As trusted advisors, accounting firms play a crucial role in navigating their clients through the ever-changing landscape of financial management tools. Intuit's announcements about which QuickBooks Desktop (QBD) versions are being sunset and which are no longer being sold as new plans will have significant implications for your clients, many of whom rely on this software for their accounting needs. This blog will outline exactly what’s happening, the benefits of moving to QuickBooks Online (QBO) or other systems, and how accounting firms can effectively guide their clients through this transition.
Is QuickBooks Desktop Being Phased Out? What Intuit is Doing:
QuickBooks Desktop has long been a reliable tool for accountants and businesses alike. However, as cloud technology advances, the limitations of desktop-based software have become evident. As a result, Intuit relies on two different phase out methods for legacy software in order to allocate resources to new developments.
First, Intuit will regularly stop selling new subscriptions to older versions of their software. This year, Intuit will stop selling QuickBooks Desktop Pro Plus, Premier Plus, Mac Plus, and Enhanced Payroll to new U.S. subscribers after July 31, 2024. Existing subscribers can continue to renew and receive updates. QuickBooks Enterprise is not affected and will still be available. This change applies only to new purchases, not current users. Accountants can continue purchasing Desktop Accountant products via the Accountant Sales Channel.
Secondly, Intuit will discontinue or “sunset” older versions. In 2024, Intuit will discontinue QuickBooks Desktop 2021 after May 31st. This affects all versions, including Pro, Premier, Enterprise Solutions, and Desktop for Mac. Users must upgrade to a newer version or switch to QuickBooks Online (QBO) to maintain access to critical services like payroll, payments, and online banking. After May 31, 2024, discontinued versions will no longer receive updates or technical support, and integrated Intuit services will be inaccessible. Additional information about their discontinuation policy can be found here.
Why Transition to QuickBooks Online (QBO)?
For many clients on discontinued versions of QBD, QuickBooks Online (QBO) is the obvious, easiest choice for a new accounting solution. They are already familiar with the QB interface and so can adjust quickly, in addition to the added benefits that QBO offers:
Accessibility and Convenience: QBO offers unmatched accessibility, allowing clients to access their accounts from anywhere, anytime, on any device with internet access. This flexibility is essential for businesses with remote teams or multiple locations.
Automatic Updates and Backups: QBO ensures clients benefit from automatic software updates and backups, providing access to the latest features and security enhancements without requiring manual updates or additional IT support.
Integration and Automation: QBO seamlessly integrates with numerous third-party applications, from payroll and payment processing to inventory management and CRM systems. This integration capability helps streamline business processes and reduce manual data entry for your clients.
Scalability: As clients' businesses grow, QBO can scale with them, offering various plans and add-ons to accommodate increased complexity and transaction volumes.
Cost-Effectiveness: While QBO involves a subscription fee, it eliminates the need for expensive hardware, IT support, and the costs associated with maintaining and upgrading desktop software.
Exploring Alternatives
While QBO is a natural choice for many QBD users, it may not be the best fit for everyone. There are several other accounting systems available that might better suit your clients' unique needs:
Xero: Known for its user-friendly interface and robust features, Xero is a popular alternative that offers extensive integration options and scalability.
Sage Intacct: Ideal for growing businesses, Sage Intacct provides advanced financial management capabilities, including real-time reporting and analytics.
Oracle Netsuite: Designed for larger businesses and those with complex needs, Oracle NetSuite offers a comprehensive suite of enterprise resource planning (ERP) tools, including advanced financial management, CRM, and e-commerce solutions.
Tips for Accounting Firms to Ensure a Smooth Transition
Whether transitioning from QBD to QBO or another accounting system, the process needs to be tackled carefully. Whole teams at accounting firms dedicate their time just to data migrations. However, here are some tips to help you and your client successfully transition:
Assess Client Needs: Before making the switch, evaluate each client's current accounting processes and identify their specific needs. This will help you recommend the right QBO plan or alternative system.
Data Backup and Cleanup: Ensure all client data is backed up before starting the transition. Take this opportunity to clean up their data by eliminating duplicates and correcting errors.
Choose the Right Time: Plan the transition during a period of low activity to minimize disruptions for your clients. Year-end or the beginning of a new fiscal period is often an ideal time.
Migrate Data Efficiently: Use Strongbox to transfer client data. This includes charts of accounts, customer and vendor lists, transactions, and more. More on this in a minute.
Training and Support: Invest in training for your clients' teams to ensure they are comfortable using the new system. Most systems have extensive support resources, including tutorials, webinars, and customer support. This could also be a great opportunity to sell additional services your firm might offer.
Test and Validate: After migration, thoroughly test the new system to ensure all data has been transferred accurately. Validate that all reports and processes function as expected.
How Strongbox Can Help with Data Migration
Migrating data from QBD to QBO or another accounting system can be daunting. This is where Strongbox comes in, offering a seamless and efficient data migration solution. Strongbox extracts the financial data from QBD and uses that data to populate the upload templates for the new accounting system. The Strongbox Excel Output also includes tools to help you map new accounts and provides all source data to cross-reference for accuracy.
Here are some of the benefits of using Strongbox for a data migration:
Secure Data Handling: Strongbox ensures that your clients' sensitive financial data is handled with the highest level of security. Our robust encryption protocols protect data during the transfer process.
Comprehensive Data Migration: Strongbox handles the entire migration process, including charts of accounts, transaction history, customer and vendor information, and more. This ensures no critical data is left behind.
Error-Free Transition: Our advanced validation tools identify and correct any discrepancies during the migration process, ensuring data accuracy and completeness in the new system.
Cost-Effective Solution: By reducing the time and resources needed for manual data entry and validation, Strongbox offers a cost-effective solution for your data migration needs.
In conclusion, the phasing out of some QuickBooks Desktop versions presents an opportunity for accounting firms to lead their clients toward modern, cloud-based accounting solutions like QuickBooks Online or explore alternatives that better meet their needs. With the right approach and tools like Strongbox, the transition can be smooth, secure, and beneficial for your clients' growth and efficiency. Contact our team today to learn how Strongbox can help you data migration team.
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