Small businesses desperately need Government help to invest in IT and technology, according to the boss of FTSE 100 software giant Sage.
Chief executive Steve Hare said research by the company found that small firms had seen their cash slump over the past year as they battled rising costs.
This makes it more difficult for them to buy new technology that will make their businesses run more efficiently and smoothly in the long run, Hare said.
Companies have just £4,000 in cash savings on average, Sage found, compared with £5,000 last year.
Sage is calling for the Government to introduce a 140 per cent super-deduction on software services – an economic incentive that would see companies receive money back for investing in IT – in the Autumn Statement later this month.
Incentive: Sage is calling for the Government to introduce a 140 per cent super-deduction on software services
He added that changing the way that invoices are handled is a seemingly small move that could have a huge day-to-day effect. It costs around £15 just to process a single invoice, Hare said. Most advanced countries have adopted online ‘e-invoicing’, but the UK has not.
‘As the Autumn Statement approaches, we need to not only introduce financial reforms, but also revamp outmoded systems, like VAT invoicing and reporting. Our aspirations to establish the UK as a trailblazing digital economy rely heavily on these strategic choices,’ Hare said.
Read Steve Hare’s full op-ed on MailPlus.
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