Accounting software makes it easier than ever for businesses to manage the financial wealth of their company.

With a resounding 82 percent of all businesses failing due to poor or negative cash flow management, it’s good to know that there are helpful ways to improve your accounting.

While it is an alarming statistic for any business owner, they should understand that cash flow is not some convoluted concept that only the most experienced businesses can master. It simply comes down to establishing strong accounting practices within your company.

Small businesses, large enterprises and professional accountants can all benefit from understanding the trends of accounting solutions so they can cut costs, improve time management and be better prepared for future changes in accounting.

Accounting Statistics in 2019

To better visualize the impact that strong accounting practices can have for your company, we have compiled 30 accounting statistics for you to analyze:

Small-Business Accounting Statistics

Small businesses are the most susceptible to poor cash flow management. Coincidentally, small businesses account for 99.7 percent of all businesses. Understanding how to utilize small-business accounting software and manage your money efficiently could be the deciding factor in keeping your business afloat:

• 60 percent of small-business owners feel they are not very knowledgeable about accounting and finance (Small Business Report - Accounting)
• 64.4 percent of small-business owners use accounting software (Statistia)
• 30 percent of small businesses place accountants at the top of their list of trusted advisors (ICAS)
• 70 percent of small-business accountants see their advisory roles becoming more strategic (PayPie)
• 58 percent of small businesses don’t expect to meet with their accountants face-to-face (Arbitrue)

Cloud Accounting Statistics

Cloud accounting is steadily shifting the landscape of accounting away from the desktop and into the cloud. Cloud accounting saves companies plenty of money and storage space by allowing users to access the software via the internet instead of having to install the software across every employee computer. New research data illustrates the benefits and trends of cloud accounting:

• 67 percent of accountants prefer cloud accounting (Sage Practice of Now 2018 report)
• 58 percent of large companies use cloud accounting (Accounting Today)
• Companies that exclusively use cloud accounting add five times the number of clients than companies that do not exclusively use cloud accounting (Xero)
• Companies that use 100 percent cloud-based accounting saw a 15 percent year-over-year revenue growth (Xero)
• Cloud computing reduces labor costs by 50 percent (Forbes)
• By 2020, 78 percent of small businesses will rely solely on cloud technology (Accountancy Age)
• The global cloud accounting market size was $2.62 billions and is projected to reach $4.25 billion by the end of 2023 (AB Newswire)

Accounts Payable Statistics

A big pitfall for many businesses is defaulting on their accounts payable. When another business charges you for a service, they send an invoice (bill) to your company, and this invoice gets routed to your accounts payable. This is when your company racks up a bill or charge on its credit and must pay back the short-term debt. While this can seem like a lot of payments to keep track of, accounts payable automation software (AP automation software) can make the whole process painless and keep your company cash flow in a healthy state. Relevant accounts payable statistics include:

• 39 percent of AP professionals reported that their total invoices have seen an increase of as much as 10 percent over the past year (iPayables)
• AP automation can save $16 per invoice or more, depending on the size of your company (Vanguard Systems AP shocking stats)
• AP automation pays for itself within 6–18 months on average (Vanguard Systems AP shocking stats)
• Accounts payable professionals who automate invoice capture and payments save an average of one hour per day (MineralTree)

Accounting Automation Statistics

Accounting automation platforms allow accountants to skip the mundane tasks of accounting such as invoices and bill charges. With more accounting tasks being automated, accountants will be able to utilize data from technology and apply it to real business decisions with more speed than ever before. Understanding how to save time is useful for accountants to understand so they can keep up with customer and business demands:

• Over 50 percent of C-level executives in accounting expect the development of intelligent, automated accounting systems will have the highest impact over the next 3–0 years (ACCA study)
• AP automation can save $16 per invoice or more, depending on the size of your company (Vanguard Systems AP shocking stats)
• AP automation pays for itself within 6–18 months on average (Vanguard Systems AP shocking stats)
• Accounts payable professionals who automate invoice capture and payments save an average of one hour per day (MineralTree)

Artificial Intelligence (AI) Accounting Statistics

Artificial intelligence integration with accounting platforms offers uses such as automated data entry and data categorization, as well as AI accounts receivable. Not keeping up with AI accounting trends can cause your business to fall behind with slower work times. These statistics show that accountants are using AI to identify areas of redundancy and increase efficiency. 

• More than 80 percent of executives believe AI leads to a competitive advantage, and 79 percent believe it will increase their company's productivity (Journal of Accountancy)
• Robotic process automation (RPA) has reduced audit and contractual processing times from several months to a few weeks (Forbes)
• 68 percent of wealthy clients preferred having access to both a human adviser and a robo-adviser instead of just one of the two (Accenture The New Face of Wealth Management)
• 66 percent of accountants would invest in artificial intelligence (Sage Practice of Now 2018 report)
• 55 percent of accountants plan to use AI in the next three years (Sage Practice of Now 2018 report)

Final Accounting Statistics

• A study by the American Institute of CPAs found that 92 percent of CPAs said they are not future ready (CPA of future study)
• 83 percent of accountants say clients demand more from them today than they did five years ago (Sage Practice of Now 2018 report)
• 67 percent of accountants feel that the profession is more competitive than ever (Sage Practice of Now 2018 report)
• The number of auditors will grow from 1.2 million to 1.44 million by the year 2020  (Arbitrue)
• Within the next eight years, the global market for accounting software will have a value of $11.8 billion (Accounting Today) 

What this means for accountants

The statistics speak for themselves: Accounting can have a positive impact on the financial health of your company, save you plenty of time and improve your cash flow.

Furthermore, to stay competitive, small businesses and accountants must be aware of how the accounting world is rapidly changing to adapt to the AI and cloud accounting revolution.

Businesses can utilize plenty of free accounting software, or even look to accounting firms to handle their company finances. Either way, accounting is a core practice that every company needs to be aware of to keep cash flow moving.

Ready to learn more on accounting? Learn the best practices for having a positive cash flow in 2019.