Basic SME software dominated by Intuit, Microsoft and Sage

The top three suppliers of accounting software used by small and medium-sized enterprises (SMEs) sound familiar - Intuit, Microsoft and Sage, according to the latest figures from Yankee Group.

The analyst house includes enterprise resource planning (ERP) software - for functions such as managing payrolls, HR or manufacturing systems - in its ranking.

Microsoft had a strong 2005, entering the low-end accounting applications arena, where Intuit and the UK's Sage are well known.

On-demand software has also been a growing trend. All three vendors have an on-demand option and Yankee Group says application suites from the likes of NetSuite, known for this type of software provision, and SAP, one of the largest software providers to larger user organisations, have also been gaining traction among SMEs.

Breaking down the Yankee figures further, its researchers place Intuit in the lead followed by Sage in the market for accounting software to organisations with two to 99 staff. Meanwhile in the 100- to 999-employee market, Microsoft leads with Oracle and Sage in second and third places.

Many SMEs still employ no specialist ERP or even accounting software, meaning it's a growth sector.