Home | TrendTracker | PowerBlog Reviews | The Experts | Newsletter
SMALL BUSINESS TRENDS brings you daily updates on trends that influence the global small business market.
Anita Campbell, Editor
Past life: CEO, corporate executive, tech entrepreneur, retailer, general counsel, marketer, HR ... (more)
email me
free business magazines
Trade publications FREE to qualified professionals. No hidden offers and no purchase necessary.
On Wall Street
The Deal
Computing Canada
Employee Benefit
Oracle Magazine
100+ additional titles. Click to browse.
Previous Small Business Trends articles can be found at the links below:
October 2003
November 2003
December 2003
January 2004
February 2004
March 2004
April 2004
May 2004
June 2004
July 2004
August 2004
September 2004
October 2004
November 2004
December 2004
January 2005
February 2005
March 2005
April 2005
May 2005
June 2005
July 2005
August 2005
September 2005
October 2005
November 2005
Or, use the search box below to find a
specific post:

Sign up for our FREE Small Business Trends newsletter. (View Current)

We publish regularly and promise we won't share your email address with anyone. (Privacy Policy)
* Don’t have time to read several dozen blogs a day? Pick two or three. Your brain will thank you for it.

Small Business Trends Radio
Tuesdays, 1:00 PM Eastern U.S. time
on Voice America network
Click to listen

November 1st: Torsten Jacobi, CEO of Creative Weblogging, joins host Anita Campbell. Sponsored by Six Disciplines. Show details.
Monday, October 10, 2005
Over Half Do Not Have Accounting Software
More than half of U.S. small businesses do not use accounting software.

AMI Partners, Inc., a research firm that specializes in global small business market research, notes this in a recently-published study, entitled "Small Business Accounting is Big...and Getting Bigger":
"U.S. small businesses (SBs; companies with 1 to 99 employees) spent approximately US$410 million on purchasing accounting software solutions in the last 12 months, and this figure is expected to cross the half-billion-dollar mark by 2008. The nearly 6% annual increase in accounting-software-related dollars augurs well for industry-leader Intuit (with their QuickBooks portfolio) and Microsoft, which recently jumped on the small business bandwagon with its release of Small Business Accounting 2006. More than ever before, SBs are searching for solutions that are easy to install, user-friendly and, most importantly, tailored specifically to their size. In addition, nearly three fourths of these businesses upgrade their accounting software package every one to two years, opening the door for consideration of new solutions."
One of the most interesting aspects of this study is that it covers very small businesses, down to one employee. Late last week I spoke by phone with Arjun Mehr, the analyst who authored the study. He explained that the sample might include sole proprietors, even, as long as they had an organizational structure such as a corporation or LLC.

He also confirmed one point that I suspected: that the half of small businesses with no accounting software fell primarily into the 1-4 employee category.

In this day and age, it would be hard for me to fathom that larger businesses of 5 employees and up could -- or would want to -- function without some kind of accounting package. (Of course, just when I think the entire world has to be computerized, I run into a small business still run completely on paper ledgers. Never say never.)

In any event, Arjun concludes that there is "tremendous untapped opportunity" in the market for small business accounting software. That's going to mean stiff competition among the two vendors, Microsoft and Intuit. Let's hope this translates into great deals for small businesses.

Tags: ;
More news... more trends... more insight...

Home | Privacy | Terms | SmallBizTrends
(c) Copyright 2003 - 2005, Small Business Trends LLC. All rights reserved.