Reasons for FAST QuickBooks Online User Growth vs. QuickBooks Desktop

The many reasons for FAST QuickBooks Online user growth vs. QuickBooks Desktop are partly detailed in my March 7, 2018, LinkedIn post (Quickbooks Pro Plus on the Cloud vs Quickbooks Online).

The FAST QuickBooks Online growth is incredible. QuickBooks Online had 2.8 million users on February 28, up more than 960,000 (51%) in a year. This included QuickBooks Online Self Employed, which went from 180,000 to 490,000 in the year (+172%). QuickBooks Online versions (without Self Employed) grew from about 1.7 million to more than 2.3 million (+39%). More striking than total gains were U.S. vs international gains (47% vs. 69%). To the contrary, annual QuickBooks Desktop sales ending February 2018, plus subscribers at year-end, were 1.149 million, down 166 thousand (13%).

Here are some reasons.

  1. As one user said, QuickBooks Online is all Intuit pushes. There are many very good reasons for this. Investors value constant income increases more than Turbo Tax and QuickBooks Desktop ups and downs.
  2. Many studies show major cloud benefits (high-quality compatible standard computers, compatible programs, multi-location redundant computers, bad computers instantly replaced, better virus and malware programs, much better backups, transaction logs (fast recovery), supervised on and off-site computer professionals, programming change speed, automatic program distribution, limit program versions to limit support costs and bug fixes in different versions, better air conditioning and power, better safe and secure facilities, fire and disaster protection, lower costs, uninterrupted remote access despite serious local problems).
  3. The extra cost and complexity of having QuickBooks Desktop on remote servers.
  4. 6 years of having 75% – 80% of Intuit development money go from desktop to online. This made QB Online far better, especially in the last 5 months, IF USED WITH QB ONLINE ACCOUNTANT (client-server, far faster, more secure, may work without internet).

QB Online keeps getting better. Desktop users keep having known bugs not fixed and switch. However, the big  QuickBooks Online gains are not mainly from QuickBooks Desktop. They are from targeting 20+ million small businesses using Excel or paper accounting!

Current QuickBooks Online versions are so fast, easy, and powerful that it is a no-brainer to use them with many small companies. CPAs fight for large and medium clients (less than 1% of businesses have 500 employees). Intuit does very well serving small companies, especially by switching some of the 20 million paper and Excel users.

We have long specialized in them as well.

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