New research released today, by UK accounting software provider iplicit, has revealed that the fear of losing historical financial data is the major barrier to upgrading From legacy accounting systems.
iplicit has surveyed the views and opinions of 1000 UK finance decision-makers, with 42% admitting they are reluctant to change their accounting system because they fear they will lose critical historical data – a rise from 26% in 2023.
This finding is fuelled by the fact that several accounting software providers are using fear as a tactic to hold their customers hostage. Punitive right-to-use licences and resistance to assist in migration away from the current system often leaves finance decision-makers concerned that the pain of change is greater than putting up with the challenges of staying with the legacy software.
It’s understandable that finance decision-makers have concerns over losing this data; not only is this information essential to comply with HMRC requirements, but without historical data, a business loses an incredibly valuable asset.
The cost of having to pay for a Right-To-Use licence (RTU) to access historical data is the second greatest concern, with 32% identifying this as a significant barrier. With an RTU licence typically costing 50% to 100% of the standard software licence, this is an additional cost to access essential information.
Lyndon Stickley, Chief Executive Officer at iplicit, commented on the results, “The sharp rise from 26% to 42% in just a year highlights just how scared UK finance decision-makers are about losing historical data during a system change. This fear is becoming a significant barrier to technological advancement. Yet, it is largely unfounded.
Providers of accounting software should have a responsibility to address these concerns, offering clear guidance and robust support to alleviate these fears.”
“By demonstrating how cloud solutions can safeguard data and improve operational efficiency, I firmly believe that we can help UK finance decision-makers to move beyond the obvious limitations of legacy systems and embrace the full potential of modern, on-premises cloud accounting systems,” added Stickley.
By sticking with legacy software, finance leaders are likely to be holding their organisations back. Embracing on-premises cloud technology not only safeguards critical data, but also provides a host of operational efficiencies.
Stickley continued, “The fear of losing historical financial data should never be a barrier to adopting more advanced and effective accounting software. It’s time for finance leaders to overcome, break free from oppressors, and switch to an accounting software provider that isn’t going to hold you hostage, by charging you to access essential historical data.
Hesitation to switch accounting systems is not just a matter of convenience, but a significant roadblock to progress for finance teams across the UK. The fear of losing historical data is understandable, but it’s important to recognise that on-premises, cloud-based systems offer far superior data security and accessibility compared to outdated solutions.
With today’s technology, data migration can be seamless and secure. RTU licences are both intimidating and unnecessary. The benefits of modern cloud solutions include enhanced security, efficiency, and scalability, with the ability to import historical data and indeed export it easily, should you ever wish to migrate to a different system in the future.”
“If you’re exploring new accounting software, do your homework and recognise that, despite what your vendor may tell you, you can access your legacy data without shelling out for an unnecessary and costly licence,” concluded Stickley.
