What to do when accounting software gets expensive

Guide5 min read | Posted on July 15, 2025 | By Svedha M
A laptop screen representing an accounting software price hike

Accounting software is essential for businesses of all sizes. Whether you're a solopreneur who's just starting out or an established business working out of various locations, your options for accounting software range from free to enterprise-level.

It is up to you to analyze and decide which one best suits your business needs. Choosing the right accounting software not only streamlines your financial management but also helps your business in multiple ways.

How do you know the right amount to spend on accounting software for your business? How will you know you're not overpaying or being subjected to hidden costs and price hikes? This guide helps you understand how pricing works for accounting software and what you should keep in mind when choosing one.

How much does accounting software cost?

Accounting software offers different pricing models that can be selected based on your business requirements and budget. Cost varies depending on the product market, revenue size, or transaction volume.

  • Perpetual license: User pays a one-time fee to access the software indefinitely.

  • Subscription-based pricing: No upfront fee is required. Instead, you can choose between a monthly or annual subscription fee.

Generally, accounting software subscriptions range anywhere between $25 and $250 depending on the plans and features. Remember, you might be running a small business today, but your business might grow faster than you imagined over a short span. When choosing accounting software for your business, always keep the growth aspect in mind and invest wisely.

Free vs. paid accounting software plans

The table below provides an overview of the differences between free and paid accounting software platforms. Some platforms, such as Zoho Books, offer core features even through their free plans, making them suitable for small businesses.

Feature

Free accounting software

Paid accounting software

Pricing

Does not require any payment.

Requires payment—either subscription-based or upfront fees.

Attribute

Covers essential tasks like creating an invoice, expense management, and basic reporting.

Includes advanced features such as multi-currency invoicing, customization, and compliance tools.

Intended market

Ideal for small businesses or startups with tight budgets.

Suitable for growing businesses needing advanced features or a business with a high budget.

Cloud agility

Available as a cloud-based solution.

Offers cloud-based deployment with advanced integration options.

Support

Limited customer support.

Reliable and comprehensive customer support.

Integration

Minimal or no integration with other systems.

Seamlessly integrates with a wide range of business applications.

Factors that affect accounting software costs

One might wonder why accounting software prices vary. Even within a single platform, multiple plans exist, ranging from budget-friendly options to premium solutions. As a business grows, users often pay additional fees for advanced features and add-ons. Listed below are the key factors that affect accounting software pricing.

Complexity and functionality

You pay for what you need. While the technology vendor determines the price for their solutions, one of the parameters that determines the cost is the features it offers. Typically, the higher the accounting functionality required for your business, the higher the price is for the solution. For instance, if your business just needs the basic functions, you can opt for a starter plan, but if your business serves customers worldwide and requires complex accounting capabilities, an advanced or premium plan may be necessary.

Cloud vs. on-premises

The pricing varies based on the deployment type, too. Cloud-based software typically follows a subscription model. On-premises software, on the other hand, usually requires a one-time upfront payment.

User limit

The cost of accounting software is also influenced by the number of users. Some pricing models adjust pricing based on the user count, while others include a set number of users with the option to pay extra for each additional user beyond the plan's limit.

Support and maintenance

Accounting software with reliable customer support and maintenance tends to be more on the high end than those without it. When it comes to maintenance, businesses should keep in mind that cloud-based accounting software requires less maintenance compared to on-premises solutions.

Customization

Custom solutions can be expensive. This feature allows you to tailor invoices, portals, templates, fields, and more to fit your business needs. However, the more an organization needs customization for its accounting software, the higher the cost.

Integration capabilities

Advanced integration features in accounting software often come with an additional cost. These capabilities enable seamless connectivity with other business systems, such as CRM and ERP, enhancing efficiency and data flow.

Vendor credibility

The reputation of an accounting software provider significantly influences its pricing. Solutions with strong security, industry recognition, and added value command a higher cost.

Accounting software price hikes and how to handle them

Many factors influence accounting software pricing, including business needs and feature enhancement. However, it is important to recognize unjustified price increases.

Frequent, unannounced price hikes, in the name of the introduction of feature upgrades or new functionalities, can be a warning sign. For small businesses, it is financially draining to spend more on accounting software and pay for features you never use.

The unannounced price raise can be overwhelming, but knowing the right way to react to it saves money for your business.

  • Do your research before choosing an accounting software; check its history of price increases. If a provider is known for price hikes, consider alternatives before committing.

  • In case of a price hike in the name of the introduction of new features, especially the ones that were previously free, determine whether they are essential for your business. If not, try opting out of it by reaching out to your provider.

  • If you notice an ongoing price hike after subscribing, explore alternatives with more stable pricing and seamless integrations.

A note from Zoho Books

Zoho Books understands user needs and offers subscriptions and features that are best suitable for all kinds of businesses. The subscription starts off with a free plan, and the paid plans start at just $15 for an annual subscription.

What's more, in the past four years, Zoho Books hasn’t increased its pricing by even a single dollar. Instead, it has only added more features for its users. The last time Zoho Books raised its prices, it introduced a free plan for small businesses.

With Zoho Books, you can manage your accounting processes, stay compliant, and do much more—all while getting more value at an affordable cost.

Bottom line

Before selecting an accounting software for your business, it is important to analyze the history of the accounting platform. Compare different software based on pricing and features to make a well-informed decision. Investing in the right software minimizes future financial strain, preventing situations where unexpected costs lead to budgeting challenges or the need to switch platforms.

Choose software with transparent pricing that offers flexible plans that accommodate startups as well as growing businesses—such as Zoho Books—to ensure long-term sustainability.

Leave a Reply

Your email address will not be published. Required fields are marked

The comment language code.
By submitting this form, you agree to the processing of personal data according to our Privacy Policy.