Tag: quickbooks hosting

Posted on

Cloud Computing for Small Business: It’s All About 3 Apps

Every business uses technology at some level, and every business has certain fundamental needs which are most frequently met through the use of computing technology.  Regardless of business type or size and independent of industry orientation, there are 3 fundamental things which every business does which means that there are 3 fundamental application types or solutions which every business will buy at some point.  These 3 application types, which could be distilled down to just “applications”, have become so broadly used in business and so widely recognized as the standards that their names are often used instead of the term representing the functionality they provide.  When it comes to cloud computing for small business, it’s all about these 3 applications.

In what are now referred to as “legacy” or “traditional” models, these products would generally be purchased as software and associated hardware to run it, and would be installed and managed on the local premises.  With cloud computing models, the solutions may be purchased or subscribed as managed infrastructure and application licenses, or as a full service subscription (SaaS).  Regardless of the service model, the applications are the key to the customer win.  While cloud computing may be challenging how IT products and services are sold and delivered to customers, it is not fully impacting which solutions customers are actually looking for.  Over the past 16 years this has been the reality, and it may take another decade before these products are unseated from their top positions simply due to the inertia of the installed bases they’ve already developed.  Service providers have found (or will find) a way to deliver these applications in cloud computing style, or small businesses will simply not move everything to the cloud very quickly.  It is really just that simple, and I’ll explain why.

QuickBooks-Hosting-WordCloudThe three things that each and every business does, and which they generally purchase computers and software to facilitate, are communicating, producing information, and keeping score.

1. Communicating is an essential need for every business.  Whether it is communication via phone, fax, email or otherwise, businesses will communicate and they will purchase products which help them do it better.  The standard for business email communications has become Microsoft Exchange, which is now available as a highly affordable subscription service from Microsoft or from a wide variety of commercial MS Exchange hosting providers.  Certainly the popularity and growth of hosted Exchange supports the argument that not only is MS Exchange mail very widely used in businesses of all sizes, but that it is also highly acceptable as a hosted solution because users retain desired functionality and are able to benefit from a variety of add-ons and additional services from their hosted Exchange email provider.  The other thing about hosted Exchange is that the user can still use MS Outlook on their desktop to get their mail.  Now we’re back to the desktop application again.  Regardless of what mail server and service the user has, they are often more attached to using Outlook than they are to the mail service.  In fact, when you ask a fairly non-technical user what they use for email, they’ll often say they use Outlook (the desktop client, not Outlook.com).

2. Producing Information is another essential need for every business.  Whether the information is produced for internal or external use, there is a lot of information created to inform various people about the business.  Documents, spreadsheets and presentations are used in every business, and productivity applications help people create them.  The standard in this area is Microsoft’s Office suite of products which includes Word, Excel and Powerpoint.  It isn’t unusual to have someone suggest “making a powerpoint to get the message across”, rather than using the word “presentation”, and does anyone expect to get a document not in .doc format?  When users ask for productivity products, they usually ask for Office software and they usually mean Microsoft Office suite products.

The broad use and proven suitability of these products has well established them as the standards for use in business.  While these applications are now available as limited-functionality web-based applications, most businesses continue to rely on the desktop products which resulted in myriad file sharing and “collaboration” tools which work with the Office products.  Microsoft recognized the value of having the feature-rich productivity applications available in hosted and managed service models (as hosted applications rather than true web-based apps), and made the products available for licensing and distribution via their Service Provider License Agreement (SPLA). Microsoft (direct and via partners) also offers Office 365, which provides licensing for Office desktop applications and/or hosted Exchange email services.

Hosts with cloud servers and managed infrastructure and VDI solutions are all facing this truth: their services are useful when there are applications running on them, and among the most frequently requested applications are the Office apps.  This is why so many providers offer not only cloud servers and virtual desktop solutions, they add value to their service by also offering the Microsoft Office products.  At least in the case of MS Office, service providers have recognized that certain fundamental applications must be present in order for the server or desktop to have value for the SMB customer.  After all, “moving the server to the cloud” doesn’t solve the problem if all the apps remain on the local PCs.

And then we come to the final application – the last fundamental small business application for service providers to focus on.  It is with this application that hosting companies will make real impact in moving their small business customers from local to hosted applications, virtual desktops, and the world of cloud servers and managed hosting.

3. Keeping score, or accounting, is the final absolute and fundamental business function which exists in every business regardless of size, type or industry.  This is another area where service providers are focusing, realizing that within the realm of small business accounting there is a single standard product line which serves the exact profile of the target SMB/SME customer: Intuit QuickBooks desktop products.

When challenged to find a single application solution which addresses a fundamental business need, is not oriented towards a particular industry segment, and which is likely to drive increased usage simply due to existing market penetration and sales – there is only one name that answers, and it is QuickBooks, most specifically the Pro, Premier and Enterprise desktop editions.

Looking further into the problem reveals that there may be more options for small business accounting emerging in the SaaS market, but this doesn’t help the hosting companies looking to increase usage on their own platforms.  Additionally, while new and emerging solutions may be introducing options for very small business, the activity actually serves to increase awareness of and usage of computerized accounting solutions, resulting in increased share of the market looking for and purchasing these solutions – increasing the overall market for SMB accounting products and providing an opportunity to sell QuickBooks solutions to those new users. Further, Intuit QuickBooks remains the dominant choice once the business has needs beyond simple invoicing and bill payment, and continues to see growth in product sales and distribution for this reason.

It’s also true that, once a business has itself “invested” in an accounting product, change is not something considered easily.  In many (most?) cases, the business is more closely tied to their financial systems than they are to their service provider.  If the provider can’t work with the software, the business is likely to seek services from another provider.

Moving everything but finance to the cloud is not an option for most businesses, either. Particularly with small business/small enterprise, there are generally systems which serve a broad business need and not a single function.  QuickBooks is not just a back-office accounting product.  It also provides some front-office functionality, such as storing general customer information, handling invoicing, inventory management, job costing and other functions.  It is essential that service providers not minimize the importance of this solution in their target client operation.

The financial system is not an island and is often integrated with or connected to other applications and data.  Even though the QuickBooks desktop products are designed to suit businesses up to 250 employees, it is unlikely that a business will have all 250 people running QuickBooks.  Rather, the product may be used by 2 or 3 people in the accounting department, or possibly by up to 30+ users in an Enterprise deployment where the product serves more operationally oriented functions.  The rest of the company is likely using MS Office and email as suggested earlier, and perhaps some other operational or business specific product which may integrate with QuickBooks.  The point is that it’s unwise for service providers to minimize the importance of the financial software and systems, even if those solutions are used by only a very few of the total number of users within the organization. 

More evidence suggesting that the name QuickBooks has become almost synonymous with  small business bookkeeping is visible within the accounting and bookkeeping industry, where bookkeeper training programs focus as much on the QuickBooks product (if not more so) than on actual accounting fundamentals.  Businesses hiring bookkeepers don’t ask for bookkeeping experience, they ask for QuickBooks experience.  If a small business owner asks his accountant what product to use, it’s a good bet that the accountant will recommend, and possibly even set up, QuickBooks for the client.  There is momentum there which cannot be argued with, and it represents significant opportunity for those who have platforms to run the stuff.  Weirdly, QuickBooks desktop editions and other desktop-based financial products available in a cloud hosted model represent a last and final element which is driving broad adoption of cloud servers and hosted desktops within the SMB markets.

It is all about the apps, but not just any apps.  It’s about the apps small businesses need, want, know, and currently use.  Service providers who can offer their customers these applications as cloud service – as managed applications on a cloud server or VDI platform – are in a position to serve the broadest base of SMB/SME customers. Talk about addressable market… at that point, it becomes a simple function of exposure as the value proposition is undeniable (and barrier-free).

Joanie Mann Bunny FeetMake Sense?

J

Posted on

The Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud

cloud-computingWhen Intuit created the Authorized Commercial Host for QuickBooks program, a variety of providers were enabled to offer not only managed application hosting services for QuickBooks desktop products, they were also permitted to provide QuickBooks desktop product licenses for rent.  By allowing these hosting providers to also license the QuickBooks products on a subscription basis, the entire solution – the hosting of the QuickBooks, the management of the company data files, and the licensing of the software – was able to be packaged together and offered as an equivalent of the SaaS solution.  The benefits of running tried-and-true business applications on the business network had already been proven, and creating the ability to access this resource at any time and from anywhere (mobility!) became the feature which encouraged a wide variety of large and small business to move to “cloud” and online working models.

While the complete hosted application model – where the business desktop applications and associated data are installed and managed on the service provider servers – addresses a broad requirement for many companies, there remains a large community of users who have needs which do not extend to “cloud server” or remotely hosted desktops and complete managed application services.  For these users, having access to the data file from anywhere is the primary goal (maybe even multi-user access for just a couple of users), and management of the software and license across multiple computers is not their first consideration.

Here are the most popular models for working with QuickBooks desktop editions in/with the cloud.  Each of these approaches solves a different business problem, so it is important to understand which problems need to be solved before shopping for the solution.

1. Storing the QuickBooks file in a file sync solution

Solves: gives access to the data file from various locations (not at the same time)

Doesn’t solve: no multi-user access in real time, still have to purchase QuickBooks licenses, install and manage applications, and secure and backup data

The popularity of Dropbox and similar file sync solutions clearly demonstrates the value of giving users the ability to store, sync and share files securely via the Web.  Further, these services allow people at different locations to access files in a relatively collaborative manner, giving otherwise disconnected users the ability to sort of work like they’re on the same network and using the files in near-realtime.  While this approach works awesomely well for Word documents, PDFs and other files, it doesn’t work as well for QuickBooks company data files.  It’s pretty much an automated approach to using a file storage solution (like any web drive, file share service or such). To clarify, users can store copies of QuickBooks company files in a Dropbox or sync folder to have that file sync’d to the host and to other permitted computers, but a “live” QuickBooks data file doesn’t like living in this type of folder.  The sync or file sharing method of applying a cloud solution to QuickBooks allows for only one person to be in the “real” file at a time, and each user still has to purchase, install and manage the QuickBooks software on their PC.  Oh, and bandwidth will become an issue when files must be sync’d frequently and when the files are fairly large (which QB files tend to be).

2. Using secure remote access to QuickBooks, remote desktop or remote app solution (like hosting, but the host just happens to be an on-premises computer already in place)

Solves: gives access to the file and applications from various locations, allows for multi-user access to company file, allows access to just QuickBooks or any combination of applications on the host computer; low-cost solution providing mobility and device independence just like commercial hosting but at a fraction of the cost

Doesn’t solve: have to purchase QuickBooks licenses, install and manage applications on the host, and backup data

Secure remote access solutions like MyQuickCloud allow users to connect to applications that are installed on existing workstations or servers. This approach provides users with access to QuickBooks and other software installed on the in-house computer.  The problem with this model is that the bandwidth and the in-house computer need to be sufficient to support remote users, and the activities of the user sitting at the in-house computer will take priority over the remote user requests.

3. Using a hosting provider and/or platforms for QuickBooks, remote desktop or remote app type of solution

Solves: gives access to the file and applications from various locations, allows for multi-user access to company file, may allow for rental licensing of QuickBooks software, files are backed up by service provider

Doesn’t solve: commercial hosting is not a very low-cost solution for those who only need file sharing

Application hosting models allow users to connect to servers where the applications are installed and managed by the service provider and delivered to customers as subscription service.  This approach provides customers with flexible options for accessing QuickBooks software installed and maintained on the host’s servers, and to have the multi-user capabilities of the product just as it would function on a local network. Application hosting models are generally offered as standardized service or as custom service, with variable pricing and features associated with each.

Because these hosting models require that all components of the delivery be combined to deliver the service – from networks to servers to desktop virtualization to application virtualization, application licensing, data management… it’s a big list of things – the cost of service may seem a bit high for a single user or very small business to bear.  This is among the reasons for continued popularity of do-it-yourself remote access solutions that deliver mobility but fail to address any sort of system management benefit.

When business users ask about using their QuickBooks desktop editions in the cloud, it makes sense to drill down into the details of what they’re really looking for.  In many cases, the QB user simply doesn’t know how to ask for what they want, using popular terms without real understanding of what they mean.  This is something which frequently happens when a prospective customer contacts a QuickBooks hosting provider, and the sales department of the hosting provider isn’t generally in a position to offer consultation – they are there to sell their solution to the prospect.  The result is that the customer doesn’t really get what they want, and the provider gets a bad review.

The problem isn’t necessarily with the provider or service (I wish more sales teams were able to offer more consultative approaches, but that’s an entirely different conversation); the problem occurs largely due to the variety of services being offered around “cloud QuickBooks” and the ambiguity which exists in much of the marketing language around them.  Maybe this information will help businesses as they look to find solutions to the variety of problems with “enabling” their desktop QuickBooks to work with the cloud.

Joanie Mann Bunny FeetMake Sense?

J

 

Posted on

Hosted QuickBooks Need Drives Hosted QuickBooks Approach: QuickBooks Desktop Editions in the Cloud

Intuit QuickBooks essentially “owns” the accounting/bookkeeping software market in the US, having an enormous share of distribution and millions of users.  Even with the emergence of new web-based and SaaS solutions designed to address the needs of small business bookkeeping, the visibility and momentum of the QuickBooks brand has kept it in the lead position and users continue to adopt the QuickBooks desktop and online editions in record numbers.  What may be a surprise to folks who believe “the desktop is dead” is the reality that quite a lot of the adoption and usage continues to be centered on the QuickBooks desktop edition products rather than the purely Online, SaaS product, and this is at least in some part supported by the hosted QuickBooks service model.

The desktop is dead. Long live the desktop!

Software-as-a-Service and “the cloud” have become the focus of the entire information technology industry, and this new paradigm of computing continues to evolve and reveal potential at every level.  What’s interesting is that the paradigm – which involves mobility, anytime/anywhere access, managed service delivered as a utility subscription, and more –  is bringing new life to what many have come to refer to as “legacy” applications (like QuickBooks desktop editions).  While many technologists would have us believe that the traditional desktop is dead, the reality is that the traditional part of it is all that may be dying… the desktop and what it offers and represents isn’t dead at all.  In fact, it’s very much alive and well and continuing to do what it was intended to do, perhaps a bit better, due largely to advancements in desktop and application virtualization and other discoveries.

Several years ago the Application Service Provider model established itself, positioned to provide hosting of business applications as a subscription service (“several” is somewhat of an understatement; the first real ASPs emerged around 2000-ish).  Using Windows Terminal Services and other tools, these early providers recognized the benefits of hosted and managed desktops, and further recognized that the value of the service existed largely with the applications and not simply the outsourced desktop.  Back then, there was an awful lot of talk about how the “desktop is dead”, because delivered applications would become the norm.  Then the dotcoms busted and a lot of ASPs went out of business, leaving a rather poor taste in the mouths of consumers and independent software vendors (ISVs) alike.

As web-based, SaaS and “cloud” solutions began to emerge and prove their viability, business users returned to the web in search of solutions to mobility and secure remote access to business applications and data.  While a great deal of success has been realized by many of these SaaS solution providers, there has remained a significant need and desire for desktop applications, desktop presentation, and desktop functionality.  The adoption by the market of SaaS and cloud services eased the adoption of hosted application services, as well, and now there are a wide variety of providers offering an equally wide variety of hosted and virtualized desktop and application services (application services like hosted QuickBooks, for example).

The popularity of the QuickBooks desktop products, coupled with new capability offered through advancements in hosting and application delivery solutions, directly address the desire of the market to eliminate complexity and reduce cost of IT operations.   Hosting is somewhat of an “equalizer” between QuickBooks desktop and QuickBooks Online, allowing the QuickBooks desktop users to have the same managed subscription service as Online Edition users, but with the rich features and full functionality present in the desktop editions.  Businesses wanting to run QuickBooks in the Cloud are not forced to transition to the product which may not fully meet their needs, or which is simply unfamiliar to them – they can continue to utilize their trusted QuickBooks desktop editions, only in a hosted/delivered environment.

Here’s the catch:  It’s a good idea to only work with an Intuit-authorized Commercial Host for QuickBooks, because there is no other lawful way to obtain QuickBooks hosting services from a service or solution provider.  No, it is not lawful to provide QuickBooks hosting services unless the hosting provider/service is actually authorized by Intuit to do so, and anybody using QuickBooks software has already agreed that they will not utilize the software with a hosting provider or similar entity without specific authorization.  The hosting provider risks being targeted for unauthorized software distribution, and the customer risks losing their right to the software and services by violating the EULA terms.  Even if the software doesn’t cost a lot, businesses will recognize that their business data has value, and keeping their software in a usable and properly licensed state is necessary to preserve the value of that data.

The End User License Agreement for QuickBooks products – an agreement between Intuit and the consumer – spells it out in plain language and describes specifically how the QuickBooks product is NOT eligible to be hosted, or provided by a hosting service. Note that this includes situations where the hosting company is providing the actual QuickBooks software, and in situations where a business already has their QuickBooks software and provides it to a commercial hosting company to have it installed and managed and provided to users.  In short – QuickBooks is not supposed to be installed and managed by a 3rd party hosting provider who is not authorized by Intuit as a commercial host for QuickBooks regardless of whether or not the customer provided the license.

Further, by accepting the EULA in order to use the QuickBooks product, users accept the fact that Intuit has the full right to terminate that license in the event that terms of use are violated.  Remember that these license agreements provide USE RIGHTS, not ownership, of the product.  You have to use the solution under the terms and conditions of the license, or you lose your rights to the product, support, or any other benefits included.  http://support.quickbooks.intuit.com/support/articles/INF20630

Why Businesses Use QuickBooks Hosting Services

The reasons why businesses elect to have their QuickBooks solutions hosted come in many forms, which explains why there are a variety of options for getting hosted QuickBooks service.

For users of the QuickBooks Enterprise products, managed IT service may be the primary goal in adopting a cloud hosting model.  Hosted and managed IT services, including hosted desktops and managed applications, allows the business to benefit from predictability in IT cost and to transition from a regularly scheduled capital-intensive upgrade cycle to a consistent and budgetable operational expense.

Users of QuickBooks Pro and Premier, on the other hand, are more likely to see mobility, remote access, and real time collaboration as the primary benefits of a hosted model.  While the small business owner will frequently argue about the true cost of IT management (which is pretty arguable when the totality of their infrastructure consists of a standalone PC), it is the access to the application and data at any time and from anywhere that gets this single user online – generally with a smart phone or tablet computer or some such mobile device accompanying the requirement.

In many cases, there are other drivers in the business moving the organization along the path towards “cloud enablement” of their solutions, and QuickBooks is simply one of the products to contend with.  Hosted QuickBooks may not be THE REASON for going to an online working model, but it is one of the core components which can cause the project to either see success or fail miserably.

I have seen situations where an entire organization’s computing infrastructure was re-deployed as SaaS service, but the one critical thing they forgot was the controller’s requirement for QuickBooks Pro.  Months of time and many dollars were invested in moving the rest of the company to online application service, only to find that they all returned to local application use because of the requirement to work collaboratively with the controller and with reports and data produced through QuickBooks.  On the other hand, I’ve also seen where the accounting department was the only group moved to the hosted environment (in this case, the provider was focusing on QB and not on the rest of the business requirement), and this group also returned quickly to local operation in order to continue collaboration with internal team members and to benefit from the integration of applications (e.g., QuickBooks working with MS Office, etc.).  One size certainly does not fit all, and any purchaser of a hosted QuickBooks solution should keep in mind the entire business requirement in case QuickBooks is only a piece of the puzzle (albeit an essential piece).

Hosted QuickBooks may come as a published or managed application, as a desktop application on a remote or virtual desktop delivery, or as an application“delivered” to the user’s PC.  In any case, whether QuickBooks is viewed as a point solution – delivered alone as a single application – or whether it is part of a larger virtualized desktop or application deployment, it remains one of those products that satisfies a fundamental need in small businesses, and now it’s available in the cloud.

Joanie Mann Bunny FeetMake Sense?

J

Posted on

QuickBooks And The Cloud

qbcloudThere is a lot of buzz about Cloud Computing. I think we all understand that the “Cloud” is that little picture you always see representing the Internet, and that’s what the term refers to: the computing platform isn’t in your office, it’s “out there”, across the Internet. Just think of the Internet as a really long cable that connects your keyboard and monitor to the system that is really running the software.

When companies like Intuit talk about Cloud Computing and QuickBooks, it’s a little bit confusing, given that a large part of their QuickBooks market is still based on locally-installed desktop software. And, with the volume of 3rd party developers with widgets, gadgets, plugins, extensions, and integrations with desktop QuickBooks, the momentum of the desktop solution seems unstoppable. But there has been a catch to the old model of plugging into QuickBooks, and it’s catching on really well.

The creation of the IPP (Intuit Partner Platform) and changes to software integration platforms for QuickBooks introduced an entirely new range of capabilities for QuickBooks developers. Finally, persistent connections to Web-based and other applications may be crafted for QuickBooks desktop, allowing the locally-installed QuickBooks to “speak” over the network to other applications or platform services. This development opens up an entirely new model for extending QuickBooks functionality – extending to a Web application framework.

Businesses are able to take broad advantage of Web-based application services and the features they can deliver without compromise to their choice of accounting and financial management system. Extending access to operational, sales, service, and other users within the enterprise has become a simple and seamless operation. For example, a business that needs to extend QuickBooks Enterprise system to accommodate multiple inventory or warehouse locations can do so easily by simply plugging in a web-based warehouse management solution that has an integration with the QB desktop product.  This solution could be a SaaS (software as a service) application which not only provides functionality for multiple warehouse management, but is designed as an anytime, anywhere application to allow those multiple locations to access the system when they need to.

By creating the means for businesses to use the Web to extend their QuickBooks software, Intuit has extended the useful life of the QuickBooks product. Functionality is no longer limited to what can be built and installed on the PC – the application is now able to be extended in numerous ways and on numerous platforms. Businesses are able to take advantage of the best software fit for their organizational operations – including leveraging the anytime, anywhere benefits of a Web-based application service – and still are able to utilize their QuickBooks.

Consider how beneficial it would be to businesses who elect to take advantage of the Web for them to be able to run their QuickBooks (feature-rich desktop QuickBooks) in an anytime, anywhere sort of environment, as well. From a QuickBooks hosting provider, businesses can get services for QuickBooks Pro, Premier, and Enterprise – allowing organizations to have their QuickBooks financial applications managed, protected, secured, and made available to users all the time and from any location. The hosting service can also support integrations and extensions for QuickBooks – for both desktop and Web-based applications and services. And, with the commercial provider’s ability to provide authorized subscription licensing for both QuickBooks and Microsoft Office, a business can have a complete, outsourced IT solution and pay only monthly service fees to get it. No upfront expense of purchasing software. No installation or system management to worry about. The QuickBooks financials, as well as the solutions it connects to, are connected in the cloud.

Make Sense?

J

Posted on

via Accounting and Business Technologies | QuickBooks Pro and Premier as Software-as-a-Service

QuickBooks Pro and Premier as Software-as-a-Service

Running business applications online was once considered a fad, but has now become a mainstream approach to implementing technology. Businesses large and small are finding that turning technology investments into a predictable expense allows them to focus on their business operations and not the IT budget. For some, the ability to bring remote locations or mobile team members closer to the systems that support the business is the biggest benefit. For others, the security of having business continuity and disaster recovery built into the system is the key. Regardless of the motivating factors, business owners are finding that online application services can make a positive impact to their bottom line.

The market has clearly identified online technologies and application services as something beneficial. This is demonstrated by the rapid adoption and growth of business solutions that leverage the Internet as network. Further, online applications and services are being used as a way to augment systems that were once exclusively LAN or PC based. An example of this is the extension of Intuit’s QuickBooks products to incorporate online payroll services and online payment processing solutions.

With the move to online application services being one of the biggest shifts in technology seen in years, it only makes sense that the applications that have become “standards” in business shift to an online model, as well. The opportunity is great, but the responsibility is greater.

Many software companies are facing a number of problems with respect to the unauthorized hosting of their desktop applications. Because of the technology employed for desktop application hosting is very costly, many service providers feel compelled to “leverage” application licensing and other system features to increase their value proposition and in order to compete. Customers who utilize these unauthorized application services are putting their businesses at potential risk. This risk may come in the form of substandard services resulting in lost or corrupted data; risk may come in the form of unauthorized access to confidential business or personal information due to poor system security; risk may come in the form of exposure due to the unauthorized use of software licenses.

While the market has clearly demonstrated the value and benefit of application hosting services, the lack of protections, consistency and support make it a venture fraught with peril for many. The volume of “grey market” activity and instances of license piracy have undoubtedly increased dramatically, as the cost of service delivery is high and the margins for the service provider are narrow. Manipulating the cost of service by leveraging the application licensing is sometimes the only way some service providers can create profitability in their offerings. But with the prior lack of oversight in terms of service pricing, licensing, quality assurance, or service orientation, it had become the “wild west” for service providers, and the perceived value of the service declined while the number of and variety of deliveries increased.

The answer to the problem, or at least as it exists around the Intuit QuickBooks products, is in the ability for Intuit-Authorized QuickBooks hosting providers to offer subscription access to QuickBooks Pro and Premier licenses when they are hosted. Customers no longer need worry about purchasing their QuickBooks software before engaging with the hosting company, and can avoid the annual cost of upgrading their application software. With the QuickBooks license delivered under a subscription program, customers are able to work with the most current version of the software, and know that their systems are protected and their data is secure. Intuit-authorized QuickBooks Hosting providers can supply, manage, and maintain hosted QuickBooks implementations for businesses of virtually any size and type – all with an Intuit-supported license.

via Accounting and Business Technologies | Joanie Mann: QuickBooks Pro and Premier as Software-as-a-Service.

Posted on

Accounting Professionals, Software as Service, and DIY

Joanie Mann Bunny Feet

The question begs to be asked “how did we get here?” (with “here” being the current state of information technology and the accounting industry). There is confusion in the market; there is still significant debate as to the underlying value of Internet technologies and online application services, and the “managed enterprise approach” has yet to return the benefit and cost-efficiency that is expected.

The accounting industry is experiencing continued change, and understanding the progression of events and technology developments can provide significant insight into where the industry is today and where it will likely be tomorrow. Most professional accounting firms recognize the need to implement technology and solutions that will help the firm and its clients compete in today’s market. Understanding the options available and imperatives that drive the need is key to making the right choices

Technology to manage general business and financial processes has evolved tremendously in the past 20 years, and history clearly reveals that those who have successfully adopted such technologies have done so in stages. Bridge technologies and services (which I fondly refer to as “tweeners”, like cloud hosting of legacy applications) provide a means for safe and low-risk adoption of online working models and managed IT services.

Application hosting solutions have achieved a high level of acceptance in the market, and these are the services that have assisted in garnering online users for the purely Web-based (SaaS and cloud) applications. Providers delivering their “legacy” applications using terminal servers, Quest, Citrix and similar technologies offer the full capability of the Windows application along with the rich Windows interface, as well as the benefits of ASP service and Internet accessibility similar to the Web- app (e.g., the “software as a service” model). This familiarity in functionality and presentation has made adoption of hosted deliveries of these applications a harmless and often seamless transition from localized IT models.

Once a business has adjusted to working online and outsourcing the management of the general IT service, taking the step towards a “true” SaaS solution is much less of a step.

However, trends in the software industry indicate that the concept of “software as a service” has been taken several steps beyond simply providing online access to applications, and are offering outsourced support and finished product deliverables rather than just the software application. For example – an accounting professional may obtain a “finished client tax return” rather than simply purchasing the tax preparation software.

For many emerging Web-based applications, this is the positioning and model which is selected to bolster adoption of the solution.  There has been a great deal of success in offering business users access to a solution, and then providing the actual business service behind it as users find it easier and more efficient than doing the work themselves. This activity has focused on the direct customer and consuming market, where business applications are not sold separately, but as a function of getting the business process facilitated. CRM and helpdesk services are frequently offered this way, as are HR administration and payroll services. The technology has matured to a point where the outsourcer can facilitate the internal business process on behalf of a business fairly transparently, including business bookkeeping and accounting.

All of this serves to devalue the knowledge required to perform the business and accounting processes. There is a belief that has been marketed very well to the small business sector – “if you can write a check, then you can do your own books”. This concept has not proven as realistic as many would choose to believe. But it earned – and continues to earn –  market share. With the trend in software becoming the transparent outsourcing of the processes, is the consuming market likely to recognize the expertise required to manage the outcome?  Retail providers of accounting, tax preparation, and other services (H&R Block, as an example) have quite successfully marketed against the need for businesses to engage with a skilled credentialed professional.  Accounting professionals who do not view this as a threat to their value are simply not paying attention.

Today’s accounting professional must address the realities of Internet technologies, outsourcing, and retail or consumer-direct competition, and the potential impact it will have on the businesses (the client business as well as the professional practice). Recognizing that accountants (by trade) are not typically technologists, it is important to understand that involvement with the financial processes causes a necessary level of involvement with the technology, as well. Professionals who understand and embrace the appropriate use of technology and outsource models are the professionals who will continue to demonstrate their value and expertise to their client businesses and to the market.

With the industry generally moving towards an online, enabling model, those who do not embrace such technologies will rapidly find themselves attempting to compete. As the trend continues to devalue the backoffice processes by essentially hiding them from the consumer (the client business), the position of the accounting services provider is also devalued.

By embracing the technology/enabling model now, the professional service organization positions itself to function as seamlessly with the market as the online service. A clear example of such activity is the emergence of free e-filing of tax returns and the prevalence of low-cost do-it-yourself business bookkeeping and accounting solutions online. Reports indicate that there continues to be a marked decrease in the number of returns prepared by professional organizations as compared to the significant increase in volumes of online do-it-yourself return processing. This has clearly devalued the tax preparation service in the eyes of the consuming market, bringing it down to a level where price is the sole differentiation.

The solution is to fully “enable” the professional services organization, and provide the foundation for seamless delivery of services to the consumer. Once an online working model is adopted within the professional service organization, it gains the opportunity to change and reconstruct internal systems without concern for direct client impacts.

Just as the online application can render the computing platform irrelevant, so can the professional service delivery render the supporting applications irrelevant. This offers the professional service provider the flexibility and freedom to use or develop systems that create differentiation through the underlying process rather than forcing frequent change upon the client.

Make Sense?

Joanie Mann Bunny Feet

J

Have questions about hosting business applications (like QuickBooks)?Are you looking for help developing your IT-enabling model?  Need assistance convincing clients to use the cloud, or onboarding clients to cloud services?

We can help.