--- title: "Paying for Software: What Are Your Options? | BCS ProSoft" description: When companies are making a software purchase, especially for a new business management system, business professionals often face choices on how they can pay for the software, either through perpetual or subscription pricing. While the […] image: https://blog.bcsprosoft.com/hubfs/Imported_Blog_Media/computers-desk.jpg --- Questions? Give us a a call at [**(855) 982-9336**](https://www.bcsprosoft.com/contact/) - [Facebook](https://www.facebook.com/bcsprosoft) - [Linkedin](https://www.linkedin.com/company/bcs-prosoft) - [Twitter](https://twitter.com/bcsprosoft) - [Email](https://www.bcsprosoft.com/contact/) [![BCS-logo-white-red-2](https://blog.bcsprosoft.com/hs-fs/hubfs/BCS-logo-white-red-2.png?width=700&name=BCS-logo-white-red-2.png)](https://www.bcsprosoft.com/) - Products - Deltek - [Deltek](https://www.bcsprosoft.com/deltek/) - [Deltek Vantagepoint](https://www.bcsprosoft.com/deltek/vantagepoint/) - [Deltek Cloud](https://www.bcsprosoft.com/deltek/cloud/) - [Deltek PIM](https://www.bcsprosoft.com/deltek/pim/) - [Deltek CRM](https://www.bcsprosoft.com/deltek/crm/) - Sage - [Sage Intacct](https://bcsprosoft.com/sage-intacct/) - [Sage 100cloud](https://www.bcsprosoft.com/sage-100/cloud/) - [Sage CRM](https://www.bcsprosoft.com/sage-crm/) - [Sage HRMS](https://www.bcsprosoft.com/sage-hrms/) - [NetSuite](https://www.bcsprosoft.com/netsuite/) - [Automated Rental (ARM)](https://www.armsoftware.com/?utm_source=bcsprosoft.com&utm_medium=referral) - [Services](https://www.bcsprosoft.com/services/) - Resources - Blog - [Deltek Blog](https://blog.bcsprosoft.com/tag/deltek/) - [Sage Blog](https://blog.bcsprosoft.com/tag/sage) - [NetSuite Blog](https://blog.bcsprosoft.com/tag/netsuite) - Whitepapers - [Deltek Whitepapers](https://www.bcsprosoft.com/resources/deltek-whitepapers/) - [Sage Whitepapers](https://www.bcsprosoft.com/resources/sage-whitepapers/) - [NetSuite Whitepapers](https://www.bcsprosoft.com/resources/netsuite-whitepapers/) - Product Guides - [Deltek Product Guides](https://www.bcsprosoft.com/resources/deltek-product-guides/) - [Sage Product Guides](https://www.bcsprosoft.com/resources/sage-product-guides/) - [NetSuite Product Guides](https://www.bcsprosoft.com/resources/netsuite-product-guides/) - Webinars - [Deltek Webinars](https://www.bcsprosoft.com/resources/deltek-webinars/) - [Sage Webinars](https://www.bcsprosoft.com/resources/sage-webinars/) - [NetSuite Webinars](https://www.bcsprosoft.com/resources/netsuite-webinars/) - Company - [About Us](https://www.bcsprosoft.com/about/) - [Industries](https://www.bcsprosoft.com/industries/) - [Events](https://www.bcsprosoft.com/events/) - [Careers](https://www.bcsprosoft.com/careers/) - [Support](https://www.bcsprosoft.com/support/) - [Referral Program](https://www.bcsprosoft.com/bcs-referral/) - [Contact Us](https://www.bcsprosoft.com/contact/) ![computers-desk](https://blog.bcsprosoft.com/hubfs/Imported_Blog_Media/computers-desk.jpg "computers-desk") # Paying for Software: What Are Your Options? By [Taylor Wise](https://blog.bcsprosoft.com/author/taylor-wise) | Jun 5th, 18 | Categories: [Pending Update](https://blog.bcsprosoft.com/tag/pending-update) When companies are making a software purchase, especially for a new business management system, business professionals often face choices on how they can pay for the software, either through perpetual or subscription pricing. While the former requires an initial up-front payment, the latter allows organizations to pay as they go. The decision can be confusing and has implications on a business’s budget in terms of both capital and operational expenditures. Let’s take a closer look at these two different options, so your company leaders can make an informed decision. ## Advantages and Disadvantages of Perpetual vs. Subscription One of the most important aspects of choosing a new business management system is making sure the software fits into the company’s budget. Although features should be a crucial aspect of the selection, too many businesses look at price to make their final decision. Paying on a subscription basis will usually amount to 20 to 30 percent of the cost of a perpetual license over the course of a year, according to Software Advice. Although maintenance and support are often included in subscription plans, paying by subscription can cost more over time than a perpetual license. Business professionals must decide between subscription with a lower up-front cost with recurring fees or perpetual with a higher up-front cost and recurring fees. For many companies, a shift to paying by subscription can provide more benefits than just flexibility and lower initial costs. On-premises software purchased on a perpetual license must be depreciated over 36 months, or over five years if purchased with new hardware. Meanwhile, subscription-based software is deductible as incurred or paid, according to Cordasco & Company, a personal accounting firm, since it is leased or licensed. For your company, this means depreciating more of the cost of the software in the short term, which benefits a company’s financial bottom line. ## CapEx versus OpEx Depending on what type of software your company selects, you can make an immediate impact on your budget and financial position. Subscription services tend to be more attractive to organizations whose success is measured by return on assets deployed, according to CFO. This shift toward operational expenses makes paying by subscription more attractive. Companies that are not interested in decreasing their fixed assets are more likely to stay with perpetual licenses, leaving their focus on capital expenses in their overall budget. ## How can BCS ProSoft help? Software purchases can be difficult, especially with so many different combinations of features and prices on the market today. With its broad portfolio of both on-premises and cloud-based business management solutions as well as the choice of perpetual and subscription offerings, BCS ProSoft can help your company make the right decision for your specific business. For more information, please contact us at 800-882-6705. #### Share this post with a friend or coworker! - - - - [mailto:?subject=Paying%20for%20Software:%20What%20Are%20Your%20Options?&body=https://blog.bcsprosoft.com/benefits-of-subscription](mailto:?subject=Paying%20for%20Software:%20What%20Are%20Your%20Options?&body=https://blog.bcsprosoft.com/benefits-of-subscription) ### Related posts ![Extend the Functionality of Your Sage Intacct Solution: Learn More at Wednesday Wisdom](https://blog.bcsprosoft.com/hs-fs/hubfs/Imported_Blog_Media/SI-Wed-Wisdom.jpg?width=200&name=SI-Wed-Wisdom.jpg) [Extend the Functionality of Your Sage Intacct Solution: Learn More at Wednesday Wisdom](https://blog.bcsprosoft.com/extend-the-functionality-of-your-sage-intacct-solution-learn-more-at-wednesday-wisdom) Mar 24th, 21 [Services Sales Tax Spreads Through States](https://blog.bcsprosoft.com/services-sales-tax-spreads-states) Feb 8th, 21 ![The Best Thing about Sage Intacct Budgeting and Planning? Saying “Goodbye” to Spreadsheet Headaches and Busy Work!](https://blog.bcsprosoft.com/hs-fs/hubfs/Imported_Blog_Media/SI-BP-Blog-Header.jpg?width=200&name=SI-BP-Blog-Header.jpg) [The Best Thing about Sage Intacct Budgeting and Planning? Saying “Goodbye” to Spreadsheet Headaches and Busy Work!](https://blog.bcsprosoft.com/sage-intacct-budgeting-planning-series) Nov 19th, 20 ![Survey Results, Expert Speakers, and Industry Insights – Sage Intacct Hospitality Hangout Has It All](https://blog.bcsprosoft.com/hs-fs/hubfs/Imported_Blog_Media/Hospitality-Hangout.png?width=200&name=Hospitality-Hangout.png) [Survey Results, Expert Speakers, and Industry Insights – Sage Intacct Hospitality Hangout Has It All](https://blog.bcsprosoft.com/hospitality-hangout) Sep 17th, 20 ![The Sage Intacct Healthcare Hangout is Back!](https://blog.bcsprosoft.com/hs-fs/hubfs/Imported_Blog_Media/SI-Healthcare-Hangout-2.png?width=200&name=SI-Healthcare-Hangout-2.png) [The Sage Intacct Healthcare Hangout is Back!](https://blog.bcsprosoft.com/healthcare-hangout-2) Sep 15th, 20 ![Hurricane Laura – Is Your Business Prepared?](https://blog.bcsprosoft.com/hs-fs/hubfs/Imported_Blog_Media/hur-laura-25aug20-8a.jpg?width=200&name=hur-laura-25aug20-8a.jpg) [Hurricane Laura – Is Your Business Prepared?](https://blog.bcsprosoft.com/hurricane-laura-is-your-business-prepared) Aug 26th, 20 This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### Recent Posts ### Who is BCS ProSoft? We’re a business technology provider and consulting firm specializing in NetSuite, Deltek and Sage software systems. We’re a Top 30 VAR and ready to get started on your project. Need help? [Let’s talk.](https://www.bcsprosoft.com/contact/) ![BCS-logo-white-red-2](https://blog.bcsprosoft.com/hs-fs/hubfs/BCS-logo-white-red-2.png?width=211&name=BCS-logo-white-red-2.png) BCS ProSoft is a leading business management technology provider and professional services firm specializing in Sage, Deltek, and NetSuite ERP systems. Based out of San Antonio, Texas, BCS ProSoft serves more than 1,500 clients from its offices in Houston, Denver, Honolulu, and Monterrey, Mexico. ### **Products** - [Deltek](https://www.bcsprosoft.com/deltek/) - [Sage Intacct](https://www.bcsprosoft.com/sage-intacct-overiew/) - [Sage 100](https://www.bcsprosoft.com/sage-100/cloud/) - [NetSuite](https://www.bcsprosoft.com/netsuite/) - [Automated Rental (ARM)](https://www.armsoftware.com/) ### **Company** - [About Us](https://www.bcsprosoft.com/about/) - [Industries](https://www.bcsprosoft.com/industries/) - [Events](https://www.bcsprosoft.com/events/calendar/) - [Careers](https://www.bcsprosoft.com/careers/) - [Support](https://www.bcsprosoft.com/support/) - [Referral Program](https://www.bcsprosoft.com/resource/bcs-referral/) © Copyright 2008-2021, BCS ProSoft, LLC. All rights reserved. | [Legal](https://www.bcsprosoft.com/legal) | [Privacy Policy](https://www.bcsprosoft.com/privacy/) - [Facebook](https://www.facebook.com/bcsprosoft) - [Linkedin](https://www.linkedin.com/company/bcs-prosoft) - [Twitter](https://twitter.com/bcsprosoft) - [Email](https://www.bcsprosoft.com/contact/)