Small businesses desperately need help from the government 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 businesses had seen their cash fall over the past year as they struggled with rising costs.
This makes it difficult for them to buy new technology that will make their businesses run more efficiently and smoothly in the long term, Hare said.
Businesses have just £4,000 in cash savings on average, Sage found, compared to £5,000 last year.
Sage is calling on the Government to introduce a 140 per cent super deduction on software services – a financial incentive that would allow businesses to receive money for investing in IT – in the Autumn Statement later this month.
Incentive: Sage calls on Government to introduce 140 per cent super deduction on software services
He added that changing the way bills are handled is a seemingly small move that could have a huge effect on your day-to-day life. 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‘As the Autumn Statement approaches, we must not only introduce financial reforms, but also modernize outdated systems such as invoicing and VAT reporting. “Our aspirations to establish the UK as a pioneering digital economy depend heavily on these strategic choices,” Hare said.
Read Steve Hare’s full opinion piece on MailPlus.