Rising Costs of Accounting Software

The cost of software for accounting firms has reached unprecedented levels, typically consuming about 4% to 6% of a firm’s revenue. For instance, a firm generating one million dollars in revenue may effectively spend the equivalent of a full-time employee’s salary on software alone. This trend is expected to worsen as artificial intelligence (AI) becomes more integrated and agentic, performing tasks traditionally handled by employees. As software companies push for higher prices in light of these advancements, firms must prepare for a tougher financial landscape.