Why Your Company May Dump QuickBooks This Year

Jan 6 2014, 11:38am CST | by

Why Your Company May Dump QuickBooks This Year
Photo Credit: Forbes Business

Believe it or not, your company is about to be part of an enormous wave of change in the next few years.

That’s because, if you’re like most small and medium sized businesses, you’re likely using an on-premise accounting application. And most likely that on-premise solution is QuickBooks.  QuickBooks is by far the most popular accounting application for SMBs and deservedly so – it’s full featured, easy to use and well supported by Intuit. My company is an Intuit partner. We sell QuickBooks. But this year we’re going to look into selling other products as well. Why? Because as good as QuickBooks is, I believe that many of my clients are going to dump it starting this year and over the next few years. You too.

That’s because the cloud has caught up to the accounting world. And there are many competitors to QuickBooks standing by to pounce.

My consulting firm serves about 600 active companies. More than 90% of them currently use an on-premise accounting (or financial management or Enterprise Resource Planning/ERP) application. Isn’t it ridiculously obvious that within the next few years just about all of those companies will be using a cloud-based application instead? Of course it is. I’ve watched the enormous growth of software-as-a-service applications for customer relationship management, human resources and payroll. I’ve noticed the faster performance. I’ve witnessed their ease of access from tablets and mini-laptops and even smartphones. I’ve watched companies move more and more of their in-house systems to hosted ones, eliminating their servers and IT infrastructure. And I’ve seen my own clients, small business owners who look at any new relationship or technology with a wary eye, grow more comfortable letting other companies handle their data on managed servers over the past few years. We admit that though no one’s infallible, the security that they provide are better than our own. The environment is perfect for cloud based accounting applications.

And it’s a perfect environment for software developers too. “Most of the large software companies aren’t putting many resources into on-premise solutions any more,” Brian Jacobs, a partner at venture capital firm Emergence Capital told me recently. “They are basically pushing their customers into a software-as-a-service environment.”  This is true. Emergence Capital invests in cloud based business applications and Jacobs believes the market is in its infancy. Ask anyone at Microsoft, Sage, Oracle or SAP and they’ll tell you what the guys at Salesforce.com have been saying for years: the cloud is the future for them. It’s a more profitable and more productive business model for a software company to distribute their products. “There are so many advantages of a cloud solution that I personally don’t see how these on-premise systems can move into the future,” said Rob Reid, CEO of Intacct, an online financial management application. “VCs are not investing in premise software companies any more.”

Which brings me back to QuickBooks. In the next few years it’s inevitable that you’re going to replace your on-premise QuickBooks system for something cloud-based. You won’t have much of a choice. And you’re going to take that opportunity to look around. And you’re going to discover there are some interesting alternatives.

There’s Xero, which just raised $150 million in October. And Intacct, which has received multiple rounds of financing over the past few years. There’s FreshBooks. There’s NetSuite and of course there’s QuickBooks Online. There are others but these, in my opinion, are the big players right now in the cloud accounting/ERP market. To oversimplify, Xero, FreshBooks and QuickBooks Online are arguably geared to the basic bookkeeping/invoicing/bill-paying customer – the startup, the very small micro-business, the mom and pop. Intacct and NetSuite are targeting the next level – those companies that employ controllers or CFOs, are growing, have multiple users and need advanced tools like sales order processing, purchase order, inventory and warehouse management, workflows, automation and more complex reporting for cash flow and consolidations.

These applications have been built from the ground up and support a better, more flexible web-based architecture. Smelling the opportunity, resellers and partners for these products (like me) are popping up everywhere. Migration tools to move away from QuickBooks are available. Deals have been struck to integrate these products with other popular online services and collaboration tools like Dropbox, Zoho, PayPal and Bill.com.

So what will happen? Many current QuickBooks customers (perhaps you?) who are frustrated with the software’s older architecture but have suffered with it because they/you did not feel the need (or were just too lazy) to change will now be forced to change in the next few years. And they/you will be looking at other alternatives. And, for the first time in a long time, there are many great other options to consider. “50% of the customers we are getting are coming from QuickBooks,” Intacct’s Reid told me. “And we’re expecting a tornado wave of activity in the next few years.” The company has experienced a 150% growth in bookings over the past year alone.

So be prepared: maybe this year, but certainly during the next few years you will be part of this enormous trend. That’s a certainty. Will you be one of the many who decide to dump QuickBooks?

Besides Forbes, Gene Marks writes daily for The New York Times and weekly for Inc.com.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Precision Door Service of the Bay Area California Has New Owners
San Jose, CA, April 21, 2014 --(PR.com)-- Congratulations to Pat and Amie Prendergast, the new owners of Precision Door Service of the Bay Area, California. This location originally opened in 2001, and proudly serves...
 
 
Celebrity Hairstylist Julien Farel Debuts First-Of-Its-Kind Power Beauty Menu at Loews Regency Hotel
Celebrity Hairstylist Julien Farel Debuts First-Of-Its-Kind Power Beauty Menu at Loews Regency Hotel
New York, NY, April 21, 2014 --(PR.com)-- Julien Farel, luxury hairstylist and entrepreneur, brings ‘Power Beauty’ to the home of the legendary Power Breakfast. Farel, with over 30 years of experience and...
 
 
Honorable Judge Theodore R. Essex to speak at International Intellectual Property Law Association (IIPLA) Annual Congress 2015
Dubai, United Arab Emirates, April 21, 2014 --(PR.com)-- Administrative Law Judge, United States International Trade Commission, Honorable Theodore R. Essex will speak at International Intellectual Property Law...
 
 
Wealth DNA Radio Show Discusses MyRA’s and GRA’s vs IRA’s and 401(k) plans with Teresa Ghilarducci, PhD on April 28, 2014 at 9:00 AM PDT
Wealth DNA Radio Show Discusses MyRA’s and GRA’s vs IRA’s and 401(k) plans with Teresa Ghilarducci, PhD on April 28, 2014 at 9:00 AM PDT
The Wealth DNA radio show will have Teresa Ghilarducci, PhD as the featured guest on April 28, 2014 at 9:00 AM PDT (12 noon EDT). The show will focus on MyRA's and GRA's vs. IRA's and 401(k) plans.
 
 
 

Latest from the Network

Celebrity Hairstylist Julien Farel Debuts First-Of-Its-Kind Power Beauty Menu at Loews Regency Hotel
New York, NY, April 21, 2014 --(PR.com)-- Julien Farel, luxury hairstylist and entrepreneur, brings &#8216;Power Beauty&#8217; to the home of the legendary Power Breakfast. Farel, with over 30 years of experience and...
Read more on Business Balla
 
Honorable Judge Theodore R. Essex to speak at International Intellectual Property Law Association (IIPLA) Annual Congress 2015
Dubai, United Arab Emirates, April 21, 2014 --(PR.com)-- Administrative Law Judge, United States International Trade Commission, Honorable Theodore R. Essex will speak at International Intellectual Property Law...
Read more on Business Balla
 
Wealth DNA Radio Show Discusses MyRA’s and GRA’s vs IRA’s and 401(k) plans with Teresa Ghilarducci, PhD on April 28, 2014 at 9:00 AM PDT
Phoenix, AZ, April 21, 2014 --(PR.com)-- The MyRA (My Retirement Account) was just announced during the 2014 State of the Union address, as a new vehicle for retirement saving. A key feature is that participants will...
Read more on Politics Balla
 
Wealth DNA Radio Show Discusses MyRA’s and GRA’s vs IRA’s and 401(k) plans with Teresa Ghilarducci, PhD on April 28, 2014 at 9:00 AM PDT
Phoenix, AZ, April 21, 2014 --(PR.com)-- The MyRA (My Retirement Account) was just announced during the 2014 State of the Union address, as a new vehicle for retirement saving. A key feature is that participants will...
Read more on Business Balla
 
Gold Star Mortgage Financial Group, Corporation Names Dan Sugg President
Ann Arbor, MI, April 21, 2014 --(PR.com)-- Gold Star Mortgage Financial Group, Corp, one of the nation&#8217;s premiere mortgage companies, names lending industry veteran Dan Sugg President. Mr. Sugg will be based at...
Read more on Business Balla
 
Pre-Owned Medical Devices Market is Expected to Reach USD 4.9 Billion Globally in 2019: Transparency Market Research
Albany, NY, April 21, 2014 --(PR.com)-- The Pre-Owned Medical Devices Market was valued at USD 2.4 billion in 2012 and is expected to grow at a CAGR of 10.6% from 2013 to 2019, to reach an estimated value of USD 4.9...
Read more on Business Balla
 
CrucialClicks.com, Hires Karina Tama as Social Media Manager
Coral Springs, FL, April 21, 2014 --(PR.com)-- CrucialClicks.com announces the hiring of Karina Tama as Social Media Manager. Karina is responsible for developing, implementing, tracking and optimizing CrucialClicks....
Read more on Business Balla
 
CrucialClicks.com, Hires Karina Tama as Social Media Manager
Coral Springs, FL, April 21, 2014 --(PR.com)-- CrucialClicks.com announces the hiring of Karina Tama as Social Media Manager. Karina is responsible for developing, implementing, tracking and optimizing CrucialClicks....
Read more on Ad Balla
 
Rugknots Launches E-commerce Site, Contributes 2% of All Rug Purchases to Children's Education
Washington, DC, April 21, 2014 --(PR.com)-- RugKnots a leading producer of high-quality handmade oriental designer rugs, has now launched an e-commerce site making their handcrafted designer rugs available to...
Read more on Business Balla
 
Albania Property Group in Helsinki Property Fair on 29 and 30 March 2014
Tirana, Albania, April 21, 2014 --(PR.com)-- During 29 and 30 of March 2014, Albania Property Group participated in the Helsinki property exhibition organized by Fair Media International at the Wanha Satama located at...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla