Cash is still very much king for small businesses and any tool you can use to improve cash flow should be considered.
Xero have recently released some stats detailing the average improvement in cash flow for businesses using their software.
Earlier in the year I wrote a blog on some of the other benefits of accounting in the cloud:
After aggregating some 16 million invoices in our database, we’ve found out that worldwide on average Xero users are getting paid more than two weeks faster than they were in late 2011. In October 2011, Xero users were getting paid after an average of 48 days. Now they’re getting paid in an average of 33 days – a 15 day difference.