Over recent years we have seen more accounting and tax software providers impose a 90-day notice period (prior to the renewal date) to lock customers into their products. At BTCSoftware, we know the stress and burden this places on accountancy practices and businesses. It’s a key reason why we don’t impose a notice period in our contracts.
Longer notice periods and rising prices
The longer notice periods in the accounting and tax software market have also gone hand in hand with hefty rises. In some cases, we’ve learned of accountancy practices being notified of an annual rise (often as much as 10%) after missing their 90-day notice deadline. This gives them little choice to terminate a contract that will now incur a sizeable outlay for their business.
Hampering business agility and growth
In fact, we’ve observed a rise in customers of other accounting and tax software providers voicing their concerns about the stringent and forceful measures their current provider is taking to lock them into contracts. This does nothing to help accountancy practices and their long-term growth.
At BTCSoftware we recognise small and medium-sized accountancy practices and businesses need flexibility in order to adapt successfully to today’s working environment. They need software which easily accommodates and flexes to the demands on their business, and which doesn’t penalise or prohibit success along the way.
This is why we remain firmly committed to continuing to provide flexible contracts for our software as well as transparent pricing. We limit any price increase each year to a maximum of 5% per annum and have honoured this for many, many years. It’s one of the reasons why our customers say we’re such good value for money.
6 ways not to get caught out by 90 day notice period clauses
If you feel your current provider is enforcing strict notification clauses and tough price hikes in your software contract, here are our tips to help release and give you the freedom of movement you rightly deserve.
1. Check out your software’s annual renewal date – whether you pay monthly, quarterly or annually your software will have an annual renewal date. Find out when that is and be prepared that, if you have different products from the same provider (i.e. payroll and tax software), each may have different renewal dates.
2. Be clear what your notice period is – check your contract to see what notice period you’ve been assigned.
3. If you want to terminate your contract – notify your provider at least one month before your notice period is due to end. Some software providers have been known to drag their feet in responding to contract termination requests. Give yourself plenty of time to serve notice and be prepared to badger your provider till you get a response. Keep all correspondence as evidence to show you served notice ahead of your notice period deadline. Remember, you do not need to confirm your intent to remove yourself from the “auto-renewal cycle” at exactly 90 days prior to the renewal, this request can be made any time prior to the commencement of the 90 days-notice, even at the point of renewal for the following year. Any request you make do so in writing so that you have a recorded date of the request.
4. Familiarise yourself with when your software provider traditionally puts up their prices and gauge where this falls in relation to your contract’s notice period. What you don’t want is for the price to suddenly rise to a point you can’t afford when you’ve missed your deadline to serve notice.
5. Resist signing up to automatic renewal pricing where possible. Quite often large software providers will offer an introductory discount offer to attract new customers. They then sign them up to automatic renewals where the price increases to list price. In some cases, this can be quite a hike. When signing up to a software contract, make sure you know what the provider intends to price your software at after the first 12months.
6. Shop around. Give yourself plenty of time to shop around for alternative software providers well ahead of your current contact’s notice period. Try and evaluate like for like to gain a more accurate comparison. So for example, as well as the software’s price, what else you get for the subscription like free or charged training? Unlimited or limited support? Transparent pricing about renewals? Any free add-ons – such as apps? Draw up a list of the key components you want in your subscription and evaluate different providers against these.
Summary
Whilst you won’t be able to change the terms of certain accounting and tax software providers, you can certainly extricate yourself from draconian contracts if you’re savvy to your software’s renewal date. Make it a clear marker in your calendar and give yourself plenty of time to review other options. This will ensure, if you feel another year’s contract with your provider doesn’t make commercial sense to your practice or business, you have plenty of time to serve notice. Be prepared to badger your existing provider to undertake your wishes in accordance with their terms and conditions.
If you are worried about the effect your current software provider’s contract is having on the commerciality of your practice or business, contact the Sales Team at BTCSoftware on tel: 0345 241 5030 or email sales@btcsoftware.co.uk
