Growing SME businesses

 In Small Businesses & Startups

A recent report by technology vendor Citrix has confirmed that the current optimism surrounding the UK economy is not misplaced. One-third of smaller businesses (1,675,000) surveyed said that they had increased in headcount since 2013; 8% claimed growth of 50% or more.

So what are these growing SME businesses doing that others are not?

Technology boosting SME growth

One of the key findings made by Citrix was that the most successful growing SME businesses – those that expanded by 50% or more in the past two years – were also most likely to have spent “much more” on technology during 2013 and 2014 than in previous years. Spending on new IT systems that help increase automation and efficiency, such as Cloud-based accounting software Xero, clearly offers a significant competitive advantage.

Andrew Millard, senior director of international marketing at Citrix commented: “SMEs are a critical engine of growth for the UK economy and … technology is playing an important role in overcoming some of the traditional barriers to growth. [SMEs] are using technology to reinvent not only the way they work but the markets that they operate in.”

Managing increase in employees

But with growth comes a whole new set of headaches for business owners. Increased head count brings with it an exponential increase in admin. As well as managing contracts of employment, you will need to get to grips with payroll, and employer and employee National Insurance contributions.

Fortunately an accountant can help. Using their knowledge and experience of corporate tax legislation, they will be able to help your business plan properly for growth by defining realistic budgets based on accurate forecasts drawn from your accounts data – a process made even simpler when using Cloud accounting software.

If your business wants to join these growing SME high performers leading the UK’s economic recovery, you can talk to our specialist team at 3 Wise Bears, dedicated to handling small business accounts, at every stage of your company’s growth from forming a limited company to expanding and managing your increasing payroll.

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