Increasing complexity of accounting law is top concern for SMEs

Constant changes to accounting practices and taxation levels such as the recent change in VAT, is the biggest headache for SMEs, according to a survey of resellers in the market conducted by Accountz, the UK accounting software vendor.

The survey, conducted at a recent Accountz channel partner conference, also identified that many SMEs are looking for accounting solutions that address the increased complexity within their existing solutions given the budgetary pressures many are still confronted with.

The research also highlighted that the channel are facing a highly price sensitive market, driven by SMEs determined to maintain cash flow in the face of continued economic pressure.

Quentin Pain, chairman and founder of Accountz, stated: "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."

The top five pain points for finance directors as identified by the channel include:
* Increased complexity to the accounting and taxation environment

* A lack of features and functions in existing accounting software solutions enabling SMEs to adapt to changes in the legal framework

* Internal difficulty for finance directors to justify expenditure on accounting software solutions

* Continuous pressure on reducing cost throughout the business

* The need to manage growth when the time comes with existing software solutions
 
"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," added Quentin.

"According to this research the channel firmly believes that solutions that are based on delivering integrated tools and solutions, ones that address this issue of complexity and from a vendor that delivers top-class service and support will win out over and above those with a higher brand profile."

"When we've been speaking to our channel partners, one thing that kept coming to light was the issue around accounting law and software. The message from our partners and their customers is that a lot of software currently available within the market place are quite constricting, and are not geared to entrepreneurs. Through the Accountz range we aim to offer our channel partners the ability to sell a refreshing alternative, to traditional accounting software currently available. Our software is user friendly and aims to take the stresses and stains out of accounting," concluded Quentin.