Simple steps to smart growth in 2026
Discover practical ways to cut costs, save time, and grow sustainably with insights from Sage, Smart Energy GB, and industry experts.
Running a small business takes resilience.
Rising costs and shifting customer expectations can put pressure on every decision you make. But there’s good news. New technology and smarter finance are helping business owners turn challenges into opportunities for growth.
As John Brown, CEO of the Cornwall Chamber of Commerce, said in our recent webinar, excerpts of which are included in this article:
“This is the year small businesses can bring back certainty into their world, by using the tools and insight already at their fingertips.”
That’s what this guide is here to help you do.
Drawing on practical advice from Sage, Smart Energy GB, Allica Bank, and the Federation of Small Businesses (FSB), we’ve gathered the key ideas and actions you can use right now to cut costs, save time, and strengthen your business for 2026 and beyond.
Here’s what we discuss:
Making Tax Digital: Simplify before it’s mandatory
From April 2026, landlords and sole traders earning over £50,000 will have to follow Making Tax Digital (MTD) rules, which include keeping digital records and filing quarterly updates. Lower thresholds will follow in 2027 and 2028.
In the webinar, Erin Roesch, SME Data Insights Lead at Sage, explained that Making Tax Digital is part of a wider shift transforming how small businesses work, which is one of three big trends she sees defining 2026: digitisation, AI and carbon data.
“It’s the biggest tax shift in about twenty years… Whereas you may have been filing once a year, you’re now going to need to do a quarterly submission and a digitised tax return.
“Sage has an absolutely free solution out there for sole traders.”
Why it matters
Digital bookkeeping reduces manual errors, improves cash-flow visibility, and means you’re ready long before deadlines cause stress.
Try this
- Check if you’re affected using Sage’s Making Tax Digital guide.
- Move to MTD-ready software now so your first quarterly update is effortless.
Watch
Roesch shares her three big trends reshaping small business accounting in 2026—and how to prepare for them now.
AI in accounting: Free up hours and get paid faster
Building on the second of Roesch’s three trends, AI automation is removing repetitive admin that gets in the way of growth.
As Roesch shared, Sage Copilot is already delivering measurable results: “Sage Copilot is saving SMBs about five hours of admin a week, and it’s getting them paid seven days faster.”
Why it matters
AI can automate things like chasing invoices, categorising expenses, and surfacing insights while you stay focused on customers and growth.
“We’re not going to replace your accountant,” Roesch added. “We’re just going to help your accountant do more, faster and better.”
And it’s not just financial data getting smarter. Erin explained that automation is simplifying carbon and sustainability reporting, too—the third big trend shaping how small businesses grow.
“We know that about 20 percent of small businesses and 37 percent of medium businesses are being asked for their carbon data, and that needs to be a really simple data point for you to get.
“So through Sage Earth, we’ve launched that into all of our Sage Accounting plans, and in a single click, you can get 80 percent of your carbon footprint, and we’ve equipped all of your accountants to do that too.”
Quick wins
- Try Sage Copilot for invoice chasing or cash-flow queries.
- Use Sage Earth to calculate your carbon footprint in one click.
Smart energy management: Reduce cost through visibility
Energy remains one of the biggest, most unpredictable costs for small businesses. Without visibility, it’s nearly impossible to plan, budget, or identify waste.
Georgina Hines, Senior Policy Manager at Smart Energy GB (the national campaign for smart meter rollout) explained that smart meters and energy data are key to taking back control.
“Smart meters actually give you back time… You’re no longer having to manually input your readings. Everything goes automatically to your supplier. This allows you to get accurate bills and greater control over your energy spend.”
Watch
See how smart meters are helping small businesses take back control of their energy costs:
Hines also shared examples of how businesses are using energy data to cut waste and cost: “We speak to businesses that have used their smart meter to identify high-energy equipment. One found a hot tap causing spikes in usage, swapped it for a more efficient model, and saved on bills.”
Watch
See how small businesses are using smart meters to save time and money:
Why visibility matters
When you can see exactly where energy is going, you can identify where you can cut down on usage.
Action steps
- Request a smart meter from your energy supplier today. Small businesses can usually get a smart meter at no extra cost. Installations take around two hours, one hour for each meter.
- Access your data through your supplier’s app or portal.
- Shift high-energy tasks to off-peak times or upgrade to more efficient equipment.
- Visit Smart Energy GB’s Small Business Hub for examples and advice from other small businesses.
Finance and the Growth Guarantee Scheme: Rethinking borrowing
High interest rates and tighter margins mean finance decisions matter more than ever. Yet many small businesses still limit their options to one bank.
Conrad Ford, Chief Product & Strategy Officer at Allica Bank, encouraged small businesses to broaden their search.
“Don’t assume it’s all about the big high-street banks. And please, please don’t give up if your high-street bank says no… The Growth Guarantee Scheme makes it easier for a lender like Allica to lend to businesses like yours.”
The Growth Guarantee Scheme helps viable small businesses access finance by reducing lender risk, opening up doors to funding that can fuel efficiency and long-term growth.
Why it matters
Used wisely, borrowing can fund upgrades that save energy, improve efficiency, or unlock expansion. But Ford warned against taking on debt without a clear repayment plan.
“Don’t borrow unless you believe you can pay it back. Why would you jeopardise a perfectly good business by borrowing money you can’t afford?”
Try this
- Ask your accountant to prepare current management accounts. Lenders will expect a clear, up-to-date view of your finances.
- Research accredited lenders under the Growth Guarantee Scheme and compare rates with specialist business banks like Allica.
- Focus on investments that repay themselves. For example, energy-efficient upgrades, AI tools, or automation that cut costs over time.
- Before signing, run the numbers. If the loan doesn’t boost cash flow or resilience, it’s not the right fit.
Carbon reporting: From compliance to opportunity
37% of SMBs have already been asked to provide carbon data when bidding for work, and this number is rising fast across both public and private sectors.
This means even small suppliers are now being assessed not just on price and quality, but on their environmental impact and transparency.
Gruffudd Jones, Wales Policy Chair at the Federation of Small Businesses (FSB), said the energy price crisis showed just how important efficiency is for business resilience.
“We’ll never know when another price crisis is coming, especially in the energy market. Things like capital investments can protect small businesses from their price spikes and supply disruption, helping survival within a bigger crisis.”
Watch
See how small businesses are using energy insights to stay resilient through price spikes:
Jones said many members are using sustainability as both a resilience strategy and a competitive edge.
“What we saw when we contacted our members was that many people had turned to sustainability to increase new revenue and customer appeal. So green credentials can differentiate businesses, attract eco-conscious consumers, and support higher-margin offers.”
For many, the link between sustainability and savings is direct.
“If they are more efficient, they use less energy. That is a saving cost for your business, and I think it is that simple.”
Watch
Discover how small businesses are using sustainability to cut costs and win new work:
Why carbon reporting matters
Carbon reporting is quickly becoming a part of how customers and lenders assess your credibility. Starting early helps you prove your impact, reduce costs, and future-proof your business against new reporting requirements.
Quick wins
- Set one measurable goal. It might be reducing waste, tracking business travel, or improving energy efficiency with a smart meter.
- Use software that integrates carbon tracking into your existing accounting data (for example, Sage Earth) to make reporting simple.
- Visit the FSB Sustainability Hub for guidance, tools, and resources.
Final thoughts: Small steps, smarter growth
At Sage, we believe growth and sustainability go hand in hand. With the right data and tools, small businesses can make confident decisions, protect profits, and build resilience for 2026 and beyond.
Five key takeaways:
- Go digital early: start preparing for Making Tax Digital now.
- Work smarter with AI: save hours each week with automation.
- Track your energy with a smart meter: visibility leads to savings.
- Borrow strategically: use finance to fuel efficiency and growth.
- Measure impact: sustainability builds trust and resilience.
Pick one idea from this guide and act on it before the end of the week. Smart growth in 2026 starts with a simple action today.
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