Australia’s accounting sector is ramping up its adoption of cloud software with competition fierce between smaller cloud start-ups and behemoths battling it out for cloud software market domination. This competition spells good news for Australian accounting businesses as they stand to benefit greatly from all the new cloud advancements available on the Australian market.
1. Australia’s current accounting cloud software heavy-weight is MYOB, solidly leading the pack. Tim Reed, CEO of MYOB puts the company’s success down to its focus on practice management software specifically designed for the accounting industry, with such software making up 70% of MYOB’s business.
2. Xero, a New Zealand company is mainly responsible for the accounting sectors gradual transition to cloud. Chris Ridd, Managing Director of Australian Operations believes Australian accounting businesses stand the most to gain from this heated competition.
“There’s a lot of choice and lot of competition and that’s good for the industry,” said Mr Ridd.
3. The SageOne Cloud Service was introduced into Australia earlier in May this year by Sage, the UK accounting software titan.
“We launched into Australia because we believe the market is ready for another accounting solution. We’ve given it an Aussie flavour,” explained The Australian General Manager of Sage, Lukas Taylor.
3. Intuit, the US colossus is back, having re-entered the Australian market after cutting ties with local distributer Reckon early last year. Cloud is still in its infancy in Australia according to Nicolette Maury Managing Director of Intuit’s Australian operations, she agrees with Lukas Taylor when it comes to Australia’s market potential for a cloud accounting software boom.
“One of the reasons why it’s such an interesting space for cloud accounting is the majority of Australian small businesses, despite being ahead globally in technology adoption, are still using the traditional desktop software or even just spreadsheets or pen and paper. There are lots of small businesses that don’t yet know about cloud software technologies and even those that do, don’t always understand what benefit it can provide to their business. Some see it as an alternative that does the same as their desktop software,” observed Ms Maury.
4. Saasu, a Sydney based, Australian leader of cloud software solutions believes its local focus gives it a competitive edge. “It is an advantage to have a local focus. Our compliance and our regulatory environment, you have to accommodate that. We understand payroll tax and superannuation that can be quite complex for businesses to manage”, stated CEO Justin O’Sullivan.
Experts predict a major transition to this software will take place throughout Australia’s accounting sector within 1 year, forecasting that about 50% of Australian accountants will have made the switch to cloud by around August 2016.