// INDUSTRY INSIGHT //
UNLOCKING A NEW ERA OF FINANCE FOR SMALL BUSINESSES
For small businesses, finance may become a lever for growth, rather than another tick-box exercise. In the UK, the government has introduced a new initiative called Making Tax Digital for Income Tax. Isabelle Duarte, Chief Marketing Officer at Soldo, explains how SMEs can use this moment to rethink finance altogether.
mall businesses today face a
S real paradox. On one hand, the UK government continues to show its commitment to SMEs, introducing digital-first initiatives like Making Tax Digital for Income Tax( MTD for IT) to improve productivity. On the other, the rapid pace of change and ongoing economic uncertainty can leave small business owners feeling as though they’ re constantly chasing their tail.
Part of the challenge is clear: large companies have entire teams dedicated to finance and, usually, the cash to access the latest technology.
Smaller businesses, meanwhile, are juggling multiple priorities with limited time and resources. Finance can easily become just another task on an endless to-do list, when in fact it should be a lever for growth.
Yet there’ s a significant opportunity right in front of them. If SMEs shift their view and treat these changes not as another compliance headache but as a catalyst to modernise finance systems, they can level the playing field with larger competitors and drive genuine, sustainable growth.
The benefits extend beyond individual businesses too. According to the government’ s small business strategy, fully embracing digital tools could add a remarkable £ 232 billion to the UK economy, with SMEs increasing productivity by up to 25 % when technologies are combined.
Compliance doesn’ t just have to be another barrier
Small business owners wear a lot of hats, from managing director, salesperson and finance manager to marketer and engineer. Even just one of those
// roles comes with enough admin to keep someone busy full time. So, when a new regulation like MTD for IT comes along, it can feel daunting and like yet another layer of red tape.
But it doesn’ t have to be. In fact, this could be the moment to make things easier. Technology can turn compliance from a tickbox exercise into a chance to run things more efficiently, with less manual admin and better visibility across the business. Rising costs like higher employee national insurance contributions mean the pressure on SMEs to stay financially nimble is stronger than ever.
So, automating tracking and setting clear budget limits aren’ t just nice-to-haves, they’ re vital tools to help stay in control when the economic picture gets tougher.
Rather than scrambling to meet deadlines, SMEs can use this moment to rethink finance altogether, shifting it from something reactive and time-consuming into a driver of growth.
FINANCE CAN EASILY BECOME JUST ANOTHER TASK ON AN ENDLESS TO- DO LIST, WHEN IN FACT IT SHOULD BE A LEVER FOR GROWTH.
Intelligent SME. tech
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