When it comes to the future of the accountancy industry, the cloud has become the buzzword on everyone’s lips. Promising unlimited storage and scalability capabilities, unparalleled security features and client access all the time, anywhere and on any device, it’s easy to see why accountants are rumoured to be flocking to the cloud in droves.
But does the reality match the hype? How many firms are already using cloud accounting software? And how many plan to do so in the near future? Here’s the lowdown on the current state of cloud accounting in the UK and beyond.
Already a firm favourite
According to a survey of 3,000 accountants and accountancy firms across the globe, over two-thirds (67%) of respondents already prefer the cloud to traditional forms of keeping financial records. Just over half (53%) stated that they had integrated the cloud into multiple different aspects of their business, such as client communication and project management. It’s telling that the big four accounting firms (Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers) pushed for a move to the cloud years ago.
As far as businesses which exclusively use the cloud go, the percentages are smaller – but very promising. In the UK, 18% of firms have over 98% of their clients in the cloud, while worldwide, almost a third (31%) have more than 80% of their clientele online.
The future’s bright
The arguments for a migration to the cloud outlined above are compelling enough on their own and they’re backed up by the stats, to boot. According to Xero, companies which have all of their clients in the cloud attract new ones at five times the rate of those who don’t. They also experience an average year-on-year growth of 15%, signalling that the cloud is not just efficient and appealing to customers, but profitable as well.
Meanwhile, it’s predicted that 78% of small businesses will rely solely on cloud accounting software by 2020, and the market share of cloud accounting is expected to jump from £2.07 billion in 2017 to a whopping £3.7 billion by 2023. As such, it’s time to hop on the cloud accounting bandwagon – or risk missing the boat altogether.
Cloud services for accountants
Green Cloud Hosting offers specialist hosted desktop services for accountants. From Sage and Iris to Docusoft and QB, we can host a wide range of popular cloud accounting software, giving you more flexibility and security with the applications you already use. To find out more, give our team a call on 0161 979 0691 or email firstname.lastname@example.org.