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.