NextUp: SMEs fear more bureaucracy and unpredictability in 2025 and choose to take precautions through digitalization. The demand for software that automates work has increased by 50%, being the biggest digitalization advance

SMEs in Romania are preparing for 2025 marked by legislative changes and administrative challenges, fearing more bureaucracy and unpredictability from the state. With these challenges, Romanian entrepreneurs rely increasingly on digitalization and automation of business processes.

Demand for software that automates repetitive processes is up nearly 50% over last year, the biggest increase in years. This signals an increased concern for efficiency and adaptation to new economic realities, according to data from NextUp, a software company that implements tax changes such as e-Invoice, SAF-T, e-TVA, and others.

Fears of more tax changes in 2025, but also additional red tape

Entrepreneurs fear further tax changes next year compared to 2024, given the increase in the economy’s minimum wage has just been announced. For example, from January 1, 2025, small companies must submit the SAF-T file (D406) according to ANAF Order 1783/2021. Also at the beginning of 2025, sanctions will be applied for not transmitting GPS coordinates in the RO e-Transport system. But entrepreneurs are expecting much bigger tax news that will burden them.

“Entrepreneurs fear that instead of reducing the administrative burden, the state will add new layers of bureaucracy. He says he’s digitalizing, but he’s giving us extra bureaucracy. The most recent example is the introduction of e-VAT, which, although presented as a digitalization measure, complicated the administrative processes for many companies. Nobody wants more red tape. In addition, entrepreneurs need all activities to be managed efficiently, without mistakes, and employees are not burdened with repetitive and boring work that demotivates them. That is why many SMEs have decided to prepare ahead of time for what could come in 2025 and to have more clarity and predictability in business. With the right ERP software, entrepreneurs have control over their business, can manage costs better, and know what to do to grow their business. And, of course, they comply with the legislation in force by submitting reports correctly and on time to ANAF and are protected from possible fines”, explains Roxana Epure, Managing Partner of NextUp, a software solutions provider for over 6,000 SMEs.

The biggest digitalization advance in recent years

Another important aspect that entrepreneurs realize is that any repetitive activity that is not automated has higher costs than if it is done manually, losing business opportunities due to resources consumed in non-productive activities. Along with the need to report correctly to the state and the growing fear of unpredictability in 2025, these reasons led Romanian entrepreneurs to digitalize their businesses in time to be ready for next year.

“We are witnessing the biggest digitalization advance in recent years, considering both the multiple legislative changes and the fear of high unpredictability in 2025, for which entrepreneurs feel they should prepare ahead of time. The demand for software increased by almost 50% compared to last year, being the highest in recent years. There is also a change in the mindset of entrepreneurs, namely they make more informed purchasing decisions, document more, and compare the software on the market, to choose the right option for their business. They are interested in software to solve as much bureaucracy as possible in the relationship with the state to provide relevant indicators about their business, have predictability, and make smart decisions. Last but not least, they pay attention to how adaptable the software is to the changes in their own business. Equipping the business with an ERP is far too important a decision for entrepreneurs to take on software that lags and will no longer be able to automate new operations. And then, they want software that they won’t change in 6 or 12 months, but in which there are constant updates and can be customized over time according to the needs of the business. Entrepreneurs want greater stability within the organization, not frequent changes both from their suppliers and from the state”, adds Roxana Epure, Managing Partner of NextUp.

The SMEs that opted for digitalization in 2024 are in most cases from fields such as retail, e-commerce, photovoltaic systems, production, distribution, construction, services, etc. Most wanted the software to be adapted to business needs, requesting the development of new functionalities to operate and automate specific processes.

How entrepreneurs can prepare for 2025 through digitalization

The demand for digitalization among SMEs is all the greater as more and more entrepreneurs realize that they must prepare their businesses for growth in advance and prevent economic difficulties, especially since unpredictability is starting to be constant in the Romanian business environment.

There are some essential criteria that any entrepreneur should keep in mind when preparing their business for 2025:

• Red tape reduction: A software should eliminate redundant administrative tasks and reduce the consumption of resources in this direction.
• Relevant indicators and predictability: Entrepreneurs want access to accurate data and indicators that allow them to make smart decisions based on clear information and accurate forecasts.
• Flexibility and adaptability: Business is constantly changing, and the chosen software must be flexible enough to adapt during the development of the company, without requiring frequent changes.
• Long-term decisions: In business short-term thinking is a trap, so entrepreneurs must make long-term decisions.
• Preparing for future growth: The right software must help a business grow, but also be easy to shape and customize as the business evolves, always allowing for new changes and additions of functionality.

The advantages of a fully digitalized business

It automates manual tasks prone to inevitable human error. These add up, and in the long run, they cost dearly. High-performance software takes over the cumbersome tasks and reduces errors to zero. At the same time, it provides control over customer relations and clarity in sales. With an integrated CRM, entrepreneurs have a complete picture of every moment of the business, accurate data, and informed decisions. Digitalization through complete software gives access to the reports that matter in any business: cash flow, P&L, sales, expenses, stocks, etc. They are updated automatically, in real-time, and can be accessed with a single click.

Complete software offers an economy of resources, total control over the results, and accurate forecasts. When he gets here, any entrepreneur is ready to take his business to the next level, it is much easier for him to achieve results when everything works transparently and smoothly.

NextUp is an ERP software developer that saves entrepreneurs time with red tape, such as e-Invoice. The NextUp software is adapted to local businesses and used mainly in online retail, traditional retail, production, distribution, construction, and services, to automate repetitive activities that consume resources and optimize business processes and forecasts. NextUp has over 6,000 customers, with an average of 5 users per company.