Accounting affects the financial stability of a company or an individual and improves the flow of cash. Hence, businesses and accounting individuals should always be aware of the rapidly evolving accounting world and adapt according to the cloud accounting and AI revolution.
Businesses, be it small, large, or individual accountants, can benefit by merely understanding the ongoing trends of the accounting world. It not only helps them cut cost but also improves time management and helps them be prepared for the changes that will happen in accounting in the future.
Let us look at some of the accounting statistics compiled for you to understand better the impact of accounting for your business.
1. Accounting Statistics for Small Businesses
99.7% of all the businesses are small businesses. Understanding the utilization of these small business statistics related to accounting and managing the firm accordingly can prove to be of great importance:
- According to the Small Business Report Accounting, 60% of the small business owners feel that they might not have enough knowledge about finance and accounting.
- According to Statistia, the percentage of small business owners using accounting software is 64.4%.
- According to ICAS, the percentage of small businesses placing accountants at the peak of their list for trusted advisors is only 30%.
- According to PayPie, 70% of the small business accountants view their advisory roles into becoming more strategic.
- According to Arbitrue, the percentage of small businesses who do not expect a meet with their respective accountants face-to-face is 58%.
2. Accounting Statistics Related to the Cloud
Cloud accounting is rapidly shifting the accounting process from local desktops to the cloud. It saves the companies a lot of efforts and money by allowing its users to access their accounting software from anywhere and at any time with the help of the Internet, instead of installing it on each and every computer.
The statistics below illustrate the trends and benefits of accounting in the cloud:
- According to Sage (Sage Practice of Now 2018 Report), the percentage of accountants who prefer cloud accounting is 67%.
- According to Accounting Today, 58% of large companies are already using cloud accounting.
- According to Xero, the companies that use cloud accounting exclusively saw a 15% growth in the year-over-year revenue pattern and were also able to get five times the total number of customers than the companies that don’t use cloud accounting exclusively.
- According to Forbes, the cost of labor is reduced by 50% with the help of cloud accounting.
- According to Accountancy Age, the percentage of small businesses that will solely rely on cloud accounting by 2020 is 78%.
- According to Flexi, the global market size for cloud accounting was $2.62 billion, and by the end of 2023, it is estimated to be $4.25 billion.
3. Statistics for Accounts Payable (AP)
Accounts payable may seem to be a huge pitfall for most of the businesses as it involves keeping track of numerous bills and payments.
Here are some of the relevant statistics related to accounts payable:
- According to iPayables, over the years, 39% of the AP professionals have reported that the total invoices that they work on have seen an increase of about 10%.
- According to Vanguard Systems, depending upon the size of the company, $16/invoice or more can be saved via AP automation, and it starts paying for itself within an average of 6 to 18 months.
- According to MineralTree, one hour can be saved per day by AP professionals who automate their payments and invoice capture.
4. Accounting Statistics Related to Artificial Intelligence
The integration of artificial intelligence with the accounting software offers features like the automated categorization of data and data entry.
Here is how Artificial Intelligence helps accountants increase efficiency and identify redundancy.
- According to the Journal of Accountancy, the percentage of accounting executives who believe that AI leads to competitive advantage is 80%, and 79% of them believe that it can increase the productivity of their company.
- According to Forbes, the RPA (Robotic Process Automation) has reduced the processing time for contracts and audits from a handful of months to just a few weeks.
- According to Accenture, the percentage of clients who preferred getting advice from both a human and a Robo adviser is 68%.
- According to Sage (Sage Practice of Now 2018 Report), the percentage of accountants who are ready to invest in AI is 66%, out of which 55% plan on using it in the next 3 years.
5. Statistics for Accounting Automation
With more and more accounting tasks being automated, there will be better utilization of technology and faster application of business decisions.
Here are some of the accounting automation statistics that will help all the accounts to keep up with the demands of the business and customers.
- According to ACCA, over 50% of the accounting executives expect that the development of automated and intelligent accounting systems will have a significant impact on accounting businesses over the next 30 years.
- According to a study by AICPA, the percentage of CPAs who believe that they are not entirely future-ready is 92%.
- According to Sage (Sage Practice of Now 2018 Report), the percentage of accountants who believe that the demand of clients has increased over the past five years is 83%, and out of them, 67% feel that the accounting profession has become more competitive than ever before.
- According to Arbitrue, by the year of 2020, the auditors will grow in population from 1.2 million to a vast number of 1.44 million.
- According to Accounting Today, the value of the accounting software global market will be $11.8 billion in the next 8 years.
Knowing about what is happening in the world of accounting through these statistics can have a significant impact on the growth of your accounting firm and help you prepare for the future.
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