Recent research conducted by Xero has found firms that are all-in on the cloud report the highest growth.
Among the findings, we discovered that firms with a higher concentration of clients using cloud accounting software had higher levels of year-over-year (YoY) revenue growth.
It’s evidence that the capabilities within cloud accounting software like Xero, which automate manual processes and enable client and accountant collaboration on a single ledger, are proving invaluable for these connected cloud practices.
Cloud practices report the highest growth
Compared to traditional firms, cloud-based firms add five times the amount of clients. These survey results show that, with the ability to increase their revenues and service a client base that extends past their immediate area, there’s no limit to what connected cloud practices can do.
Firms with nearly 100 percent of their clients using cloud accounting software had the highest growth. Traditional firms saw a 4 percent increase in YoY revenue, whereas cloud practices reported a 15 percent increase.
It’s a surge in growth that Jay Kimelman has experienced firsthand in his role as Chief Accounting/Technology Officer of the digital CPA. Jay, who is also a Xero Ambassador, asserts that going all-in on the cloud has been the impetus, and his firm’s momentum shows no signs of slowing.
“Fully embracing the cloud accounting strategy and utilizing Xero has allowed the digital CPA to grow from a sole practitioner to a firm of 5, achieving over 30 percent revenue growth YTD over 2015,” said Jay.
“We are forecasting a 40 percent increase in revenue over the next 12 months, which is achievable due to the scalable nature of the cloud technology we currently have in place.”
Jay’s not the only one expecting growth in revenue, our survey found that 71 percent of cloud-centric firms were anticipating growth of at least 10 percent over the next year and 47 percent were expecting more than 20 percent growth during that time. This is in comparison to just 38 percent of traditional firms who are expecting revenue growth of 10 percent.
Xero is helping accountants and bookkeepers grow their practices
Xero is building on our commitment to help our accounting and bookkeeping partners thrive with our extended global Partner Program.
The expansion features a clear and flexible program that shows how our partners can grow with us, as well as an update to the Xero Advisor Directory, making it easier than ever for accountants to grow their client base.
The results are loud and clear: cloud accounting software is helping accounting practices grow. By embracing the cloud, traditional firms can do the same.