How to Deal with Accounting Software Price Increases

In the growing business world, it is crucial for businesses to choose accounting software that offers plans and features suitable for every stage of growth. But what if a product that initially appears to be a feasible option suddenly reveals its true nature through unexpected price hikes without any corresponding upgrade or improvement? It can be just as overwhelming as it sounds.

Switching between platforms is not an easy task, especially when disruptions arise. So, how can businesses deal with an unexpected price hike in their accounting software? 

This article explores the potential reason behind rising accounting software costs and what users can do—both before choosing a platform and after experiencing a price hike. 

Potential reasons behind accounting software price hikes 

Accounting software costs might vary depending on a number of factors, it is important to recognize what is truly worth your investment. Before choosing accounting software or upgrading to a particular feature, make sure you understand your business needs and spend accordingly. Below are some of the key elements that influence pricing: 

• The deployment type of the accounting software affects the pricing. Cloud-based and on-premises software have different price ranges. 

• User count is another factor that affects the cost of accounting software. There is a pricing difference based on the number of users added to the subscription, or an additional amount is charged for every user added after reaching the limit. 

• Personalized solutions can be expensive, as they allow you to customize accounting software according to your business profile. 

• Advanced integrations can be costly, as they allow seamless connections. 

• The reputation of the accounting software plays an important role in pricing. A platform with good positioning and added value has a direct influence on pricing. 

• Artificial intelligence (AI) and related advancements have become a new strategy, with some accounting software providers using those to justify price hikes. 

• Automation and other so-called “fancy” features, which are actually quite basic, in reality, have also contributed to increased pricing imposed by certain accounting platforms. 

How are businesses affected by price hikes? 

Price hikes affect not just the budget but the entire financial plan of a business. A sudden increase in accounting software pricing can be hard, especially for small businesses. Imagine investing in accounting software, thinking you have made a smart decision. Based on the pricing at the time you opted in, you might have assumed it would remain stable for a reasonable period. Facing a price hike after planning your entire budget around the earlier projection can be exhausting. In such scenarios, you are often left with few options: either adjust to the increase or switch platforms in a hurry. 

What can be done to deal with price hikes? 

Unannounced price hikes can be a hassle. You can be better prepared if you know how to mitigate the impact they may have on your business. 

• "Prevention is better than cure." With that in mind, it is important to know what you are getting into. Before opting in for accounting software, check whether the software has a history of price increases within short intervals. 

• Evaluate whether the features you are paying for are necessary for your business. If not, consider switching to a plan that better suits your business requirements. 

• If you feel like a price hike is unjustified, raise the issue with the provider and look for discounts or other alternatives. 

• When the price hike becomes too frequent or too steep, it's a sign to explore other options. Explore other accounting software available in the market and switch to the one that offers the features you need with more stable pricing. 

Final thoughts 

Accounting software plays a significant role in streamlining a business's financial process. It is important to invest in a solution you can rely on for the long term. Choose a single integrated platform that manages core accounting functions as well as offers collaboration, automation, and customization, all at an affordable cost—so you can rely on it for the long term.  

The solution should be applicable and friendly to both the business and their accountant. Today, most businesses rely on accounting or bookkeeping firms for their financial management, so the software must enable seamless communication and collaboration between both parties. 

Continuously switching between platforms and navigating unexpected price hikes is not an easy task. So, take time to understand your software before committing to it—because ideally, it should serve your business well for years to come. 

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