I’ve updated my statistics on cloud accounting adoption from the sources to which I have access. There have also been some significant announcements since I last posted these statistics. The key takeaway here is that QBO is dominant in the US, and Xero is the leader outside the US, especially in Australia/NZ/UK.
Key changes in the small business cloud accounting space in the last year or so include the following:
- Wave Accounting has been acquired by H&R Block, who is now offering bookkeeping services to Wave Accounting users.
- Intuit is in the process of implementing QuickBooks Online Select, a new service to help QBO end users with first time setup of QBO.
- Xero discontinued its payroll offerings, and now recommends that people use Gusto for payroll
- Sage acquired Auto Entry, a company which uses AI and OCR to extract data from invoices, receipts, bank statements, credit card statements, and other sources. We expect that Auto Entry will turn into another Sage connected service which will connect to Sage Business Cloud.
I also track the ratio of Intuit’s desktop/online ecosystems, and for the first time ever, the QBO ecosystem had more revenue than the desktop ecosystem.
I’ve been tracking the user counts of cloud accounting tools for microbusinesses from publically available sources for about seven years now. My latest cloud accounting user counts appear below. Note that Intacct probably shouldn’t be in this list (especially since we also didn’t include other mid-market apps like Oracle NetSuite, as they’re both a little “up market” for most users of this. As you know, FreshBooks and Wave are private, and don’t have to report anything publically, and with Kashoo doing more as a bookkeeping service instead of as a software company, the user counts there (which were hard to get anyway) are a little less relevant here. We expect to have new data from Intuit, Xero, and Sage sometime in late April/early May.
P.S. Tipsters who have good public (non-confidential) data sources for user counts (e.g. court filings, press releases, etc.) which are more detailed or more current than this (as I write this on March 27, 2018), I share Starbucks cards with those who point new things out – I’m @BFTCPA on twitter.
P.P.S. If any software publishers want to be included in this list on a going forward basis (or want any of the analysis which goes along with this), including some work on cloud vs. on premises for user counts, reach out to me and we can discuss.