UK SMEs seek resilient finance systems amid tariff disruption

Nearly half of small and medium-sized UK businesses have identified major shortcomings in their finance and ERP systems following recent disruptions from shifting trade tariffs, according to new research.

System limitations

The study found that 48% of finance leaders in SMEs felt their current finance or ERP systems were inadequate during periods of tariff volatility. One in eight respondents said these experiences had significantly increased their awareness of the need for upgrades and improvements in technology and processes within their organisations.

This recognition has prompted many finance decision-makers to consider a range of strategies for improving future resilience. Data from the research suggests a growing emphasis on both technology adoption and operational changes.

Investment strategies

Supplier diversification and reshoring are high on the agenda, with 43% of finance leaders reporting a focus on these strategies. The same proportion indicated that they are investing in internal skills and training for their finance teams. In addition, 38% of SMEs reported increases in domestic stockpiling or warehousing capacity.

Technology-focused measures are also being pursued. Over a third (34%) of SMEs are turning towards AI and automation to support finance workflow efficiency, while 32% are implementing advanced forecasting and scenario modelling tools for greater accuracy in planning.

Execution gap

Despite these intentions, the research highlights a disconnect between planning and action. While two-thirds of respondents said they have developed contingency plans, 19% admitted to taking no action to increase working capital. Furthermore, 28% have not taken steps to lower production or inventory risk, despite acknowledging ongoing tariff-related uncertainty.

"UK SMEs are clearly ready for change, but many are still stuck in reactive mode. Tariffs have exposed the cracks: outdated systems, skills gaps and a lack of meaningful data insight are holding too many businesses back from taking decisive action," said Andrew Watkinson, Managing Director, CPiO.

Fiscal uncertainty

The upcoming Autumn Budget has added to concerns among SME finance leaders, with expectations of possible changes to tax policies, investment incentives, and public spending. Many are considering delaying or reconsidering investment decisions until the fiscal outlook becomes clearer.

"For SMEs already navigating tariff volatility, the possibility of further fiscal shifts is compounding caution and placing even greater emphasis on the need for accurate forecasting, stronger financial insight and more adaptable systems," said Watkinson.

Need for transformation

Many SMEs appear to be at a critical juncture. There is widespread recognition that modern ERP and finance systems are becoming essential for business resilience. Almost half of finance decision-makers stress the need for systems that provide robust modelling capabilities and better data visibility to support more confident and proactive leadership in periods of change.

"With the Autumn Budget on the horizon, businesses are preparing for yet another layer of uncertainty. What this research shows is that SMEs are on the cusp of real transformation. But unless investment, leadership and technology strategy move together, businesses will continue responding to tariffs rather than adapting to them. Modern ERP and finance solutions are no longer operational luxuries; they're strategic necessities for resilience," said Watkinson.