Small business owners are lagging behind in their adoption of cloud accounting solutions according to fresh data from MYOB.
41 per cent of accountants and bookkeepers surveyed revealed more than half of their small business clients still rely on paper documentation rather than using electronic services. The accountants reported that despite the prevalence of cloud accounting products on the market and the benefits they can bring to business owners, less than half of small businesses had adopted accounting software.
Among the main barriers to adoption is an aversion to online technologies (30 per cent). Tech averse small businesses are also missing out on the productivity increases that go hand-in-hand with the adoption of technology.
MYOB Chief Product Officer, David Weickhardt, said the federal government’s recent commitment to electronic invoicing showed small business owners need to make a change.
“These major shifts we’re seeing in the way Australia will do business require a habit change. Most of the time, those changes seem more daunting than they actually are and in truth, it’s a lot harder to keep track of paper receipts than it is to adopt technology that does it for you. The shoebox should be a thing of the past,” he said.
“It’s a common misconception that smaller businesses don’t need accounting software or business management tools, but they underestimate the disadvantage they’re putting themselves at,” Weickhardt said.
“For businesses of all sizes, having online solutions will save the business owners time, reduce error and greatly help with forecasting and budgeting. These solutions allow the business owner to get back to doing what they love, rather than spending time on paperwork or compliance.”