At a certain point every business has to upgrade its accounting software. Solutions like QuickBooks may be adequate to start, but not once businesses begin to grow and diversify. Committing to an upgrade is an important step for future success. The question is what kind of upgrade to pursue.
In the new book “Subscribed: Why the Subscription Model Will Be Your Company’s Future—and What to Do About It,” author Tien Tzuo argues that services are becoming more important than products. Most of us already rely on services like Netflix or Amazon Prime, and the idea of paying for access rather than ownership will soon become standard.
Tzuo highlights businesses ranging from lawncare equipment makers to executive aircraft companies that are embracing the subscription model and enjoying record revenues as a result. The business case is clear, but consumers should be equally enthusiastic about an economy where you only pay for exactly what you need.
Subscribing to Success
Formerly, businesses paid to own their accounting solution, then paid again to upgrade it. That is no longer necessary thanks to solutions that are available on a monthly or annual basis. Subscribing makes it much easier and more predictable to manage IT costs. But, crucially, subscription-based businesses offer a superior overall solution.
When users pay for access they have to actively renew at the end of each subscription period. And if they are unhappy they can end the subscription and seek out an alternative. As a result, subscription-based businesses focus intensely on cultivating happy and loyal users by offering innovative products and exceptional service. Simply stated, they try harder to earn your business.
Subscription-based businesses have an edge in this area because they also understand what users truly want and need. Cloud-based products generate giant amounts of data on what users like and what they don't. That data then guides tweaks and updates to the solution that make it a better product on a monthly, quarterly, or annual basis. Instead of waiting years for the next update, your accounting solution is always relevant and optimized.
Embracing the Subscription Model
The subscription-based software market grew by over 18% in 2017 according to Forbes, and Sage Intacct is a great example of why. It offers the kind of innovative features and expansive capabilities that enterprise accounting requires. Yet it makes them accessible to small and mid-sized businesses without huge tech budgets or in-house IT teams.
Sage Intacct also empowers these businesses to adopt a subscription-based model themselves. This is one of the few financial management solutions that is built to accommodate recurring and contract billing. Monthly payment management is easy thanks to automated workflows and intelligent revenue recognition tools.
Don’t settle for an outdated or under-powered accounting solution. A subscription service is designed to anticipate your needs in order to exceed your expectations. Explore the exact advantages by contacting AcctTwo.