According to Verified Market Reports, the global cloud accounting software market is forecasted to grow at a significant rate, growing at 8.5% during the forecast period of 2019-2025.
While the forecast was made in 2019, the market, global economy and world has seen systemic shift in 2020, due to COVID-19, that is likely to impact, and increase, growth even more significantly across Singapore than expected.
What is cloud accounting software and why is it seeing an increase in growth?
Cloud-based solutions, and more specifically cloud accounting software, has been around for the last decade, and is seeing significant strides in growth due to a variety of factors; most notably a shift and reprioritisation of resources from hardware to software and then cloud. All in an effort to streamline, enhance and improve efficiency across various business units.
It is no surprise as general business operations move towards cloud, that accounting and accounting software have quickly followed suit due to the need for international collaboration, business growth, cost reduction and improved efficiencies. Cloud accounting software allows businesses to run, access and operate the entire accounting suite, across any device and from any location in the world.
Cloud accounting software solutions allow businesses to streamline their processes, enhance visibility, reduce human error and increase productivity through various integrations with key vendors.
While the digital shift and trends are predominantly looked at with a focus on large enterprise, it is small businesses that have the agility, flexibility and ease to adopt and introduce cloud software, and the benefits from the start.
The benefits of running a business in the cloud
It is now widely accepted that cloud accounting allows for a significant improvement as opposed to traditional accounting measures. Key factors driving growth are digital transformation efforts across, the ability to have a distributed workforce, and enhancing overall small business productivity.
The benefits of working the cloud include the ability to seamlessly run your business in the cloud. Cloud accounting software allows small businesses to continuously ensure that they are compliant and up to date on latest additions and enhancements. Always having access to the latest software, which means features and offerings.
Small business owners, and their accountants, can access the latest data, from sales, invoices, and more, across all devices and pick up from where they left off. It also allows for collaboration, sharing and reporting, from any device.
Security and keeping track of records and ensuring data is up to date is another key benefit of working with cloud accounting software. While privacy may be a concern, all data is stored on various cloud servers with the strictest measures and regulations to protect it.
While all this is critical, perhaps the most important is the ability to make key business decisions, using real-time data, at any time. Data from transactions, bank balances and statements allow for deeper insight, report and an overall more accurate business view.
The impact of COVID-19 on cloud trends
The impact of COVID-19 has been no less than a systematic shift for the global economy and small businesses as whole. It has put in motion and allowed for radical digital transform that was touted as trends for the next decade and beyond – all in a period of under 6 months.
While once on the roadmap, cloud strategy has become a core focus for business, most notably to innovate and reduce various business risks, that are even more highlighted during the pandemic. In Asia, a recent BCG survey has shown that seventy-one percent of respondents across the region cited risk reduction and innovation as primary drivers for cloud adoption.
Remote work is another sweeping trend across the world in light of the pandemic. BCG has estimated close to 300 million office workers across the world were working from home by mid-March and is only set to increase.
There is no doubt that cloud adoption has seen an increase across the world due to COVID-19 and has allowed for opportunities for business shifts and pivots.
Singapore’s shift to cloud
Asia and Singapore, most notably, have always had a strong cloud focus, with COVID-19 highlighting the need for it. Various sectors including banking and financial, healthcare and manufacturing sectors are all seeing a surge in demand.
Various executives across Indonesia, Malaysia, the Philippines, Singapore, Thailand and more, reported that cloud could assist with innovation and business risk, with a focus on value and output.
Overall predictions for the cloud accounting software market
While the global cloud accounting software market is forecasted to grow at a significant rate, growing at 8.5% during the forecast period of 2019-2025, COVID-19 has seen an even more rapid pace of adoption across cloud and other services.
As more and more businesses take steps to innovate and pivot to digital, across business functions, the right cloud accounting software is critical, now more than ever.
Overall, cloud adoption and the business growth it enables will be critical for growth for a global, post-COVID-19 recovery.