19 Jan 2009
UK small businesses are less likely to cut back on IT spending during the recession than on travel costs, advertising or staff bonuses – but they would reduce IT budgets in preference to missing out on tea and biscuits, according to research.
The survey of 536 small business managers by YouGov, on behalf of electricity supplier Opus Energy, suggests that only three per cent of firms will prioritise IT as an area to cut costs during the downturn.
Top of the list of areas to rein in were travel (19 per cent of respondents), advertising (18 per cent), staff bonuses (17 per cent) and staff entertainment (nine per cent).
The least likely areas to face cuts were biscuits, at one per cent of those surveyed, and tea and coffee, which would be reduced by hardly any firms at all.
Dear Editor,
Now that the recession is properly upon us, it's crucial that businesses spend every penny of IT investment on products that deliver real business value and absolutely fit their requirements. Keeping the cash flowing will keep businesses afloat and investing in software that facilitates electronic payments and direct debits should be at the top of every business' shopping list. These will prove essential in managing supplier payments and customer collections - but only if they are secure and robust.
While this is not a time for slap-dash spending, it is also not a time to cut corners. Control over payments and collections is paramount and a Bacs approved system is essential. There is never any point in spending money on a system that doesn't work. To do this now could be fatal to business.
Electronic financial packages provide solutions that allow same-day payments, reduce transaction costs and decrease data errors. Business owners can relax, knowing that monthly payments will be automatically collected by Direct Debit (DD) on a date agreed at the outset of negotiations. From the start of contract, the business owner is in control of collecting payments, eliminating the need for endless cheque chasing.
Astonishing numbers of business owners are still entrenched in archaic processes that stall business and add to the already bleak international picture of a recession.
Yours sincerely,
Adrian Stafford-Jones
Managing Director
Albany Software
Tel: +44 (0)1420 547620 Fax: +44 (0)1420 547621
Post: Albany House Albany Software Ltd, Albany House, Omega Park, Alton, Hampshire, GU34 2QE
Web Site: http://www.albany.co.uk
Posted by: Adrian Stafford-Jones 04 Feb 2009
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