When it comes to accounting software, pricing needs to be straightforward, not a guessing game or a mysterious unknown. But businesses are increasingly being blindsided by unexpected price hikes, extra charges for features that were once included, or rising subscription costs without warning or proper communication from their software providers.
Some big software companies count on inertia—raising prices quietly, hoping customers won’t notice or won’t want the hassle of switching to a more transparent, cost-effective alternative.
But here’s the thing: you don’t have to play ball when they change up the rules of the game. Knowing what to look for and what questions to ask will help you safeguard your business from hidden fees and unpredictable pricing traps—so let’s jump in.
The hidden costs lurking in accounting software
Here’s the scenario. You sign up for accounting software at a reasonable price. A few months down the line, you realise that essential features—multi-entity consolidation, advanced reporting, or even that shiny AI-powered tool that came as part of the package—are now locked behind additional paywalls.
You also discover that the 24-hour support you were promised is only available via a third party at extra cost. Here’s where hidden costs typically sneak in:
- Add-ons: Basic pricing may seem affordable at first, but the tools you need are classed as ‘advanced’ and often cost extra.
- User limits: Need more than a handful of logins? That’s an additional charge, sometimes per user.
- Support tiers: Some providers offer basic support for free but charge for priority assistance.
- AI-powered automation fees: AI is transforming finance teams, but some vendors use it as an excuse to introduce premium pricing.
Without clarity on these costs from the outset, you can end up shelling out significantly more than you bargained for.
The impact of ‘surprise’ price increases
An unexpected price increase isn’t just annoying; it can throw off your financial planning and disrupt operations. Imagine budgeting a fixed amount for accounting software, only to find that prices rise mid-contract, or key features move to higher-priced tiers.
This isn’t just a frustrating inconvenience—it directly impacts cash flow, forecasting and operational efficiency.
Some providers, despite their size and history, seem to treat price hikes as an unavoidable, routine ‘occupational hazard’—forcing their customers to absorb the additional cost or scramble to find an alternative.
But the plot thickens: when such increases are accompanied by endless rounds of 'strategic restructuring' to boot, customers can be left scratching their heads, wondering if their rising fees are covering innovation, the cost of internal shake-ups—or perhaps just plain greed.
Let’s say you’re running a small to medium-sized business, you might start with an affordable plan. But as you scale, you realise that integrating new entities or automating reports comes with a hefty cost increase.
Suddenly, the software that once seemed budget-friendly has become a financial burden with a significant impact on your resources.
How to protect your business from hidden fees
Transparency is key when selecting accounting software. Here’s how to avoid getting caught off guard:
1. Do your homework
Before committing, scrutinise the pricing structure of any accounting software provider. Ask for a detailed breakdown of costs, including potential add-ons.
If pricing details aren’t readily available and clear as day on their website, that’s probably a red flag.
2. Read all the fine print
Contracts and service agreements often contain clauses about price increases. Look for details on (and ask questions about):
- How often prices are reviewed
- Whether there’s a cap on increases
- What triggers a pricing change (e.g. user growth, feature usage)
3. Don’t be afraid to negotiate
When engaging with vendors, ask for:
- A fixed-price guarantee for a set period
- Clear definitions of what’s included in your chosen package
- Transparent terms for AI-powered features (are they included, or an add-on?)
4. Compare pricing models
Different software providers use different pricing models:
- Subscription-based: Monthly or annual fees, often with multiple pricing tiers.
- Usage-based: Costs depend on transaction volume, user count, or storage needs.
- Modular pricing: Pay only for the features you use.
- Understanding which model works best for you helps predict long-term costs and avoid creeping expenses.
5. Choose a vendor committed to transparency
Not all accounting software providers build their success on hidden costs. Not to brag, but AccountsIQ, for example, offers a clear and predictable pricing model, ensuring businesses know exactly what they’re paying for upfront—no surprises, no creeping costs.
AI-powered automation: Cost-saving tool or hidden expense?
AI-powered automation is transforming finance functions, making manual processes like reconciliation, forecasting, and reporting faster and more efficient.
But while AI is there to streamline workflows, some providers see it as an opportunity to introduce new charges—be sure to ask:
Are any AI features included in the base price?
Will any AI capabilities be subject to future premium pricing tiers?
Is automation charged per use, or capped at certain usage limits?
What to do when your provider increases prices
If you’re facing repeated price hikes or suddenly find yourself being charged for features that used to be free (e.g. Sage Copilot), it’s time to take a stand. Here’s what you can do:
1. Assess the long-term cost implications
A small percentage increase might not seem like a big deal—at first. But frequent hikes add up and creep up on you over time. And that’s what some providers are counting on.
Take this real-world scenario as an example: Sage 50 imposed a 10% price increase in September 2024, with another 8% rise due in April 2025.
Sage Intacct followed a similar pattern, with a 9% price increase last year and another 8% this year. If this trend continues, what would your costs look like in three years? It’s worth crunching the numbers and making the move to an alternative ahead of time if you need to.
2. Check if you can opt out of new charges
Let’s continue with Sage as a real-world example. The company has recently introduced a £20 monthly charge for Sage Copilot, its AI assistant, which was previously free.
Additional per-document fees for AI-driven automation are also being rolled out, particularly for processing purchase invoices, hinting at a shift towards actively monetising AI features on the platform.
So, If your accounting software provider starts charging for tools you originally had access to for free, check your contract terms to see if you can opt out or if you’re locked in.
3. Speak to your provider
If you’re unhappy with a price increase or new charges, speak to your provider’s customer support or your sales point of contact if you have one. Ask if they offer:
- A price cap for existing customers
- An exemption from new fees (especially for long-term users)
- A downgrade option that provides key functionality without add-ons you don’t need
4. Shop around and compare alternatives
Price hikes are often based on the assumption that switching is too difficult. But there are accounting software solutions out there that make migration easier than ever.
Unlike legacy systems that require complex transitions, providers like AccountsIQ offer seamless onboarding, full data migration support, and dedicated customer assistance to help businesses move away from providers that keep increasing costs.
5. Make the move to transparent pricing
If your current provider has a history of price hikes, consider switching before the next increase hits.
With AccountsIQ, you’ll always get a transparent, predictable pricing model—no unexpected fees, no forced add-ons. Just a product you can trust, clear communication on pricing, and a team committed to doing the right thing by their customers.
4 questions to ask when choosing accounting software
If you’re at the stage of choosing a software package, there are a few measures you can take to protect yourself from surprise price increases. Here are 4 key questions you can ask:
1. What are the circumstances under which pricing may change?
2. Are AI-powered features included in the base price?
3. Is there a cap on pricing increases during the contract period?
4. Are future add-ons optional, or will they become mandatory over time?
The bottom line: Certainty is non-negotiable
Accounting software should empower businesses, not lock them into unpredictable pricing models.
By prioritising transparency, reading the fine print, and choosing providers that commit to upfront, predictable pricing, you can make sure your software remains a valuable tool, not a hidden-cost sinkhole.
