Don't spend money on technology is the advice for accountancy firms if they want to survive the economic downturn, according to computer support company Ulysses IT.

Ulysses, which specialises in IT support for accountants, has made its recommendation to firms citing that they should not spend money on new technology to improve their chances of surviving the credit crunch.

This is a notion supported by the ICAEW business confidence monitor which shows that confidence in the IT sector has hit a record low of minus 18.2 points.

Pete Turner, technical director for Ulysses, said: 'This is not the time to be spending capital on new computers unless they are absolutely needed as replacement equipment.

'We normally recommend clients invest in IT infrastructure in the good times, so they can reduce costs at times like these. Accountants should save their money until the economy picks up again' he added.

Turner gives out three golden rules for accountants to ride out the downturn which include; not replacing computing that work and instead improving broadband and servers; replace old phone systems with internet phones which have more flexibility; and get IT support on a pay as you go basis.

Tim Newing, IT director at EasyJet said: 'Instead of concentrating on business growth and innovation, we are now turning our heads to efficiencies and cost cutting. We are in the process of devising our budgeting for next year and IT plans have changed in line with the new business strategy.'

Further reading:

Weak economy forces firms to refocus IT budgets

SEC gets technology makeover