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.
Small businesses today face a 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 tick-box 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.
Picking the right technology with confidence
Of course, the challenge isn’t just adopting tech. It’s choosing the right tech. Nobody wants to waste time and money on a tool that overpromises and underdelivers – especially cash-poor SMEs that have to think carefully about how every penny is spent.
That’s why making that decision has to start with identifying the business’s biggest pain points. Which tasks eat up hours every week? Which processes frustrate the team the most? What jobs could be automated so people can focus on the work that really matters?
A simple rule of thumb to follow is that if a tool doesn’t save you time or make your life easier from day one, then it might not be the right fit. At the same time, don’t just stop at one tool. While SMEs must be careful not to overcomplicate, the best set-ups are made up of multiple tools that integrate seamlessly, for example with the likes of accounting software and CRMs, so you’re not stuck duplicating work across different platforms. This kind of integration is what turns digital tools into a connected, future-ready ecosystem rather than just a jumble of standalone apps.
From survival mode to strategic growth
And this is where the real transformation happens. Once those manual pain points are gone, SMEs can stop running finance like a fire drill and start using it as a strategic asset.
Automated approvals, real-time data and pre-set budgets mean SMEs no longer have to choose between speed and financial control. They get both. And with that comes the headspace to plan ahead rather than just react.
Instead of chasing receipts or reconciling spreadsheets, business owners can focus on strategy and forecasting for growth. It’s about replacing paper chases with proactive planning and making finance a source of insight, not just oversight.
Putting finance at the heart of growth
One thing is certain: the pace of change isn’t slowing. It’s a matter of keeping up or being left behind. Economic conditions will fluctuate, customer expectations will grow and regulations will continue to evolve – there’s no escaping it.
SMEs that invest now in scalable, integrated systems won’t just keep pace, they’ll pull ahead. Digital tools provide resilience against rising costs, shifting rules and future disruptions.
This isn’t simply about hitting a new deadline. It’s about rethinking what finance can do for a small business. Get it right, and it can become a genuine engine for growth.
