Software is a powerful tool used by businesses to manage many important activities that pertain to the seamless operation of the business, like sales, hiring, payroll, meetings, and customer relationship.
Business software costs a lot to develop from scratch; therefore, many businesses usually opt for subscriptions to gain access to the tools. Nevertheless, some software may need to be developed in-house.
They are used in every department of an organization. According to Admiral Consulting Group, a Microsoft Software Consulting company, business software costs are influenced by the business type, size, industry, required features, customization, and usage frequency.
The average price of software for business
It is tough to estimate a general average cost of business software considering the varying factors that affect their pricing. Below are some of the most used software in business and their average cost of subscription;
Customer Relationship Management Software
Customer Relationship Management (CRM) software manages customer and company relationships to improve sales and satisfaction.
There are many types of CRM software based on their usage purpose ― operational, analytical, collaborative, and marketing.
They typically feature a personal contact form, interaction tracking tool, proposal management, and automation capabilities.
On average, an entry-plan subscription for CRM software costs $23 per month. Higher-tier plans cost between $45 and $74, on average.
Meanwhile, some companies offer free plans with limited features or trial periods.
Accounting software is used for tracking an organization’s finance. It helps in calculating income and expenses as well as properly filing taxes.
It is an alternative and cheaper option than hiring an accountant, especially for small business owners.
It typically features billing, invoice, payroll, and inventory management.
Accounting software can cost as low as $15 and as high as $300 or more per month.
Project Management Software
Project management software makes it easy and economical to plan projects. It can allocate tasks, track progress, estimate deadlines, and communicate seamlessly.
Some project management software are designed for overall usage and others for specific industries, such as programs used by residential and commercial construction companies.
These tools are usually charged per user monthly and could cost as little as $8. Those designed for specific industries cost about $49 per user monthly.
Employee Time Tracking Software
Employee time tracing software can efficiently monitor employee time to correctly calculate their wages and work time in compliance with labor laws.
It can give insight into productivity and uncover underutilized capabilities. This software is important for companies with remote employees paid per hour.
There are lots of time tracking software that offers free subscriptions. However, the pricing for premium features is about $3.50 per user.
Human Resources Software
Human Resources (HR) software is used to manage the recruitment and development of an organization’s workforce.
This tool can be multi-purpose or designed for major tasks like recruiting, onboarding, payroll, and performance management.
HR software can cost lesser than $50 per month or hundreds of dollars per user based on its features.
Meanwhile, a business might require building custom software to fits its special needs. The cost of building software in-house range from $15,000 to $250,000 or more. It largely depends on the software complexity and the type of developers hired.
Tips to reduce the cost of business software
The following tips can help you reduce the total cost of software for your business;
Examine your need
There are lots of software out there that you will find useful for your business. You do not need most of them for the seamless operation of your venture.
It is vital you analyze your needs and then select the software applications with the most features for handling them.
Put your future need into consideration while examining your immediate needs. You should be able to export or migrate your data whenever you change the software or upgrade.
Check for overlap
It is not unusual for business software to have overlapping features. For instance, there is software for time tracking, but you will find similar features in HR management software.
Pick the software with the most features for your business operation to reduce expenses significantly.
There are also open-source software alternatives that you can use to substitute for lacking features. They are free to use.
Read testimonials and talk to existing customers
Any deployment of business software will affect both the organization and customers, directly or indirectly.
Before taking the step, read testimonials and case studies to see if existing clients could reduce operating costs after deploying the software.
Reach out to previous customers of the software company to inquire if it is effective for their business operation. They may inform you about a better alternative they are considering due to the shortfall of the software.