•81% finance leaders say hidden costs and price hikes made them want to switch provider, with 64% feeling the increases aren’t justified
•Despite this, long implementation times put most (60%) CFOs and finance leaders off switching finance software
More than three-quarters (78%) of finance leaders have been caught off guard by hidden costs or unexpected price hikes from their financial software provider, according to a new survey by AccountsIQ, a leading provider of advanced financial management software.
The findings highlight widespread frustration over affordability and transparency in financial software pricing, with price increases adding to the financial pressures businesses are already facing in a challenging economic climate.
AccountsIQ’s survey gathered insights from 125 CFOs and senior finance leaders across the UK and found that 14% have been stung by price hikes, hidden costs (44%) or both (21%).
These challenges are prompting many to seek alternative providers; 81% said price increases made them want to switch to alternative software packages. In addition, 64% felt that the price rises handed out by their current providers were unjustified.
However, switching financial software providers is often perceived as challenging, with lengthy implementation times cited as the most common barrier (60%). Despite this, 57% of finance leaders have considered switching to a more cost-effective provider in the past year, and 29% are considering it. A further 36% have already switched or are actively looking for a new provider, highlighting the demand for more cost-effective and user-friendly solutions.
Darren Cran, CEO of AccountsIQ, commented: “Finance leaders are facing increasing pressure to manage costs while also having to deal with a multitude of global, political and economic challenges such as policy changes and inflationary shocks. Against this backdrop, the last thing they need is to be blindsided by hidden costs and repeated price hikes from their software partners.
At a time when software costs are rising, finance leaders are feeling the pressure to make strategic adjustments; the survey found that 41% have reduced spending in other areas to accommodate price increases. However, Cran says businesses in the UK and Ireland need to be supported during this time of volatility.
“It’s up to software providers to do everything they can to support the mid-market businesses that hold the key to economic growth. By helping finance teams work smarter, we can help them adapt, grow and overcome the challenges they face,” he concluded.
