Finance CPAs see hidden fees, price hikes in software

The vast majority of finance leaders have been blindsided by the true price of their software, whether through hidden costs or sudden price hikes. 

This is according to a recent survey from financial management solutions provider AccountsIQ, which found that 78% of CFOs and senior finance leaders have been caught offguard this way. More granularly, the survey found 14% of the respondents saying they’ve been surprised by sudden price hikes, 44% said they were surprised by hidden costs, and 21% reported both. 

“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,” said AccountsIQ CEO Darren Cran. “Against this backdrop, the last thing they need is to be blindsided by hidden costs and repeated price hikes from their software partners.” 

The survey found finance leaders are not taking this lying down, with 81% of respondents reporting that price increases made them switch to more affordable alternatives; and 64% indicated they felt the price increases from their current providers were unjustified. Still, it’s not necessarily easy to switch software, with the most common barrier to doing so being long implementation times, cited by 60% of people. The survey found that 36% of respondents already made a switch or are actively looking for a new provider. 

Not everyone feels the need to switch, though. The survey found that 41% have reduced spending in other areas to accommodate the price increases. 

The data calls to mind another survey which found that 70% of financial service professionals, including accountants, regret at least one software purchase over the past year (see previous story). The survey, from business technology consulting firm Capterra, found that 70% of the respondents regret at least one software purchase made in the past 18 months. Additionally, 42% of respondents experience “purchase regret” with accounting and finance tools in particular. Of those who regretted at least one software purchase, 57% indicate these regrettable decisions have resulted in substantial (50%) or even monumental (7%) financial repercussions.

As for what exactly they dislike about their new software purchase, the most common reason (35%) cited on the Capterra survey was because the product was too basic for their needs. The next most common reason (32%) was the respondents either could not find meaningful ROI on their purchase or the total investment was more expensive than they anticipated. Other reasons cited were the technology was too complex versus too simple (31%), the technical implementation was too slow or difficult or it was incompatible with existing systems (both 30%), or the software was not user friendly, had poor technical support service, and was difficult with training/onboarding users (all 29%).