9 Business Resolutions For SMEs In 2026
As 2026 gets underway, UK SMEs have some reason for cautious optimism. Inflation stabilisation, falling interest rates, and potential rising investment, coupled with the government rolling out its most comprehensive small business support package in years, provide hope that some form of economic stability is returning.
But with opportunity comes change: new accounting standards, mandatory disclosures, and digital requirements all take effect from January. As such, the businesses that thrive won’t be those reacting to deadlines, but those making strategic resolutions now.
Here’s what we believe forward-thinking SMEs should prioritise in the year ahead.
1. Get Your House in Order With New Accounting Standards
The FRS 102 amendments taking effect from 1 January 2026 will fundamentally reshape how your financial statements look.
The most significant change? All leases—whether for property, equipment, or vehicles—must now appear on your balance sheet as a ‘right of use asset’ with a corresponding liability. Gone are the days of simple operating lease rental charges hitting your P&L.
Instead, you’ll recognise depreciation and interest expenses, which will dramatically inflate your EBITDA. While a higher EBITDA might sound appealing, banks and investors familiar with the old treatment will need context when reviewing your performance.
As such, now is the time to speak with your accountant about how these changes will affect your management reporting, not just your statutory accounts. The transition isn’t optional, so prepare your systems and stakeholders well before your first affected period.
2. Tackle Late Payments Head-On
Late payments remain one of the most damaging issues facing UK SMEs, costing the economy £11 billion annually and forcing 38 businesses to close their doors every single day.
However, change is coming. The government has committed to introducing the most significant late payment legislation in over 25 years, creating the strongest legal framework on the issue in the G7.
Whilst the new rules will help, waiting for legislation to solve your cash flow problems isn’t a viable strategy. Make 2026 the year you take control: implement robust credit control processes, review your payment terms, and don’t be afraid to chase overdue invoices aggressively.
Consider joining the Fair Payment Code to demonstrate your commitment to prompt payment practices. Additionally, conduct an audit of your current payment cycles—both what you’re owed and what you owe—and identify bottlenecks.
Remember: Cash flow management can make or break an SME—make it a board-level priority.
3. Embrace Digital and AI Adoption
By 2026, digital-first isn’t innovative, but expected. Fortunately, AI tools, once reserved for large corporations, are now accessible to micro-businesses.
The government recognises this shift, launching digital adoption pilots and expanding the Made Smarter programme with specialist funding and advice. Still, many SMEs remain stuck at a basic level of digitisation.
Considering this, resolve to move beyond simply having a website to implementing AI-powered solutions that drive genuine efficiency. Identify one area and commit to transforming it: bookkeeping automation, predictive marketing analytics, or customer service chatbots.
In the end, businesses built on lean, AI-driven operations achieve higher margins with fewer resources. It’s a crucial advantage in competitive markets.
4. Prioritise Sustainability and Green Practices
Sustainability has shifted from nice-to-have to a business priority. With the UK’s commitment to net zero by 2050, government grants and tax breaks are flowing towards green startups, whilst more than 40% of consumers actively choose sustainable products.
Additionally, the extended producer responsibility regulations, which roll out in 2026, will affect how businesses handle packaging and waste.
The government is also offering targeted information and advice to help firms decarbonise, alongside expanded training in retrofit and energy efficiency.
As such, audit your environmental impact now and build sustainability into your core business model. Companies with credible green credentials don’t just appeal to eco-conscious consumers; they also win more contracts and attract investors.
5. Unlock New Financing Opportunities
Access to capital has historically been a major hurdle for smaller firms, but 2026 brings encouraging developments. The government is expanding Start-Up Loans to offer 69,000 new businesses access to finance and mentoring.
On top of that, the British Business Bank’s Growth Guarantee Scheme, which is designed specifically for SMEs looking to invest and grow, now offers long-term commitments.
Therefore, explore financing options other than traditional bank loans. Research whether the Seed Enterprise Investment Scheme or the Enterprise Investment Scheme can attract investors to your business.
Alternatively, you can consider crowdfunding platforms, such as Crowdcube and Seedrs, for capital raising.
6. Invest in Skills and Leadership Development
Listen: Your business is only as strong as your people, and 2026 offers unprecedented support for skills development.
The government is committing £1.2 billion of additional investment per year by 2028-29, with the newly launched Skills England and reformed Growth and Skills Levy making apprenticeships more accessible to smaller firms.
There are also industry-led initiatives, such as the Business Mentoring Council, that provide leadership training and networks for business owners who often operate in isolation.
We’ve seen, in practice, many SMEs focus so intensely on day-to-day operations that strategic development falls by the wayside. Change this. Identify skill gaps within your team and access apprenticeship schemes or T-Levels that address them.
Equally important, invest in your own leadership development. The government is backing leadership training programmes specifically designed for SME owners—take advantage of them.
7. Position Your Business to Win Government Contracts
Public sector procurement has historically favoured larger suppliers, but luckily, that’s changing.
SMEs are now a national priority in the government’s new procurement policy system. They’ve dedicated support through a new SME Procurement Education programme and a Defence SME Support Centre.
Their reformed public procurement regime is designed to make it genuinely easier for smaller businesses to compete for and win government contracts. Unfortunately, many SMEs remain unaware of these opportunities or wrongly assume the process is complex.
Consequently, position your business for public sector work in 2026. Register on government procurement platforms, and consider whether your products/services align with public sector needs.
After all, government contracts offer stable, long-term revenue, which is exactly what any growing SME needs.
8. Reduce Regulatory Burden
The government has pledged to cut regulatory administrative costs by 25%, potentially saving businesses significant time and money.
Meanwhile, HMRC’s Transformation Roadmap promises AI-powered technology to help SMEs navigate tax affairs more easily. That said, compliance requirements, such as Making Tax Digital, continue to expand in 2026.
For instance, they now require digital records and submissions for VAT, income tax, and corporation tax. Rather than viewing this as an additional burden, streamline your compliance processes.
You can invest in cloud-based software, for starters, that automatically updates statutory registers and filings. The upfront cost pays dividends in reduced admin hours and fewer costly errors.
9. Prepare for Public Financial Transparency
Here’s a deadline many SMEs haven’t yet registered: From the 1st of April, 2027, all small companies must file complete P&L accounts at Companies House.
What does this mean? Your financial performance will become public information. It’s a significant shift for businesses currently filing abbreviated accounts.
Plus, the new FRS 102 requirements mean fuller disclosure of related party transactions, including all dealings with directors, shareholders, and their families.
This level of transparency doesn’t have to be threatening. Prepare yourself by reviewing these structures with your accountant. Accordingly, consider what competitors and customers might learn from your filed accounts.
The Takeaway: What to Expect as an SME in 2026
The confluence of economic recovery, supportive government policies, and accessible technology makes 2026 a pivotal year for UK SMEs. They can implement AI tools, pivot towards sustainability, and even access tailored government support.
Ultimately, the difference between thriving and surviving businesses in the upcoming year won’t be determined by size or resources. Strategic foresight is the divide here.
So, don’t wait until new accounting standards become mandatory or financial transparency requirements catch you unprepared. The businesses that treat 2026 as an opportunity rather than an obligation will emerge stronger, leaner, and better positioned for long-term growth.
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