Why cloud adoption is key for accounting firms
Research from Xero found that cloud adopters earn higher per client at $7,852.
Accounting firms who wish to earn more should lean toward cloud adoption, according to Xero, a global business platform.
In its accounting industry report, Xero revealed that cloud adopters were twice as likely to report an increase in revenue over the previous 12-month period compared to cloud delayers (51% vs. 25%).
Of those surveyed, 44% saw a year-on-year increase, and 26% reported decreases in their revenue in the last 12 months.
Xero added that cloud adopters also gain higher earnings per client at $7,852. On the other hand, cloud delayers only earn $6,039 per client.
The study also found that accountants have substantial influence over cloud technology adoption, with seven in ten (71%) saying that clients always or almost always adopt the accounting software they recommend.
“Accountants and bookkeepers are the pillars of the small business community. They play a critical role in helping business owners run their businesses more efficiently and profitably and providing them with the strategic guidance they need to thrive,” Koren Wines, Asia managing director at Xero, said.
“It is encouraging to see the data reaffirm how cloud technology empowers practices - increasing revenues and strengthening the value and relationship they have with their clients. We are confident that accountants will continue to play an ever-growing and critical role in Singapore’s digital transformation journey,” Wines added.