Cloud accounting software is a digital financial management system that stores and processes your accounting data online instead of on a local computer. It allows finance teams to access real-time books, automate routine tasks, and collaborate securely from any location.
Want to know one harsh truth? A business doesn’t fail overnight. Instead, its books fail first! Yes, in 2025, if you are still relying on your outdated accounting systems, chances are you are simply analyzing a monthly compilation of “outdated numbers”.
Okay, so what do modern organisations need? That’s accuracy + agility + real-time visibility. And that’s exactly what cloud accounting software offers. From mobile-first expense tracking to automated compliance updates, these modern software are changing how VPs and directors of growing D2C companies:
- Monitor financial performance
- Forecast/ budget
- Control risk
Read this article to learn why cloud accounting software is accelerating adoption across industries, some popular features most SMBs look for, and how your organisation can use it to enhance efficiency.
The Growing Popularity of the Cloud Accounting Software Market
In the United States, the cloud accounting software market was valued at USD 6.09 billion in 2024. This market is expected to grow at 6.3% each year until 2030. If we talk globally, cloud accounting software reached USD 26.08 billion in 2025. Studies further show that North America controls over 46% of this global market because nowadays many small and mid-sized businesses prefer tools that can be used from anywhere.
Why the Cloud Accounting Software Market is Expected to Grow?
In 2025, cloud accounting tools became highly popular as they replaced several manual tasks. Additionally, some D2C companies even use them to reduce errors and give VPs or directors up-to-date financial information.
Some major growth drivers of the cloud accounting software are:
| Growth Driver | Explanation | How Does it Benefit D2C Companies? |
| Automation of Invoicing | The software:
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| Automation of Financial Reporting | The following reports are generated from live financial data:
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| Automation of Compliance Tasks | The following compliance-related tasks are performed according to the latest regulations:
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| Reduction in Human Error | Automated systems replace repeated manual tasks such as:
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| Real-Time Visibility | The software updates all financial activity immediately, such as:
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What are the SMB Adoption Rates for Cloud Accounting Software?
Studies have shown that in the United States, over 75% of small and mid-sized businesses now use cloud accounting software. But why? That’s largely because of these two major benefits:
- Cloud-based tools allow them to better manage their day-to-day work
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- Teams can collaborate from different locations.
Further research found that across North America, about 67% of SMEs had adopted cloud financial tools by 2024. This rise is linked to the need for remote access, especially as more business owners work from phones, tablets, or laptops outside the office.
Additionally, some other factors indicating a high-adoption rate are:
| Factors | Meaning | Importance for SMBs |
| Mobile-First Features Account for 26% Of New Deployments |
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| 50% of Accountants Rely on Cloud Tools for Forecasting |
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What Do SMBs Look For in Cloud Accounting Software?
Several growing D2C companies and consumer brands in the US choose cloud accounting software for automation + more connectivity. These systems remove manual work and allow teams to work from any location. As a result, many SMBs report that cloud tools cut bookkeeping time by up to 50% and even raise accuracy.
But what features do SMBs prefer in their cloud accounting software? Let’s check them out:
1. Real-Time Dashboards
SMBs want accounting tools that show their financial position the moment a transaction happens. Real-time dashboards present updated:
- Cash flow
- Expenses
- Income
- Outstanding invoices on any device (whether a laptop or phone)
The primary advantage? This removes the need to wait until month-end to understand performance. As a VP or director of a consumer brand, you can spot issues (such as rising costs or delayed payments) the same day they occur.
2. Automation for Everyday Accounting Tasks
Automation is a major priority because it reduces manual data entry and lowers errors. Cloud accounting software can:
- Generate invoices
- Categorize expenses
- Capture receipts using a camera
- Match bank transactions automatically
This removes repetitive steps that usually take several hours each week. It also keeps records “consistent”, which is important for audits, tax compliance, and internal reporting.
3. Mobile Access + Scalability
Modern SMBs expect accounting software to function fully on mobile devices. They want to approve payments, view dashboards, or check invoices when they are traveling or visiting customers.
Along with mobility, scalability is also important! As the business grows, the system must handle:
- More transactions
- More users
- Multi-currency needs
A cloud accounting software should support all this without slowing down or causing disruptions. They must expand as the company expands!
4. Strong Security and AI-Assisted Calculations
Since financial data is sensitive, a cloud accounting software should offer security features such as:
- Encryption
- SOC-certified controls
- Automatic backups
Additionally, several D2C companies operating in multiple regions like the US, UK, and Australia also look for built-in compliance tools that track tax rules + update calculations as regulations change.
Furthermore, modern cloud accounting software comes loaded with the latest AI capabilities. In such software, the latest AI models:
- Identify errors
- Support tax preparation
- Create forecasts using live data
This reduces risk and keeps records accurate.
5. Customizable Reporting
Most SMBs value cloud accounting software, which allows them to prepare customized financial reports, such as charts and visual summaries. Next, VPs and senior managers analyze them to understand areas such as:
- Cash position
- Overhead trends
- Customer payment behavior
Besides, advanced “collaboration tools” offered by cloud accounting software allow multiple team members and accountants to work in the same system without version conflicts. This improves accountability and keeps everyone aligned on the same set of numbers.
What are the Latest Usage Trends of Cloud Accounting Software?
Studies show that finance teams now use cloud accounting tools for 60% of all real-time bookkeeping work. This means most day-to-day entries, updates, and tracking happen inside cloud platforms instead of spreadsheets or desktop software. Additionally, some more usage patterns you must be aware of are:
- AI has increased automated invoice processing by 32% in recent years. Nowadays, many invoices are scanned, captured, and posted without manual entry.
- Cloud platforms provide automatic updates, access from multiple devices, and outlier detection (identifying unusual transactions).
Additionally, many SMBs also focus on systems that can grow with them. About 54% of SMBs now spend more than USD 1.2 million each year on cloud services, which shows a strong preference for scalable technology.
How is the Cloud Accounting Software Integrated?
US businesses commonly connect their cloud accounting software to systems such as banking, payroll, e-commerce, and CRM tools. Some popular platforms that offer these connections are:
- QuickBooks Online
- Xero
- Sage Intacct, and more
Okay, but what is the benefit? These connections support multi-entity reporting, automated data flow, and reduced manual work across different departments.
Cloud Accounting Software = Multiple Hidden Costs! Instead, Outsource to Atidiv in 2025
So now you know that cloud accounting software is becoming highly popular in the US and globally, with a large share of SMBs depending on it for real-time visibility + automation.
But it is not all rosy! Many cloud platforms include hidden costs such as “add-on fees” for:
- Extra users
- Advanced features
- Storage upgrades
- Integrations
- Higher transaction volumes
These charges often appear after onboarding and can raise the total cost far beyond the original advertised price. This is why, in 2025, several D2C companies have shifted from in-house software to outsourcing their accounting departments to established US accounting firms like Atidiv.
With 16+ years of experience and a strong network of 390,000+ chartered accountants and CPAs, Atidiv provides complete bookkeeping and strategic financial advisory support. You can get started for only $15 per hour. Book a free consultation call to explore how we can support your business.
Cloud Accounting Software FAQs
1. Why are SMBs concerned about the security of cloud accounting software?
SMBs worry about security because about 43% of cyberattacks now target small businesses, mainly due to limited in-house protection. Solution? SMBs should choose cloud accounting software that offers features like:
- MFA (Multi-factor authentication)
- Encryption
- Automated backups
- SOC-2 compliance
Strong security reduces risks of data loss, fraud, and regulatory penalties.
2. What hidden costs should I expect when choosing cloud accounting software in 2025?
Most cloud vendors charge extra for:
- Users
- Payroll
- Reporting tools
- Storage
- High transaction volumes
Platforms like QuickBooks or Xero may start at $15 to $30 per month, but add-ons can raise costs much higher. Many SMBs discover that their “starter price” doubles once they add required features.
3. How do integrations help my business run smoothly?
Most D2C companies and SMBs integrate their cloud accounting software to:
- Payment processors (Stripe, PayPal)
- E-commerce systems (Shopify, Amazon)
- Payroll tools (Gusto, ADP)
- CRMs like Salesforce
These connections remove manual entry and sync sales, invoices, and expenses automatically.
4. Does AI in invoice processing reduce my workload or create new risks?
AI cuts manual work by automating data extraction and approvals. Studies show that such automation lowers invoice costs from $22+ to below $2 and reduces processing time by up to 80%.
But AI can still misread complex invoices, which can trigger compliance issues. Research found that around 10% of cases still require human review to avoid errors or fraud.
5. When should an SMB consider outsourcing accounting instead of using cloud software alone?
As a business owner, you may prefer outsourcing your accounting needs when:
- Software costs rise through add-ons
- Compliance complexity increases
- Your internal teams lack time to review AI-driven risks.
In 2025, many D2C businesses outsourced to US accounting firms like Atidiv, which offers expert CPAs, full bookkeeping, and advisory support starting at only $15 per hour.