The majority (82%) of buyers were looking to replace existing accounting software and most commonly because their business had outgrown their current system (35%). The top three accounting software packages used were QuickBooks (43%), Sage/Peachtree (15%), and Microsoft (5%). Most buyers preferred a web-based financial reporting system (64%) and needed functionality for core accounting and financial reporting. The majority of buyers were small businesses with 11-100 employees.

1. Software Advice BuyerView:
Financial Reporting Software
Insight into small business software buyers

2. Abstract
From 2013 to 2014, we talked to thousands of small businesses looking for the
right accounting systems for financial reporting. We tapped into a subset of the
data and discovered the following:
• The vast majority of prospective buyers (82 percent) wanted to replace an
existing accounting software system.
• Software replacement was most commonly driven by businesses outgrowing
their systems (35 percent).
• Among buyers with a deployment preference, the majority (64 percent) wanted
a Web-based financial reporting system.

3. Majority of Buyers Use Commercial Accounting Software
82% Commercial software
5% Manual methods
4% Proprietary system
4% Outsourcing
4% Nothing
The vast majority of buyers in our sample—82 percent—said they were currently
using commercial accounting software.

4. Majority Using QuickBooks, Sage/Peachtree or Microsoft
43% QuickBooks
15% Sage/Peachtree
5% Microsoft
36% Other
The majority of buyers were using either QuickBooks (43 percent), a Sage/
Peachtree product (15 percent) or Microsoft Dynamics (5 percent).

5. Growth Is Leading Reason for Replacing Software
0% 10% 20% 30% 40%
Percent of sample
Growth of business
Improve accuracy & efficiency
Consolidate systems
Modernize
Integrate with other systems
Automate manual methods
Need better support
Need cloud-based system
Current too expensive
Most buyers (35 percent) said they were seeking a solution due to the growth of
their company, while 26 percent of buyers needed greater efficiency and accuracy.

6. Top Functions Are Core Accounting, Financial Reporting
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Percent of sample
Core accounting
Financial reporting
Billing & invoicing
Budgeting & forecasting
Payroll
Fund accounting
Inventory management
Fixed asset accounting
Job costing
Core accounting was the top-requested functionality (requested 89 percent of the
time), while buyers mentioned wanting financial reporting 86 percent of the time.

7. Most Buyers Prefer Web-Based Financial Reporting
64% Web-based
36 % On premise
Among those with a preference, the majority of buyers wanted a Web-based
system (64 percent), while the remaining (36 percent) wanted on premise.

8. Most Were Small Businesses with 11-100 Employees
11% 1-10
56% 11-100
32 % 101-1,000
1 % More than 1,000
Fifty-six percent were from companies with 11-100 employees. Meanwhile, 32
percent were from businesses with between 101 and 1,000 employees

9. Buyers Were from a Variety of Industries
35% Public sector
15 % Professional services
14% Commerce
13 % Industry
8 % Technology
7% Energy
3% Marketing
4 % Other
Six main segments—the public sector, professional services, commerce, industry,
technology and energy—made up a combined 92 percent of our sample.

10. Learn More About Financial Reporting Software
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financial reporting software
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11. @SoftwareAdvice /company/software-advice
/SoftwareAdvice @SoftwareAdvice
Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.