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While the slow cloud take-up in the accounting space is often attributed to the accounting mindset, research has found other significant barriers are hampering adoption rates.
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Major barriers plaguing cloud take-up
28 October 2016
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Research from Smithink found almost 40 per cent of accountants cite that concerns about cloud computing, such as security, have a moderate to significant impact on purchasing decisions.
Smithink founder David Smith believes accountants are generally keen to embrace the cloud in their practices, but are let down by unavoidable barriers.
For example, he finds a significant number of accounting firms in Australia are using at least one cloud-based product, but they are restricted from becoming more cloud-based because many practice management systems are yet to offer a cloud-based service.
“How many firms are 100 per cent in the cloud? It’s miniscule. Part of the reason it is miniscule is many of the practice management suppliers are not cloud-based yet. A lot of them are still desktop-based, and that is a real key driver here,” Mr Smith told AccountantsDaily.
Smithink’s research also found that significant infrastructure barriers, particularly in regional Australia, are preventing practices from adopting cloud-based services.
“In the end, though, this issue will be solved and we will have great internet in Australia. It’s a temporary barrier in the interim,” Mr Smith said.
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Poor support for accountants by cloud-based suppliers is another notable issue for practices that are looking to get a cloud service up and running, as is the lack of integration facilities offered by cloud-based services, Smithink found.
“Overall, the cloud is inevitable. The proposition associated with the cloud is too strong to ignore, and all of the concerns that people have will get solved,” Mr Smith said.
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