The Rise and Rise of Small Business Software

In the past, the majority of small businesses did not have access to software that was suitable for their business’s needs. Enterprise software delivered business analytics to large businesses and dominated across customer relationship management, enterprise resource planning, business intelligence, enterprise performance management and supply chain management. The vendors offering these large and complex solutions include Oracle, SAP and Microsoft. Small businesses typically weren’t able to access this software as it was associated with high licensing, maintenance and support costs.

Although Oracle, SAP and Microsoft are still dominating the large business market segment, new options have emerged for smaller businesses. Cloud software is sold as a subscription based service and is now providing small business owners with simple, convenient and cost effective productivity solutions. It’s no wonder cloud software providers have eroded the market share for traditional on premise software. Currently small-to-medium business software solutions have a 14.2% market share. This is partially due to the contribution of niche and low-cost cloud software options which have provided excellent value for smaller businesses. Additional benefits of cloud based software include real-time data and access to business information anytime, anywhere and using any device.

Cloud software for small business offers streamlined operations with seamless updates. Software updates are now developed and delivered faster than ever before. The software is so simple to use that micro businesses are purchasing cloud subscription online using their credit cards. However, sizable operations may require assistance in selecting, implementing and managing cloud software. Most businesses will also require professional advice from an accountant on how to interpret business analytics.

Businesses tend to purchase cloud software for database, storage, backup and security software. Businesses using database cloud software usually do so to find our pattern in sales, buyer activity and customer preference. Concerns over the protection of business privacy and security has increased the sales of internet security products. Security may be improved when using cloud software through better disaster recovery. No productivity will be lost if a device is stolen or for example damaged in a fire or flood, as users of the software can use any device and start working again. Just like internet banking, cloud software users have a secure login and password that can allow access to information whenever necessary. Backing up on premise software can be expensive; that is if the backups are even done! When using cloud business software backing up should not be required. In addition to this user permissions can be utilised to control the level of access for users.

As IT adoption grows, so does the availability of cloud software. It is expected that there will be many more cloud software offerings on the market in the next few years. This is largely attributed to the rising level of IT adoption due to the national broadband network, the increase in use of mobile phones and other devices which is driving demand for software. In addition to this, the federal government incentives for new business start-ups is expected to see an increase in entrants to this market. However, businesses aren’t likely to change or upgrade software unless it is viewed as generating a significantly higher level of productivity or in line with industry or environmental changes such as a new tax system.

Even though cloud software has made it significantly easier to setup and use business software my advice is to speak to the team at PCSOFT about a complete solution for your business.

Michael is a highly experienced certified practising accountant (CPA), he sits on the board of several companies and is the president of the Parramatta Chamber of Commerce. Michael, Jim and Paul are the directors of the Parramatta based accounting firm ATB Partners, which was founded over 20 years ago. The successful firm is well known for its highly sought after tax consultants, financial advisors and business mentors.  ATB Partners specialises in providing advice to clients in retail, wholesale, manufacturing, professional services, franchise and construction. Please visit www.atb.net.au for more information.