According to the U.S. Chamber of Commerce, small businesses are increasingly turning to accounting software not just to manage books, but to gain a competitive edge in today’s fast-paced, tech-driven market.
“The best accounting software for small businesses can reduce errors, streamline taxes, and save time,” the U.S. Chamber of Commerce said in a recent post which covered its Empowering Small Business: The Impact of Technology on U.S. Small Business report. “Finance management tools for accounting, payroll, and payment processing are the most widely adopted technology applications in small companies.”
The report found that:
• 99% of small businesses are using at least one technology platform.
• 40% of small businesses self-identified that they use generative AI, nearly double the percentage from 2023.
• 91% of businesses actively using AI say it will help their business grow in the future.
• 81% of small businesses plan to increase their use of technology platforms.
• 77% of small business owners plan to adopt emerging technologies, includin AI and metaverse.
• While education around the benefits of AI remains the top barrier to adoption, new concerns are growing around compliance and staffing.
• 86% of small business owners say that proposed technology regulations would harm their ability to grow.
• Small businesses using the most technology are substantially more likely to have grown this past year.
• Small business owners who are using most technology have a far brighter economic outlook.
• With inflation being the biggest challenge facing small businesses, 79% report that technology has helped them avoid raising prices for consumers.
What type of technologies are small businesses adopting?
Providers like Intuit QuickBooks, Xero, and FreshBooks are leading the charge in adoption by small business, taken third to only social media and digital payments.
How much does accounting software cost?
The question most small business owners or managers want answered about account platforms is: What should it cost?
The U.S. Chamber of Commerce said:
The average cost of accounting software for small businesses ranges from $7 to $300 per month, with base plans running around $50 monthly. According to a Capterra pricing report, 47% of surveyed buyers “budgeted less than $210 per month.” You can find free accounting apps with limited features or enterprise versions with sophisticated capabilities for well over $300 monthly.
However, the price of accounting software depends on your business model and what you want to accomplish. High-end systems with enterprise resource management (ERP) and accounting cost more than bookkeeping software with invoicing and expense tracking.
“The best affordable accounting software for small businesses offers tiered pricing with entry-level plans that include core bookkeeping features for recording income, expenses, sales, and purchases,” it said. “Slight differences in how the vendor approaches usage limits, feature add-ons, and users can impact accounting software costs.”