Companies using accounting software reduce their manual data entry errors by 90%.
Surprisingly, despite these benefits, only 50% of businesses are utilizing the software.
We’ve asked accounting experts for their insights into these figures, and what software buyers are looking for when selecting accounting software. We’ve also researched software product data to provide you with the latest facts and figures on accounting software - including the latest pricing estimates.
Quick jump to:
- How much does accounting software cost?
- How do businesses manage their accounting currently?
- How many businesses use accounting?
- What is the biggest problem with accounting practices?
- How does automation impact accounting?
Please see our research and findings below.
1. The average cost of accounting software is $96 per month
According to our pricing data, we’ve found the average cost of accounting software to be $187 per month.
Pricing models typically vary on a per month basis or a per user basis, with a few software providers choosing to charge based on the number of transactions and returns.
2. 82.9% of businesses are using Excel to report balances
There are a huge number of organizations relying on Excel spreadsheets, rather than specialized software to manage their accounts and reporting. Interestingly, the same report outlined that less than 40% are happy with their existing accounting processes.
3. Only 50% of businesses use accounting software
“In a survey of over 1000 owners of businesses with 1-500 employees, and only half of them use accounting software to balance their books. As companies get bigger, they're more likely to adopt software solutions, but 41% of small business owners try to manage finances by themselves. Business owners who use software or rely on external advisors tend to be much more confident everything is handled correctly. They also tend to expect higher revenues than business owners who do everything themselves.” Elliot Brown, director of marketing for OnPay.
4. Human error accounts for 41% of inaccurate numbers in reporting
It’s unsurprising that manual errors result in inaccurate reporting showing a clear weak link in the accounting process. Businesses using manual data entry experience more errors and inaccuracies compared to those who are utilizing accounting software and automating their data entry and processing.
5. Accountants who use automation reduce their manual data entry error by 90%
“Automation presents a monumental opportunity for companies to improve their finance function. First by reducing manual data entry errors, which helps companies build reliable financial reporting - as well as reducing the risk of being audited, overpaying vendors or doubling up on work. Over time this will lead to better planning and huge efficiency gains. Implementing automation technology also helps to reduce time spent on routine tasks, allowing teams to take on more strategic work, which will drive value to businesses,” Cathrine Andersen, CEO of Roger.ai, says.
To find more accounting software please view our category page where you can shortlist and make custom comparisons.
If you have an interesting piece of data you believe belongs on this report, please contact me directly at megan@softwarepath.com to let me know!
References
http://ww1.prweb.com/prfiles/2014/06/05/11918715/Financial%20Close%20Benchmark%20Report.pdf
https://www.prnewswire.com/news-releases/over-half-of-global-executives-surveyed-not-confident-in-identifying-financial-data-inaccuracies-prior-to-reporting-according-to-blackline-300797016.html
http://roger.ai/
https://onpay.com/small-business-hr-software/2019-small-business-finance-hr#general-finance-and-accounting-practices
