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Intuit Reshapes Rev Rec for the Cloud

Brad Smith, IntuitIntuit is adapting its accounting for cloud-based operation. The Mountain View, Calif.-based software vendor is now recognizing desktop revenue over time, instead of at the time of the sale. The move has a big impact as it shifts about $400 million in revenue from the year ending July 31, 2015 into future fiscal years.

Desktop professional tax products are one of the major areas to be affected. Sales of Lacerte and ProSeries will now be handled more like subscription products instead of products that are accounted for as license sales.

The company is also gearing up for a major push to convert desktop QuickBooks customers to QuickBooks Online. For the first time, there were more QBO customers than desktop customers signing on during the most recently ended quarter. The number of QBO subscribers hit 683,000, up from 624,000 on April 30. And it was up 40 percent from the 487,000 at the end for fiscal 2013.

Intuit is planning initiatives to entice users and accountants to move to QBO. Changes in the company's approach to the market, according to CEO Brad Smith.

"We are strengthening the desktop product with ongoing experience release," Smith said.Those will not sport new features but will concentrate on making the product easier to use, but will also have connections to online products, such as e-invoicing and the Intuit Commerce Network.

There will also be incentives for customers and accountants to move to QuickBooks Online.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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