Sage has axed 30 resellers in a bid to encourage more commitment from its remaining resellers.
The accounting software vendor has undergone a "clean-out" of its channel, according to managing director John Marshall. The move takes Sage's reseller count from around 150 to 120 across the country.
Sage follows a Gold, Silver and Bronze-tiered channel structure. Marshall said there had always been tough criteria for resellers to become partners, such as bookkeeping skills and demonstrable integration experience.
The difference now is that Sage has gotten harder on resellers who sell other accounting packages. "People can't support multiple brands because of the technical changes [across various software packages]," he said. "With accounting software you have to be committed to a single vendor."
Marshall said the market has changed since the introduction of the GST, and it is only now, over a year later, that accountants and the Tax Office are beginning to discover where "things aren't being done right".
It's a trend that Marshall claims has happened in other regions, like the UK, where a GST and Value Added Tax (VAT) have been around for some time. He argues that the European-based Sage has developed its products in accordance with these types of taxation principles for longer than its competition.
"It's the difference between software that is new and software that has been around for some time," he said.
Despite the fact the majority of Australian companies have already migrated or updated to accounting software that is GST-compliant, Marshall is convinced people will rip and replace systems in favour of Sage packages. "They can't afford not to," he claimed.