The study, which collected data from 1,622 small businesses from around the world, revealed that while just 39 per cent of small businesses globally are looking to move to cloud-based operations in the next year, in Australia 46 per cent of small businesses are saying they will.
The study also found that 14 per cent of Australian small businesses are already managing their accounts using cloud software, compared to just 11 per cent globally.
When asked about what they considered the best attributes of cloud software, Australian small businesses nominated mobility as the greatest advantage (61 per cent), followed by real–time syncing (38 per cent).
Xero Australia managing director Chris Ridd said the results highlighted the increasing importance that small businesses worldwide are placing on accessibility, ease of use and scalability of their business management software.
“The adoption of cloud accounting software is happening at a remarkable rate, especially here in Australia, with three out of five small businesses set to manage their accounts in the cloud by this time next year,” Mr Ridd said.
“The number of Australian small businesses using Xero has doubled since September last year, and we’re looking forward to continuing to build our small business user base and providing them with the mobility and accessibility features they are looking for in the cloud.”
Small businesses also said limitations to cloud adoption include perceived security issues with the cloud (76 per cent), risk of technology failing (56 per cent) and the reliability of internet performance (50 per cent).
“Xero was born as a cloud product from day one and we pride ourselves on having continued availability 99.99 per cent of the time,” said Mr Ridd.
“The biggest risk to a small business using their accounting files in the cloud is their own technology or internet connection — a gardener cutting the phone line outside or a computer dying,” Mr Ridd said.
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