Small and medium businesses (SMBs) have been left bewildered by frequent changes to accounting practices and taxation levels. The most recent change is VAT rates increasing from 17.5% to 20%. It is an ongoing struggle for many smaller accountancy firms to keep up to date on such areas. This concerning revelation came from a survey which was conducted by the accounting software vendor, Accountz.
The chairman and founder of Accountz, Quentin Pain, has expressed his opinion on the situation, commenting that, “For a lot of SMEs and small business owners, the effects of the financial crisis are still being felt. It doesn’t surprise me that when it comes to any sort of investment, caution still remains and that people are being very wary regarding how their money is being spent.”
SMB’s are hoping for accounting solutions to this growing problem that will not increase their limited budgets.
Pain continued that, “For the channel this leads to one outcome – pressure on margin as a result of a highly price sensitive end user community. However this research also threw up one very important point. For many end users – 45% of the sample – brand is not the top consideration when looking for an accounting application,”
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