UK small businesses are spending more on software – but also spending more time on admin Mike Moore | usagoldmines.com

• Monzo Business report finds UK SMBs are spending, despite economic headwinds
• More than half (56%) of UK SMEs are confident about growth over the next year
• Yet businesses are now losing an average 53 minutes every working day on financial admin

Despite the economic headwinds plauging the UK in recent years, new research has claimed the country’s small and medium businesses (SMBs) are still willing to splash the cash on new technology.

A report from Monzo Business found spending on software is up 15% over the past year, showing an encouraging upswing in belief across the industry.

Overall, more than half (56%) of SMEs said they were confident about their growth prospects over the next year, and nearly two-thirds (62%) reporting that they plan, or hope to grow their teams over the coming year.

Growth vs admin

Monzo Business’ Money Moves Report surveyed a thousand SMBs across the UK, finding businesses are investing in the tools they need to grow.

However challenges remain: almost half (46%) naming rising costs as one of their biggest barriers to growth over the next year, followed by economic uncertainty (33%) and the tax burden (26%).

Financial admin was also revealed as another major headache, with UK SMBs currently spend on average around 53 minutes every working day on tasks such as processing invoices and expenses.

The frustration was clear to see, as nearly half of businesses (49%) said financial admin takes too long, with 39% saying it actively holds their business back from growing. This even stretches to some missing opportunities to invest in tech, equipment or premises (21%), pursuing new markets (20%), and hiring staff (18%).

Overall, nearly two-thirds (63%) of SMBs said simpler financial admin would free up time to focus on the things that matter most to their business, such as strategy, sales and building customer relationships. With extra time, one in three (33%) would pursue new customers or markets, 31% would invest in equipment, technology or premises and 26% would hire new staff.

“Small businesses are confident about the year ahead and thinking about how they can grow,” noted Jordan Shwide, General Manager at Monzo Business.

“However, running a business still comes with far too much financial admin, and our research shows that this isn’t simply an inconvenience – it can take time away from growth.”