As the end of the financial year (EOFY) draws near, it’s time to review your business strategies and investment plans. Investing in new technology before EOFY has become increasingly important for small to medium enterprises (SMEs). Why? You may ask. This article explores the five compelling reasons that make this a smart move for your business. Jump right in!
To take advantage of the federal government's Small Business Technology Investment Boost
Firstly, investing in new technology means you’re positioning your business to capitalise on the Australian Federal Government’s Small Business Technology Investment Boost. This scheme offers significant tax incentives to SMEs when they purchase new technology to improve productivity and growth.
This program shows a firm commitment by the government to support SMEs, providing a secure foundation for tech investments. More precisely, the proposed measure allows SMEs earning less than AUD$50 million annually to claim an extra 20% tax deduction. This applies to costs associated with enhancing their digital operations. The initiative will be valid for expenses between 7:30 p.m. AEDT on March 29, 2022, and June 30, 2024.
Partnering with a reputable IT procurement firm is essential to ensure a successful digital adaptation and acquisition of eligible technology. With their professional expertise, they’ll guide you in choosing the right technology, maximising the likelihood of qualifying for the government’s digital adaptation grant. Their trusted services guarantee a seamless transition, empowering your business to thrive in today’s digital era.
Another tip to securing eligibility for this grant is to keep accurate records of expenses incurred during digital transformation. This includes invoices for hardware purchases, software subscriptions, and consultancy fees. These records prove your investments in technology and are essential when applying for government grants. Good record keeping ensures transparency and validates your claim for a grant.
Lastly, adhere to the given timeline for the incurred expenses, typically outlined in the grant’s terms. These steps can optimise your chances of securing a valuable grant, propelling your digital journey.
To improve efficiency and productivity
New technology often brings improved efficiency and productivity to your business operations. By automating mundane tasks—such as scheduling appointments, managing emails, and handling repetitive data entry tasks—your team can focus on more critical areas requiring expertise and skills. Additionally, technology can streamline inventory management, invoice processing, and customer service requests.
Sales automation has also risen in popularity in recent years. In 2020, 61% of businesses that automate sales exceeded their revenue targets. On the same note, companies leveraging cutting-edge sales automation generate 16% more leads than those without automation. Thus, you have all the reasons to invest in automation technology before the EOFY.
Furthermore, new technology often means improved communication and collaboration tools. These can boost team engagement, streamline workflows, and speed up decision-making processes. Lastly, increased productivity improves service delivery, enhancing customer satisfaction and loyalty.
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To gain a competitive advantage
Keeping up with the latest technology in today’s fast-paced business environment can give you a critical competitive edge. Your customers expect you to be on par with, if not better than, your competitors regarding the services you provide. Statistics reveal that 55% of companies with no digital transformation strategy fear losing market share within a year. Be proactive in acquiring new technology to maintain your customer base.
Advanced technology allows you to meet and exceed customer expectations by offering superior services. Additionally, it helps you anticipate market trends and adapt swiftly, keeping you ahead of your competitors. Therefore, investing in new technology isn’t a luxury but a necessity for SMEs aiming to stay competitive.
To enhance security
Another compelling reason to invest in new technology is to enhance your business’s security. Cyber threats constantly evolve, and outdated systems are more susceptible to these risks. According to one study, 43% of cyberattacks target SMEs, yet a mere 14% are ready to counter them.
Updated technology provides more robust security measures and helps protect your business’s sensitive data. Furthermore, it sends a strong message to your clients about your commitment to safeguarding their information. It’s a win-win investment for both your business and your clients.
To drive innovation
Lastly, technology is a powerful driver of innovation. Whether developing a new product, improving your services, or enhancing customer experience, new technology can provide the tools necessary to innovate.
By investing in new technology, you’re creating an environment that fosters creativity and innovation. This investment can help you create unique value propositions, opening new market opportunities and driving business growth.
Investing in new technology before the EOFY can provide a multitude of benefits for your business, as outlined above.
First, when investing in new technology, understand your business’s specific needs and objectives. Then, evaluate the technology’s ability to enhance efficiency, security, and competitive edge. Lastly, ensure it fits your budget and provides a clear return on investment while considering user-friendliness and ease of integration into existing systems.
As the EOFY approaches, consider your options and make the smart choice for your business’s future.