This story starts with a dentist in Calgary, juggling the demands of her practice while spending 30 to 40 hours a month buried in spreadsheets.
Her evenings and weekends were consumed by manually reviewing bank statements, inputting transactions, and tracking expenses.
It wasn’t just frustrating — it was exhausting.
That’s when she learned about cloud accounting, and with the help of Sean Martin, manager of ease Cloud Accounting Services at MNP in Calgary, she transitioned her bookkeeping processes to the cloud.
“For her, this wasn’t just bookkeeping, it was a second job,” Martin recalls. “When we introduced her to a cloud accounting platform, her bookkeeping time dropped to just four to six hours. That freed her up to focus on her practice and her family.”
For small and medium-sized businesses (SMBs) in Canada, stories like this are becoming more common as companies move their financial processes to the cloud.
But barriers remain.
A 2024 PayPal report revealed that 59% of Canadian SMBs feel limited by a lack of technical expertise, while 66% found setting up an online business more challenging than anticipated.
This highlights a significant barrier to cloud adoption for SMBs.
That said, a 2023 report from Xero shows that accounting firms in particular have seen success through cloud tools, with 60% experiencing revenue growth directly tied to these solutions.
This suggests that while SMBs face challenges, those who adopt cloud platforms often benefit from greater efficiency and scalability.
Martin says cloud adoption often reveals inefficiencies in how businesses manage their finances.
“Many business owners assume they’ve got their financial processes nailed down because it’s how they’ve always done it,” he says. “But they often don’t realize how much time they’re spending on manual tasks that could be automated.”
Despite the clear benefits — from saved time to better decision-making — many SMBs still rely on outdated systems.
So what’s holding them back?
What is cloud accounting and why haven’t all SMBs switched?
Cloud accounting uses internet-based software to manage financial data. This means you’re not stuck at a desk in the back office — you can access real-time financial information from anywhere.
Platforms like QuickBooks and Xero have redefined how businesses think about financial management by centralizing data, automating tasks, and integrating with payroll, invoicing, and inventory tools.
But for some business owners, the status quo feels safer than switching.
“Some people don’t want to change,” Martin says, “but for some business owners, they really do see the value — that’s more time with my family and kids, more time to actually work on my business, or spend more time with clients.”
Misconceptions about cost and complexity also hold some SMBs back. But as Martin emphasizes, cloud platforms are designed to simplify processes, not complicate them.
They’re also more affordable than many assume, with subscription-based pricing that scales with business needs.
Data security is another concern that holds SMBs back from moving to the cloud.
While some SMBs worry about storing financial information in the cloud, Martin explains that modern platforms prioritize security.
“They use encryption and comply with strict security standards to protect sensitive data,” he says.
Why having data in the cloud is the first step
AI tools like automated categorization of transactions or predictive cash flow forecasting rely on having real-time data.
Cloud accounting lays the foundation for these technologies.
“We can put a live look at your cash flow together for the next six months and shift that towards forward-looking planning, which is what many clients need,” Martin says.
Without centralized, real-time data in the cloud, businesses miss out on the full potential of these advanced tools.
And once systems are in place, SMBs can leverage AI for deeper insights, fraud detection, and better resource allocation, further modernizing their operations.
The adoption of cloud platforms isn’t just changing how SMBs do their accounting — it’s transforming the accounting profession itself.
Accountants are moving away from basic number-crunching and compliance tasks to take on advisory roles, helping clients interpret financial data and make strategic decisions.
This evolution is fuelled by cloud technologies that free accountants from manual processes and allow them to focus on building client relationships.
“It’s not just about crunching numbers anymore,” Martin says. “It’s about delivering insights and helping clients succeed.”
The shift has made the profession more dynamic and client-focused, aligning with broader digital transformation trends.
Accounting is just one step in a larger digital transformation story
For SMBs, the move to cloud accounting is part of a larger shift in how businesses are retooling their operations.
Accounting is just one piece of the puzzle as companies increasingly move their foundational processes to the cloud.
By centralizing critical systems like accounting, payroll, customer management, and inventory, SMBs can create a flexible, scalable infrastructure that adapts as their needs evolve.
Even for businesses that aren’t tech-savvy, starting with moving processes to the cloud lays the groundwork for future innovations like AI-driven tools and automation, which are already becoming default features in Microsoft and Google cloud environments.
As more SMBs embrace cloud platforms, the focus shifts from why to how.
For businesses that might be hesitant to start, it’s important to recognize that cloud adoption doesn’t have to happen all at once. Moving just one process to the cloud can unlock efficiencies and create a foundation for integrating other systems over time.
Once the plumbing of a business is centralized in the cloud, companies can layer in AI-driven tools, automation, and more advanced capabilities as they grow. The key is taking that first step, knowing that the cloud offers flexibility and scalability to adapt to future needs.
This article was created with the assistance of AI. Learn more about our AI ethics policy here.
