cloud computing - a matter of survival for accounting

Cloud computing - a matter of survival for the accounting industry?

Cloud computing - a matter of survival for the accounting industry? A national research study commissioned by CCH April 2013


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Contents

1.0 The adoption of cloud-based solutions is low but rising rapidly

2.0 What are the key benefits of cloud-based software?

3.0 Reasons cited by accountants why they have not adopted cloud

computing

4.0 Will cloud-based software ultimately mean some SMEs replace their

accountants?

5.0 Are accountants concerned about losing work if SMEs embrace the

cloud?

6.0 How fast are accountants moving to adopt cloud-based solutions?

7.0 For accountants, what are the most important features of cloud-based

software?

8.0 Security is a key priority when considering making the transition to a

cloud-based system

9.0 Methodology


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1.0 The adoption of cloud-based solutions is low but rising rapidly

Fourteen per cent of SMEs use a Cloud-based software to manage their accounts.

SME owners / managers aged 18 to 34 are more likely to use a Cloud-based software (31%; cf. those

aged 35 to 49 12%, 50+ 6%).

More accountants (23%) use a Cloud-based software for their client work.

Accountants aged 18 to 34 are more likely to use a Cloud-based software (29%; cf. 35 to 49 21%, 50+

13%).

Adoption of cloud-based software solutions for accounting in 2013 (SMEs and accountants)


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2.0 What are the key benefits of cloud-based software?

Accountants believe the biggest benefit of using a Cloud-based system is that it can be accessed

from multiple locations (62%).

Other key benefits include that they dont need to worry about maintenance (32%) or purchasing

hardware or accounting software (32%).

Accountants aged 50+ are more likely identify that you dont need worry about purchasing hardware

or accounting software as a benefit (44%; cf. those aged 18 to 34 23%, 35 to 49 36%).

Key benefits of cloud-based software

(%)

Gain access from multiple locations

62%

I don't need to worry about maintenance or hardware system up 32%

No need to purchase hardware or accounting software 32%

Easily scalable as my clients grow / needs change 30%

It requires no updates, tax table updates or version upgrades 28%

Reduced overall costs 27%

Lower up-front investment required by my clients 25%

Access to improved reporting 21%

Better security of data 18%

Advanced / specialist features available 12%

Don't know 17%

Other 2%


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3.0 Reasons cited by accountants why they have not adopted cloud

computing

The main reason why some accountants are not using a Cloud-based system is simply because they

have a working system (37%).

Other key reasons include that they have security concerns (31%), they havent had enough time to

investigate (29%) and they are not familiar with what is available (28%).

Accountants working in large businesses (i.e. 200 or more employees) are more likely to have

security concerns (43%; cf. those in small businesses 29%, medium businesses 31%).

Accountants aged 50+ are more likely to be reluctant as they believe their clients are nervous about

Cloud systems (41%; cf. 18 to 34 18%, 35 to 49 23%).

Reasons why some accountants have not adopted cloud computing

(%)

Have a working system 37%

Security concerns 31%

Not enough time to investigate 29%

Not familiar with what is available 28%

Clients nervous about cloud-based systems 25%

Downtime 12%

Not worth the cost 12%

See no benefits 6%

Don't know 16%

Other 5%

Have a working system 37%

Security concerns 31%


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4.0 Will cloud-based software ultimately mean some SMEs replace their

accountants?

Almost two thirds (64%) of SMEs would consider replacing some of the roles that their accountant

currently performs with a Cloud-based accounting system.

This is higher amongst SME owners / managers aged 18 to 34 (86%; cf. those aged 35 to 49 67%, 50+

49%).


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5.0 Are accountants concerned about losing work if SMEs embrace the cloud?

More than half (52%) of accountants surveyed are concerned about losing work due to SMEs

replacing their services with Cloud-based services with only 3% extremely concerned.

Accountants aged 18 to 34 are more likely to be concerned about losing work (58%; cf. those aged

35 to 49 54%, 50+ 36%).


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6.0 How fast are accountants moving to adopt cloud-based solutions?

Six in 10 (60%) accountants who are not currently using a Cloud-based system consider it likely they

will adopt one in the next 2-3 years.

Accountants aged 18 to 34 are more likely to consider adopting a Cloud-based system in the next 2-3

years (66%; cf. those aged 35 to 49 58%, 50+ 53%).

Additionally, half (51%) of accountants who are currently using a Cloud-based system believe that

they are likely to increase their use of Cloud-based accounting software in the next 2-3 years.

Interestingly, more than half (53%) of SME owners / managers would consider looking for a new

accountant if their current accountant was reluctant to investigate and embrace a Cloud-based

accounting software.

This is higher amongst SME owners / managers aged 18 to 34 (72%; cf. those aged 35 to 49 56%, 50+

38%).

Those operating medium businesses (20 to 199 employees) are more likely to consider looking for a

new accountant if their current accountant was reluctant (76%; cf. those operating a small (less than

20 employees) business 46%).


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7.0 For accountants, what are the most important features of cloud-based

software?

For 7 in 10 (70%) accountants, security is an important feature when making a decision on a

platform for a cloud-based software with more than a third (34%) saying it is the most important

feature.

Accountants aged 50+ are more likely to consider security an important feature (79%; cf. those aged

18 to 34 61%, 35 to 49 76%).

Accountants aged 18 to 34 are more likely to consider flexibility an important feature (52%; cf. those

aged 35 to 49 47%, 50+ 41%).

Only 1 in 10 (10%) accountants consider price to be the most important feature.

What are the important features of cloud-based software (%)

Security 70%

Functionality 65%

Price 57%

Flexibility 48%

Quality of content 31%

Frequency of updates 20%

Scalability 19%

None / don't know 7%


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8.0 Security is a key priority when considering making the transition to a

cloud-based system

For SME owners / managers, the most important security factor when considering making the

transition to Cloud computing is the high level of online security of their data (including firewalls,

anti-virus protection, spam filters, etc.) (64%).

This is also the most important security factor for accountants (69%).

Most important security factors considered when making the transition to cloud computing


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9.0 Methodology

The small and medium enterprise (SME) study was conducted among 1,018 business owners or

business decision makers of organisations with 200 employees or less.

The accountant study was conducted among 212 accountants or principals of accounting firms

servicing small and medium enterprises.

Fieldwork commenced on Friday, 8 March and was completed on Thursday, 21 March, 2013. Both

studies were conducted online amongst members of a permission-based panel.

After interviewing, SME data was weighted to the latest business count estimates sourced from the

Australian Bureau of Statistics.

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