Colin Timmis | Regional Director | EMEA | Xero | mail me |
It is no secret that South African small businesses demonstrate remarkable resilience and optimism despite ongoing challenges. At the forefront of this resilience is digitisation. It is proving to be a vital catalyst for continued growth. In fact, digitisation delivers better business outcomes every day.
According to the 2025 State of Small Business Report, 83% of local small businesses grew their revenue in the past year. In addition, 90% expressed optimism for the year ahead. This serves as a testament to the impact of technology-driven transformation, which continues to push the sector forward.
One of the entrepreneurs embracing this digital shift is Cedar Coffee Roasters’ co-founder Leigh. She believes that implementing digital processes has fundamentally transformed their daily operations.
Digitisation transforms daily operations
In today’s fast-paced world, it is essential to digitise your business. Although we still rely on some physical labour, we use digital tools to track inventory, roast profiles, accounting processes and online sales. We also rely on a POS system at our Cedar Hatch inside urban boutique Jack Lemkus.
Intuitive software empowers small businesses like Cedar Coffee Roasters to automate everyday business tasks. It also allows them to access a real-time view of operations.
Digitising these processes means we can manage our cash flow and see everything on a dashboard. Scheduled bill payments ensure suppliers are paid on time. Detailed customer profiles help us track outstanding payments and expected payment times.
Tackling cash flow challenges
Despite cash flow management being one of the biggest challenges for small businesses, our research shows that many are still not fully using technology to streamline this crucial area. Leigh’s experience demonstrates the true value of digital tools and reinforces how digitisation delivers better business outcomes.
Tech is there to assist and make your life easier, especially when you start up. If you can invest in tech, it becomes easier to organise your business. It also gives you the ability to scale with less physical labour. Time is money. Tech allows you to spend more time on the work that brings in value.
The ability to run a business on the go and get paid faster is a game-changer for small business owners. Nationwide, nearly half (45%) of small businesses identified technology as one of the most valuable factors for their business in the past year. This again confirms that digitisation delivers better business value for the sector.
Small businesses are not just surviving; they are investing in their future. With 42% planning to upskill staff and 39% looking to develop skills in new technologies like AI, innovation, and continuous learning are clearly at the forefront of their strategies.
Accountants as digital allies
Technology and automation are also reshaping the role of accountants. Increasingly, they are stepping beyond compliance to act as strategic, technology-enabled business advisors. For small businesses that use accountants, 80% say their accountant is their most trusted advisor. They guide business decisions, navigate VAT and tax, and provide critical financial insights.
Recognising this shift, we are actively supporting accountants and bookkeepers. The company ensures they have the digital skills required to thrive and deliver even greater value to clients.
Accountants and bookkeepers are vital allies in a small business’s support system. As more routine tasks become automated, accountants can take on a consultative role. They help their clients navigate ongoing challenges and seize new opportunities.
South Africa’s small business community remains deeply optimistic and committed to innovation. With 42% of small businesses planning to invest in upskilling staff and 39% looking to develop new technology capabilities, the future of small businesses is digital.
