Small businesses today face a real paradox. On one hand, the government keeps reinforcing its commitment to SMEs and is rolling out digital-first policies like Making Tax Digital for Income Tax (MTD for IT) to boost productivity. On the other, the pace of change combined with economic uncertainty can leave small business owners feeling like they’re constantly playing catch-up.

Part of the challenge is obvious: big companies have whole teams dedicated to finance and (usually) the cash that enables them to have the latest tech at their fingertips. Meanwhile, smaller businesses are often juggling a dozen different priorities with limited time and resource. As a result, finance becomes just one more job on an endless to-do list, when it should be a lever for growth.

But there’s a huge opportunity hiding in plain sight. If SMEs stop seeing these changes as yet another compliance headache and instead use them as a trigger to modernise their finance systems, they can level the playing field with their larger counterparts and drive real, sustainable growth. The upside isn’t just for them either. The government’s own small business strategy suggests fully embracing digital tools could add a staggering £232 billion to the UK economy, with SMEs boosting productivity by up to 25% when they combine technologies.

Turning compliance into opportunity

Small business owners wear a lot of hats, from managing director, salesperson and finance manager to marketer and engineer. Even just one of those roles comes with enough admin to keep someone busy full-time. So, when a new regulation like MTD for IT comes along, it can feel daunting and like yet another layer of red tape.

But it doesn’t have to be. In fact, this could be the moment to make things easier. Technology can turn compliance from a tick-box exercise into a chance to run things more efficiently, with less manual admin and better visibility across the business. Rising costs like higher employee national insurance contributions mean the pressure on SMEs to stay financially nimble is stronger than ever. So, automating tracking and setting clear budget limits aren’t just nice to haves, they’re vital tools to help stay in control when the economic picture gets tougher.

Rather than scrambling to meet deadlines, SMEs can use this moment to rethink finance altogether, shifting it from something reactive and time-consuming into a driver of growth.

Making smart technology choices

Of course, the challenge isn’t just adopting tech. It’s choosing the right tech. Nobody wants to waste time and money on a tool that overpromises and underdelivers – especially cash-poor SMEs that have to think carefully about how every penny is spent.

That’s why making that decision has to start with identifying the business’s biggest pain points. Which tasks eat up hours every week? Which processes frustrate the team the most? What jobs could be automated so people can focus on the work that really matters?

A simple rule of thumb to follow is that if a tool doesn’t save you time or make your life easier from day one, then it might not be the right fit. At the same time, don’t just stop at one tool. While SMEs must be careful not to overcomplicate, the best setups are made up of multiple tools that integrate seamlessly, for example with the likes of accounting software and CRMs, so you’re not stuck duplicating work across different platforms. This kind of integration is what turns digital tools into a connected, future-ready ecosystem rather than just a jumble of standalone apps.

From firefighting to forecasting 

And this is where the real transformation happens. Once those manual pain points are gone, SMEs can stop running finance like a fire drill and start using it as a strategic asset.

Automated approvals, real-time data and pre-set budgets mean SMEs no longer have to choose between speed and financial control. They get both. And with that comes the headspace to plan ahead rather than just react.

Instead of chasing receipts or reconciling spreadsheets, business owners can focus on strategy and forecasting for growth. It’s about replacing paper chases with proactive planning and making finance a source of insight, not just oversight.

A finance function built for the future

If one thing is certain, it’s that the world isn’t slowing down. It’s a game of keeping up or getting left behind. Economic conditions will shift, customer expectations will rise and regulations will keep evolving – there’s no doubt about it.

The SMEs that invest now in scalable and integrated systems won’t just keep up, they’ll get ahead. Digital tools offer resilience against rising costs, changing rules and future shocks.

This isn’t just about meeting a new deadline. It’s about reimagining what finance can do for a small business. Get it right, and it stops being a burden and starts being a real engine for growth.

Isabelle Duarte is Chief Marketing Officer at Soldo.