Welcome to Zenbooks’ groundbreaking research hub. Dive into our comprehensive study, conducted in partnership with Abacus Data, revealing the pivotal role of technology in accounting and it’s role in driving profitability for small and medium-sized enterprises (SMEs).
Critical Technology Trends in Accounting:
Our study surveyed Canadian small business owners, uncovering transformative insights at the intersection of accounting technology and business growth. Explore our key findings and understand why embracing digital accounting is more than a trend – it’s a business imperative in today’s economy.
Key Technology in Accounting Findings:
1. Growing Divide:
A substantial portion of small and medium-sized business leaders, 1 in 3 (32%) of all SMEs surveyed, feel they have outgrown their accountant. Only one-third of small and medium-sized business leaders (32%) reported being “very satisfied” with how their accounting and bookkeeping needs are currently addressed. This number drops significantly to only 24% among younger business owners seeking to expand their businesses.
2. Technology Adoption:
Younger business owners, those under 45, are embracing online accounting firms and technology at a higher rate than their older counterparts. They are nearly twice as likely to perceive value in cloud-based accounting (88%) compared to the older generation (47%).
3. Business Challenges:
The most common headaches for businesses are paying bills (34%) and managing cash flow (34%). Surprisingly, traditional accounting firms do not typically offer services that directly address these challenges, while modern accounting firms do.
4. Age and Growth:
Younger businesses tend to experience more growth-related challenges, with the most significant headaches occurring during the growth phase. Businesses under 45 are nearly twice as concerned about labor costs compared to older business owners.
5. In-House vs. Outsourced:
Younger businesses are more likely to hire in-house employees or online/virtual bookkeepers to manage their accounting needs, possibly reflecting a shift in their approach to accounting expertise away from traditional accounting firms. Business owners who are very or fairly profitable, are 12% less likely to use a traditional accountant or accounting firm than those who are breaking even or unprofitable.
6. Digital Transformation:
Accounting is increasingly being done digitally, especially among the younger generation (82%) and businesses aiming for growth (75%). However, businesses experiencing stagnant or decreasing revenue are more likely to use analog methods.
Navigate through an interactive journey of our study, featuring graphs, charts, and real-life testimonials from business owners who have embraced digital accounting solutions
The survey, conducted between June 16 and July 7, 2023, captures the responses of 500 participants based in Canada. Every participant is an SME owner responsible for their business finances. The data is weighted by region. The margin of error for a comparable probability-based random sample of the same size is +/- 4.35%, 19 times out of 20.
Stay ahead in a digital world and follow us on our Small Business Big Insights Podcast or on our socials (Facebook, LinkedIn or Twitter) for the latest updates and insights in accounting technology.
Have questions or need expert advice on digital accounting for your business? Connect with our team of professionals at Zenbooks.
About Zenbooks:
Zenbooks is a forward-thinking accounting firm dedicated to helping businesses thrive in the modern era. With a focus on cutting-edge technology and personalized service, Zenbooks empowers business owners to achieve their financial goals. Through a combination of expertise, innovation, and a commitment to excellence, Zenbooks stands as a trusted partner in financial success.