Accounts software can help small business growth plans

News Article - Thursday, May 01, 2008

filed under: Business

Small businesses in the UK are continuing to press ahead with plans for expansion, despite the current economic downturn.

According to a new report from the Asset Based Finance Association (ABFA), small and medium-sized enterprises (SMEs) are continuing to retain a sense of optimism about the future and to plan for future growth.

The study reveals that the credit crunch in financial markets is not forcing small businesses to reign in their expansion plans for 2008, with 74 per cent planning to grow this year.

Around half of the smaller firms polled stated that they expected to increase borrowing during 2008 and SMEs are advised that they can use accounts software to manage their finances and help to fuel growth.

Two out of three respondents (67 per cent) stated they were confident they will be able to secure the required funding for their expansion plans. However, many of the small businesses questioned believed that more interest rate cuts were needed to boost the economy and more than one in three said they were concerned about late payments.

The recent annual small business survey by the British government revealed that two thirds (66 per cent) of SMEs intend to grow their enterprise over the next two or three years and many will opt for accounts software in order to enhance the way in which they manage their finances.

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