Offer valid for new customers only, for a limited time, and is not available with QuickBooks Self-Employed or any other QuickBooks Online or Payroll offers. To cancel your subscription, call 866-272-8734 x111. Feb 9, 2017 - Working in the Cloud: QuickBooks desktop is, obviously, a “desktop” product. Once they have you on subscription (for Desktop Software).
I was a former senior manager at KPMG and since 1994 the owner of the Marks Group PC, a 10-person customer relationship management consulting firm based outside Philadelphia. I've written six small-business management books, most recently 'The Manufacturer's Book of Lists' and “In God We Trust, Everyone Else Pays Cash: Simple Lessons From Smart Business People.” Besides Forbes, I formerly wrote for The Washington Post and the New York Times and now write regularly for The Guardian, The Philadelphia Inquirer, Inc., Magazine, Entrepreneur Magazine and Fox Business. I make no compensation from the number of people who read what I write. The author is a Forbes contributor. The opinions expressed are those of the writer. Once upon a time, not very long ago, it was a different experience buying software.
Take QuickBooks, the popular small business accounting system, for example. Back in the day, you would go to the office supply store, or order the software online and it would be delivered to you in a box. You would install the software on your desktop computer or on your server.
Maybe you’d need some assistance. Sometimes you’d ask for training. But other than that the software was up and running. You can still do that today, if you want. You could purchase QuickBooks Premier for about $300 and install it on just about any Windows 7 or 8 machine. But that’s getting tougher and tougher to do. Like Intuit’s other desktop products, QuickBooks Premier is now all the of the products page, overshadowed by its QuickBooks Online offerings.
IMAGE DISTRIBUTED FOR QUICKBOOKS – Heather Mclellan and Al Ko from Intuit QuickBooks deliver the Main Stage keynote spotlighting the Intuit Bold Commitment to local Boulder small business owners during the QuickBooks Connect Boulder event at the Boulder Theater on Thursday, May 21, 2015 in Boulder, Colo. #QBConnect (Photo by Jack Dempsey/Invision for QuickBooks/AP Images) Can you blame Intuit?
Of course not. QuickBooks is a fine product and Intuit is a fine company.
Intuit is no different than any other large software manufacturer intent on growing profits. It’s pushing the cloud to its customers.
And small businesses, like it or not, are definitely migrating to the cloud. Steve King, a partner at Emergent Research, which tracks technology use by small firms “almost 37% of small businesses are ‘fully adapted’ to cloud-based applications.” He expects that to increase to 78% of small businesses by 2020. There are certainly sound reasons why so many small businesses can benefit from the cloud. It relieves us of the burden of maintaining a network or an IT guy, we’re told. Cloud applications allow us to access our data now from anywhere, using just about any mobile device. Cloud applications are easier to setup and get operational.
Support for the software can be offered more economically because everything’s being maintained by the manufacturer. Security is better. Integration with other cloud based applications is easier. And, we’re told, monthly software payments help us with our cash flow. But that’s not the real reason why so many small businesses are moving to cloud based applications.
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The real reason is also the worst-kept secret about the cloud: software companies like Intuit make lots more money from cloud applications. And they’re making it at the expense of their customers.
You, me, my clients. In the long term, cloud applications are significantly more expensive for small businesses. A monthly subscription for QuickBooks Online Essentials (the most popular choice, according to Intuit) lists for $26.95 per month. The application compares closely to the $300 version of QuickBooks Premier.
Doing the math? In just one year you’re paying $323 for QuickBooks Online Essentials.
That’s every year. Compared to the one-time $300 payment you would’ve made for QuickBooks Premier. But the cost benefits of the cloud significantly outweigh these costs, right? Using my firm’s 600+ clients as a basis, I’m not so sure.
Even with cloud applications, all of my clients still need IT support because they still have desktops, servers, routers and networks and will likely have this type of infrastructure for the foreseeable future. They all use applications like remote desktop, Citrix, GoToMyPC, LogMeIn or other similar products which gives them access to their network from any device they choose. Installing QuickBooks Premier desktop has never really been a problem and support was never much of an issue because the application works pretty darn well – most of my clients didn’t even purchase support plans from Intuit because they weren’t using them. And most of them wouldn’t upgrade for years because it wasn’t really necessary. I agree that security is better – I’d trust Intuit’s security team to any IT guy supporting my small business clients.
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