September 2 Intuit's Outlook is Changing

It’s that time of year again – the annual release of a new QuickBooks software version.  I don’t expect there to be many changes in QuickBooks 2016 that would affect professional practices but let me explain why.

The landscape of Intuit is completely changing.  For the first time ever, Intuit announced last month that Quicken, the personal finance software, is up for sale.  I’ve been using Quicken personally since it was DOS and continue to love its ease of use.  I was very surprised with this announcement but the online version of Mint has been doing well, so they are selling off Quicken.  Demandforce and QuickBase is also up for sale.  

Intuit laid off 5% of their workforce (399 employees) in June and laid off another 249 employees last week in an effort to restructure the remaining business for their “strategic goals.”   Intuit laid off many employees last year as well, and the year before.  It has been an ongoing trend for the past few years.

But, be aware that Intuit is seriously pushing QuickBooks Online even though it continues to be an inferior product to the desktop version.  QuickBooks Online – strategic goal.  QuickBooks Desktop – not so much.  Sadly, it may be the next product to sell but most say not for the next five years.

Why do they want their customers to migrate to online, when the desktop version is so robust?

Revenue.  Intuit makes much more money (as do your accountants) with the online version.  For a $27 per month fee, in two years you could have purchased 3.5 copies of the desktop version.  Most businesses do not purchase a new version but every three years.  Some string it out longer before their version is no longer updated.  So encouraging migration to online, establishes a more consistent and dependable revenue stream.  It's not a bad business decision but the online version is still not up to par with the desktop version.

Feature Rich.  The desktop version is already robust and feature rich.  How does the company keep up to the level of changes that have occurred in the past?  It’s already the sharpest tool in the box!  What could the developers possibly change that would make it incredibly more feature rich?  They've already announced the developers are concentrating on the online version, so, again, I doubt there will be many changes.

How does this affect you?   It will eventually.  Professional practices primary accounting software for accounts payable is QuickBooks desktop version.  Some have migrated to mac, some have migrated to online but the desktop version is still, the most robust version available at this time.  Since they have repurposed the developer's attentions to the online version, I expect the online version will catch up within three to five years.  I also believe Intuit may phase out QuickBooks Pro to QuickBooks Accountants version within three years.

Will I write a QuickBooks Online book?  Good question.  I’ve been pondering that the past couple of weeks and may be closer, only due to market demand but that is still a few years away.  The desktop version is the feature rich product, not the online version.  There will need to be many advancements yet before I switch sides.

In the meantime, QuickBooks 2016’s release is right around the corner!  If you are using 2013, it is time to upgrade.  The Getting The Most Out Of QuickBooks In Your Practice’s publication date is tentatively set for October 31, dependent upon QuickBooks actual release date.  If you need help, call me - let's organize your practice's financial data together so that you can make wiser financial decisions in 2016!

Update note:  Since the first release of this blog, many have stated I'm shooting my business in the foot by keeping you informed.  I hope not because it's my job to keep you informed.  QuickBooks desktop version is still the best version available at this time.  When QuickBooks online is fully matured, I will let you know.