While cost (66%), a skills gap (65%), and not knowing how to get started (41%) were identified as the main barriers to adopting more technology, the research suggests that there is room for further digitalisation.
“Even though Xero’s 2024 State of Small Business report again points to optimism and ambition with 87% of small businesses in South Africa reportedly positive about their outlook for 2024, a lot more still needs to be done to foster growth.
“We need all stakeholders to ask themselves how we can create enabling structures, collaborations, and technology to remove the red tape and other barriers, to enable sustainable growth,” says Colin Timmis, country manager, of Xero South Africa.
“When looking at adoption of technology it is important to understand the granular issues that businesses are trying to solve and how technology can help.
“These challenges could be around how technology could help fix their cash flow problems, secure more sales, or help manage their teams better. For us, it’s about putting systems and controls in place that help guide financial interactions,” Timmis explains.
According to Xero’s State of Small Business report, 81% of small businesses placed their accountant or bookkeeper as their most trusted business advisor. This shows the importance of the relationship between the business owner and the accountant.
Timmis believes that there is huge potential to grow the small business economy through digitalisation and that accountants and bookkeepers will be at the forefront of this revolution as they are the untapped resource of the South African economy.
Accountants support small businesses in so many ways, often acting as digital advisors to help them adopt tools that help streamline their financial operations.
This can include using cloud-based accounting software and other digital tools that provide real-time financial insights and analytics, allowing them to identify areas for improvement and make more informed business decisions.
“The role of accountants is key, but it’s also critical that we create a better environment for people to start and grow businesses - this requires more collaborations with the stakeholders that play a critical role in supporting small businesses.
“A connected, enabled environment will create the change we need; where entrepreneurship is a leading, considered pathway to economic independence,’’ adds Timmis.
As we continue to cultivate collaboration and embrace the power of technology, we embark on a journey where the success of each small business becomes intertwined with the collective prosperity of everyone – allowing small businesses not just to survive, but to thrive.
