Only one in five SMEs use accounting software

Only one-fifth of SMEs use software specifically designed for accounts management, according to an online survey conducted by Kashflow.

The research showed that almost half of all micro-businesses manage their financial accounts manually using paper and pen, while others mostly use the spreadsheet computer program Excel.

The survey also found that one in three owner-managers believe they spend too much time dealing with non-core business activities like paperwork, credit control and statutory financial requirements.

Sotiris Spyrou from Kashflow said: 'Providers of accountancy software must understand that owner-managers aren't accountants or necessarily skilled users of IT. Most regard keeping financial records as something they only do to keep their accountant and the taxman happy.'

Only 5% of the organisations surveyed used accountancy software from Sage, with users of MYOB at 4% and Quickbooks at 2.5%.