back at least 36% of firms who told the survey they are looking to grow and could be constraining 49% who are willing to consider expansion.

Malcolm Trotter, chief executive of IAB, which is based in Kings Hill, near West Malling, said: “Day-to-day admin can be a real challenge for micro and small businesses where it often falls to one person to both drive the business and keep paperwork and books up to date.

“This can be a real barrier to growth.

“That is backed up by our survey, which also showed that of those troubled by financial paperwork, 41% agreed that taking on a subcontractor to handle it would be helpful.”

The survey found that 67% of respondents did not believe a bookkeeping professional would give them all the support an accountant could.

Mr Trotter said: “The experience of businesses that use the services of our members is quite the opposite to that.

“Companies that solely use the services of an accountant will only have meetings with them once in a while. Bookkeepers, however, can be far more hands on.”

The survey was conducted for the IAB by the Centre for Micro Business, which is based in Ashford and Broadstairs.

Director Roger House said: “For a business to grow it must have certain parameters covered and in place.

“Aside from the marketing elements of business, it must have a robust grip on its cash flow, an understanding of its profit and loss accounts and ready access to them and competent personnel handling the administrative duties.”

The survey also found 17% of respondents were unsure of their business’ exact financial position.

Mr Trotter added: “Those businesses would have an exact understanding of their financial position and be in a much better position to grow simply by employing a bookkeeper and receiving monthly reports.

“Bookkeepers add real value to small businesses and to their sustainable growth and our survey suggests more small businesses would benefit from using one.”