Accounting Software 2007 == Payroll Software 2019
The similarities between the payroll software market now and the accounting software market of 2007 are remarkable.
In 2007 accountants were relatively happy with the “all you can eat” model of cheap desktop software. Pay once, do as much as you like at no extra cost.
But of course there was an extra cost - training, time, support and staff costs. But hey, what do a few ￡20,000 salaries matter? The software only cost us a few hundred quid!
There were a few incumbent suppliers that owned most of the market (Sage, Intuit) who weren’t interested in this new-fangled online malarkey.
(The term “SaaS” wasn’t used back then. And “cloud” only gained a foothold when Microsoft started a marketing campaign using the word a few years later)
Other than some forward-thinking early adopters, accountants did NOT want to move online. In fact, the inefficiencies of desktop software was creating a revenue stream for them.
Ultimately it was the clients that forced accountants into the cloud:
“I want to use KashFlow/Xero/Freeagent. So adapt, or I’ll find an accountant that will!”
Now - in no small part thanks to the phenomenal market-educating efforts of the guys at Xero - accountants get it. SaaS accounting is a no-brainier.
But for payroll? Nah, desktop software is cheaper. ￡189, all you can eat.!
And just like 2007, it’s dominated by incumbents with no visible signs of SaaS plans. Ie Moneysoft Payroll Manager and (admittedly a very well executed product) BrightPay - and the green Geordie giant of course.
But watch this space.
This time it’s not only the clients dragging accountants to the cloud for payroll. There’s a well-developed ecosystem that’s going to significantly speed up the process.
Challenger banks, SaaS HR products, modern temporary worker apps/agencies, cloud rota solutions - they all see how a connected, API-driven cloud payroll like Staffology make sense for them and their customers.
And between them they cover hundreds of thousands - no, MILLIONS - of employees.
So if you, the accountant, want to work with the employers in this ecosystem then your low-cost, silo-ed desktop product just isn’t going to cut it, sorry.
“This is what we’re using - if you can’t/won’t use it, we’ll find someone who can”
Sound familiar?
The revolution will not be televised.
But I might tweet about it occasionally.
Finance Manager/Management Accountant/Accounts Payable/Receivable
5 年Its all part of the trend and future of bookkeeping and accounting generally. In 10 years bookkeeping and associated jobs will be consigned to the past, much like many jobs, technology is changing rapidly. With scanning tech etc, mobile phones can capture invoices and upload to cloud based accounting software.? I dare say in years to come, we wont even need accountants either. Some will be happy about that, those employed and having studied for years to become qualified etc, well they wont be too happy. Hey ho, such is life in the modern age.
Author, keynote speaker, multiple business owner.
5 年Great article Duane Jackson. I remember hearing the same arguments against online software in-house, back in 2007 :-)? And funnily enough, it's only accountants that see it that way!? You / the team should connect with Claire Law, would be great to learn more about the software - and glad to see the idea you'd just coded when we met is now a reality!?
I help accountants and vendors in the accounting community, with their profit, capacity and growth.
5 年Vive la revolution