In today’s strong economy, businesses large and small are booming. But with growth comes added complexity. Are businesses using accounting software that’s up to the task?
At AITS 1, we’re always seeking a better view of the market. Who’s buying accounting software in 2018? What drives companies to upgrade to today’s more powerful, feature-rich packages? And what new functionalities are these firms seeking?
To find out, we looked at more than 3,000 accounting software projects from the past year. The result is a portrait of the needs and motivations of software buyers nationwide.
Here are some of our key findings:
- New buyers are a big chunk of the market. 37% of the companies we surveyed are buying accounting software for the first time.
- More than one-third of upgraders are QuickBooks users. 35% of upgraders are coming from QuickBooks, and 11% come from Sage 50.
- Many buyers want functions beyond core accounting. Over 20% need software that handles payroll, inventory, and invoicing.
- Large companies want business intelligence. Businesses with 50+ employees are more than 70% more likely to need software that handles budgeting/business intelligence (BI) and fixed assets.
- Large companies are cloud-averse. They’re 41% less likely than small companies to prefer cloud-hosted software.
In the big picture, we see that more and more firms are finding that legacy accounting systems can’t keep up with their needs. Naturally when companies consult with us, they typically need something beyond what basic packages like QuickBooks and Sage 50 have historically offered. They’re looking for more robust software with more features and better security.