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Intuit: 60 Percent New Users Buy QB Online

Dan Wernikoff, IntuitIntuit, pointing to accelerating sales of its web-based accounting software, says 60 percent of new QuickBooks users are purchasing the cloud-based QuickBooks Online. The company has also hiked projections for the total number of QBO users it will have in two years by 10 percent. Intuit issued the data as part of its Investor's Day webcast last week.

Despite the growth, 75 percent of QuickBooks revenue comes from the desktop units. The company attributed that partly to the accounting profession.

"Accountants have been slow to migrate their customers on line," SVP Dan Wernikoff said the "installed base is aging gracefully" and Intuit expects to see an increase in revenue per customer from the desktop crew. He said part of the reason is the increasing number of products purchased by customers with much of the increase coming from payments and payroll and subscriptions to QuickBooks desktop versions.

Meanwhile, the software company raised projections for QBO unit growth.The company had expected to hit 2 million by the time its fiscal year ends on July 31, 2017, but has raised the estimate by 200,000 subscribers. The company crossed the 1-million subscriber mark in June.

Lack of certain features, particularly inventory, and data migration issues help hold down the migration to QBO. Wernikoff says Intuit is working to close those gaps. Despite the resistance of some of the desktop to change, the business coming via QBO represents a big gain in customers. In earlier remarks during the webcast, CEO Brad Smith said 84 percent of new QBO customers "are new to Intuit and new to accounting software."

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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