Most UK mid-sized firms plan finance software switch soon

Almost all mid-sized businesses in the UK and Ireland are considering changing their finance software, according to new research conducted by AccountsIQ.

The CFO Mindset Report, based on a survey of 1,000 CFOs and finance leaders from organisations with 20-250 employees, indicates that 93% of respondents are planning to switch their finance software provider. Over 60% of these organisations expect to make the change within the next three months.

The report shows that finance leaders are dissatisfied with both ends of the market: many feel caught between older systems that do not meet current business needs and platforms that are deemed too complex or expensive for the size of their organisations. Hidden costs are also a significant concern, with 95% of those surveyed reporting unexpected expenses from additional tools or third-party support.

Key challenges

One of the pressing issues highlighted in the survey is the challenge of consolidating multiple accounts, with 34% of respondents seeking software that better supports this function. Additionally, 30% of finance professionals said they require improved reporting and 25% want more advanced features.

Concerns with implementation processes were also evident, with 29% expressing dissatisfaction with onboarding experiences. A further 28% reported that their current systems do not scale effectively as their business grows. Value for money remains a priority for 30% of respondents, whilst 20% cited issues with customer support as a motivation to switch providers.

Despite recognising the need for change, many finance teams remain cautious. The survey identified several major barriers to adopting new software. These include the need for board approval (cited by 35% of respondents), concerns over rising costs (33%), potential disruption to existing teams (31%), and previous negative experiences when switching systems (27%).

Finance leaders often feel they have two unappealing options: stick with software that's too limited for their needs, or make the leap to an oversized system that costs a fortune in time and money. It's a bit like joining an elite gym with every piece of equipment imaginable, but only ever needing a few of the machines. You're paying a premium for functionality you'll never really use. The good news is that there is a middle ground for those in the mid-market, and those who have found it are enjoying smoother processes, more productive and satisfied teams, and a more strategic approach to finance.

The findings underline that many businesses are seeking a pragmatic solution-software that provides necessary functionality, efficiency, and value without the drawbacks associated with large-scale platforms or the limitations of outdated systems.

Hidden costs and implementation barriers

Most respondents reported challenges with hidden costs. Complex pricing structures and the need for third-party support often result in organisations paying more than initially forecast. This sentiment was consistent across the majority of finance teams surveyed.

Implementation difficulties were also prominent, with nearly a third of respondents saying onboarding to new platforms was a source of frustration. These difficulties, coupled with concerns about disruption and board-level approval processes, can delay decisions about adopting new finance technology.

The research suggests that finance leaders are motivated not just by the immediate need for new software, but also by the desire to future-proof their financial operations through systems that can scale and adapt to growth. This is particularly important given that 28% said their current platforms cannot support their evolving requirements.

Seeking the middle ground

The survey highlights a growing demand for mid-market software solutions that balance advanced capabilities with straightforward implementation and cost-effectiveness. With a significant majority of businesses considering a switch in the near future, suppliers able to meet these demands could see increased interest from mid-sized companies.

Board-level engagement and the experiences of previous software migrations remain significant considerations for finance leaders as they weigh up the risks and benefits of change.

The CFO Mindset Report indicates that the key priorities for finance leaders are streamlined processes, reduced manual work, and the ability to generate better business intelligence. As companies look to address both immediate pain points and longer-term strategic goals, the findings point to a sector in search of reliable, right-sized solutions.