Late Payments Cripple Small Accountancy Firms, GoCardless Survey Reveals

LONDON, UK – 12 June, 2025 – Late payments are imposing a significant financial and operational burden on small accountancy firms across the UK, according to research released today by bank payment company GoCardless. The study uncovers the pervasive and costly nature of the problem, with over half (56%) of accountancy practices resigning themselves to late payments as an "inevitable cost of doing business."

The survey, which polled 100 leaders from accountancy and financial services businesses -- predominantly one-person teams or micro-firms -- highlights the severe impact of late payments on cash flow. Four in 10 (40%) respondents reported spending over an hour each week chasing overdue invoices, diverting crucial time and energy away from client work and business growth.

The issue is so critical that more than half (57%) of small practices admit to occasionally forfeiting payments entirely rather than go through the hassle of chasing. One in ten (13%) have resorted to debt collection services, indicating that even the smallest firms have started to rely on formal recovery methods.

Despite the mounting pressure, the adoption of proactive payment strategies remains inconsistent. While 19% now enforce stricter payment terms and 24% charge late fees, only a quarter (25%) have automated their payment processes. A small percentage (6%) have introduced early payment discounts, an incentive that, while beneficial for cash flow, often impacts net income.

Hiroki Takeuchi, co-founder and CEO of GoCardless, commented:

"Small accountancy practices are the backbone of the small business economy, often acting as frontline advisors. It's deeply concerning to see how late payments are stifling their growth and forcing them to waste valuable time and resources. In addition, our customers tell us that late payments not only take a toll on their business, they also bring a lot of personal stress.

“Late payments are a complex issue, and there are many underlying causes. But we strongly believe that technology and modern payment methods in particular can help businesses turn them from ‘inevitable’ costs to something they can control.”

Case Study: TotalBooks Finds Freedom from Late Payments

For Buhir Rafiq, who runs TotalBooks in Cardiff, getting paid on time isn't just about keeping his business healthy – it's about getting his evenings and weekends back. For 16 years, his accounting firm has been busy, but before he sorted out his payment system, following up on invoices was a massive burden.

"Chasing clients for money months after I’d done the work, knocking on the door, repeatedly ringing them up — it was all a huge headache," Buhir recalls. "This caused major cashflow issues and, honestly, it was hard not to take all that mental trauma home with me.”

He turned things around by integrating GoCardless’ direct bank payment solution into his accounting software and getting clients to switch to automated payments. "It takes seconds to sign clients up online, and with a couple of clicks I can either schedule automated monthly billing, take an up front payment, or bill them halfway through a project,” he explains. "I know that money will come in, with little intervention from me."

This change transformed his practice, with Buhir estimating that he saved 200 hours a year on raising invoices and chasing payments. This positive experience was so impactful that when Buhir launched his new spin-off business, RX Virtual Finance, building the same system was “a no-brainer”.

Reacting to the survey findings, Buhir said: “More than half of an industry that is worth billions say that late payments are just the norm. If even one percent of those respondents cottoned on that automated payments can end this issue in an instant, that would translate into millions more for the accountancy sector.”

He offered another tip for practices struggling with late payments: making processes clear from the outset. At his firm, customers pay upfront and sign up for Direct Debit as part of their onboarding. Not only does it help him, it leads to satisfied customers too. “My clients are busy. So they’re happy that they already know their fee at the start of the year. They know it’s split over 12 months, and they know when each payment will be taken,” said Buhir. “They don’t have to chase me and I don’t have to chase them.”

Notes to Eds.

All figures in this release refer to an online survey conducted by the FSB. The survey ran from October to December 2024 and had input from 2,298 responders, including 100 in the accountancy sector.

For more information contact: press@gocardless.com