New Zealand small businesses are adopting cloud accounting software faster than other countries, according to a recent study conducted by online accounting software provider Xero.
The study, which collected data from 1,622 small businesses around the world, found that 18 per cent of New Zealand small businesses were already managing their accounts using cloud software, compared with 11 per cent globally.
Of the New Zealand small businesses not using the cloud for their accounting currently, 42 per cent stated that they were either in the process of moving or looking to convert to cloud within the next 12 months, compared to 39 per cent globally.
Xero NZ Managing Director, Victoria Crone, says the results highlighted the increasing importance that small businesses worldwide are placing on mobility, 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 New Zealand, with more than half of small businesses set to manage their accounts in the cloud by this time next year,” Crone says.
“We’re really at the tipping point with this research indicating that New Zealand is leading the way and set to really take off in terms of cloud accounting adoption in the next year.”
Xero has over 400,000 customers globally, with more than 120,000 based in New Zealand.
“New Zealand small businesses surveyed have overwhelmingly told us that mobility is the greatest advantage (64%) when considering cloud computing, followed by real-time syncing (38%) and security (37%)," Crone adds.
"We’re looking forward to continuing to build our small business user base and providing them with the benefits they are looking for with the cloud."
In terms of limitations, small businesses saw the reliability of internet performance (52%) perceived security issues with the cloud (52%) and the risk of technology failing (36%) as the most significant hurdles to cloud adoption.
“We’ve found that in fact, 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,” Crone adds.