Why Knowing Your Software’s Renewal Date Matters

In recent years, we’ve noticed a troubling trend among accounting and tax software providers: the imposition of a 90-day notice period before renewal, effectively locking customers into their products.  

At Capium, we empathise with the stress and burden this place on accountancy practices and businesses, which is precisely why we’ve chosen not to enforce such notice periods in our contracts. 

These extended notice periods often come hand in hand with steep price hikes. We’ve heard stories of accountancy practices facing sudden annual increases of up to 10% after missing the 90-day notice deadline. Such scenarios leave businesses with little choice but to incur significant costs or remain locked into contracts that no longer serve them. 

This situation not only hampers business agility but also stifles long-term growth. Many customers of other accounting and tax software providers have voiced their frustration with the stringent measures imposed by their current providers, hindering rather than facilitating their success. 

But at Capium, we understand that small and medium-sized accountancy practices and businesses require flexibility to thrive in today’s dynamic environment. They need software that adapts seamlessly to their evolving needs without penalising their progress. That’s why we are committed to offering flexible contracts with transparent pricing. Our customers consistently attest to the excellent value for money they receive. 

Here are six tips to avoid being caught off guard by 90-day notice period clauses: 

1. Know Your Renewal Date: Familiarise yourself with your software’s annual renewal date. Whether you pay monthly, quarterly, or annually, each product may have a different renewal date. 
2. Understand Your Notice Period: Review your contract to determine the notice period assigned to you. 
3. Give Ample Notice: If you intend to terminate your contract, notify your provider at least one month before your notice period ends. Some providers may delay responding to termination requests, so give yourself plenty of time and keep records of all correspondence. 
4. Be Aware of Price Increases: Stay informed about when your software provider typically raises prices and how this aligns with your notice period. Avoid being caught off guard by sudden price hikes. 
5. Avoid Automatic Renewals: Resist signing up for automatic renewal pricing whenever possible. Understand what the provider intends to charge after any introductory discounts expire. 
6. Shop Around: Take the time to explore alternative software providers well in advance of your contract’s notice period. Evaluate various factors beyond price, such as training, support, and add-ons, to make an informed decision. 

While you may not be able to alter the terms of your current software provider, being aware of your renewal date empowers you to navigate contracts effectively. Mark it on your calendar, explore your options, and don’t hesitate to assert your preferences with your provider.

If you’re concerned about the impact of your current provider’s contract on your business, reach out to the team at Capium for assistance on 020 3322 5578 or email us at info@capium.com. To learn more about Capium, book your demo today.