With so much uncertainty still hanging over the economic recovery it is tempting and prudent for SMEs to continue to watch their cash flow and keep a tight rein on spending.
However, there may be some instances where this could be a false economy that will inhibit a future productivity gain.
We have been seeing businesses that are still holding back on upgrading their IT systems or software.
Businesses use IT to make life easier and more efficient and while it makes no sense to try to keep pace with constant IT innovation, equally it can be counter-productive to hold on too long to the point where a system is either very slow or no longer fit for purpose.
A good example is switching to online bookkeeping. This is a case where changing to an online bookkeeping system rather than using an old-fashioned manual method or even a computer package is likely to save both time and money. Not only can the online system be shared with key people or outsourced to a bookkeeper but it can be monitored by your accountant, saving on the time and costs as well as offering scope for improving the quality of reports.
Perhaps you can suggest other examples of processes that could help SMEs to boost productivity?