Accounting software's GST bubble turns to hot air

Accounting software's GST bubble turns to hot air

Data from channel research company Inform reveals the magic carpet ride received by accounting software vendors in the lead-up to the Federal Government's July 1 introduction of the GST is over.

Interestingly, the marketshare lead secured by Quicken at the expense of MYOB during the GST-driven sales boom month of June, has held out over July's sales.

According to Inform's Channel Monitoring Service, channel-based sales of business software fell by 58 per cent from June to July.

July's sales of financial software dropped by an alarming 65 per cent, but to demonstrate just how much of an anomalous spike the month of June was, the July sales were only marginally below those of May. Financial software still accounted for 40 per cent of all business software sales in the month, the Inform report said.

Inform is predicting this market share figure will continue to decrease for three months before settling "at around 15 per cent" of overall sales.

According to the Inform research, "Quicken managed to extend its lead over the recently deposed market leader MYOB" in the small business finance sector, where the company had been securing "around 38 per cent" of the market pre-June 30. This figure had "reached 55 per cent in July".

Inform put Quicken's GST-related success down to "managing its inventory" better than MYOB, so it is expecting to see the two dominant and fierce rivals level up in their market shares again as the post-GST sales patterns settle in.

Other points of interest from Inform's July channel software sales research shows that there was also a 58 per cent decrease in productivity software sales, which it also attributed to a GST-based price increase. Demand for antivirus software, which enjoyed a spike in sales from the so-called "Love Bug" scare, also fell off to the tune of 73 per cent.

Meanwhile, creativity software sales had a comparatively good month according to Inform. Its sales only fell by 44 per cent over the previous month, with its overall share of the business software market moving from 21 to 28 per cent.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.


ARN Innovation Awards 2022

Innovation Awards is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in Australia.

EDGE 2022

EDGE is the leading technology conference for business leaders in Australia and New Zealand, built on the foundations of collaboration, education and advancement.

Show Comments