A growing number of small businesses in Australia are embracing technology in order to boost efficiency, streamline costs and encourage productivity. This is prompting many business owners to ponder whether they should use cloud-based accounting to improve performance.
If you're wondering what the latest cloud-based accounting trends are, look no further, as we've compiled a list of the best research and statistics to keep you up to date.
"These are people who just get cloud; there's no need to sell the features, just the benefits."
SMEs 'demanding' cloud services
Topping our list of trends in SME cloud accounting in 2017 is the growing hunger for tax accounting solutions among small businesses.
At a recent panel discussion for Receipt Bank's inaugural Clients in the Cloud event, CEO of talent management software firm Cornerstone Group Tim Hoopman emphasised how essential the cloud is for many SMEs.
"These are people who just get cloud; there's no need to sell the features, just the benefits. They're more interested in what it's going to do in their business," he told AccountantsDaily.
Xero is Australians' favourite software
Who should use cloud-based accounting? We believe most businesses can benefit, but working out which platform is the best is a little trickier. This often comes down to personal preference, although recent research seems to suggest that Xero is Australia's preferred software provider.
Just over 43 per cent of accountancy clients chose to use Xero in a Smithink study published in the Australian Financial Review. MYOB came second with 19.4 per cent of the vote for its AccountRight Live product.
Companies opting for hybrid models
A more general cloud-based SME trend in 2017 is an increased focus on developing hybrid cloud models. This means organisations are using a combination of private and public cloud platforms and software to meet their needs.
While 67 per cent of businesses opt for a hybrid cloud set-up, 22 per cent only use public clouds and just 5 per cent have a solely private cloud approach.
Cloud accounting becomes a springboard for better services
Our final cloud-based trend for 2017 is the growing realisation among SMEs that automating day-to-day small business accounting tasks through software frees up their accountant to provide more advisory services.
According to Xero figures, 27 per cent of SMEs have asked their accountant for broader business advice in the past. Furthermore, many believe cloud-based accounting is a springboard for better visibility and interaction between SMEs and their accountant.
Would you like to know more about the latest cloud-based accounting trends for Australian SMEs? Please contact WMC Accounting today.