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.

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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.

QuickBooks And The Cloud

There has been a lot of buzz recently 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 the largest part of their QuickBooks market is 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 has introduced an entirely new range of capabilities for QuickBooks developers. Finally, persistent connections to Web-based and other applications may be crafted for both 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 now 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 like AORapid Inventory.  This solution, actually developed and delivered by AccuCode, is 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 an Intuit-Authorized Commercial Host for QuickBooks businesses can obtain hosting 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

Managing Client Relationships in a Down Economy

There is no question that the current economy is putting the squeeze on many professional practices. While most accountants aren't in danger of going bankrupt, there is heightened anxiety throughout the industry as professionals grapple with flat or falling revenues and rising costs. You, too, are probably feeling the effects of the economic downturn, as your clients also look for ways to cut costs.

During tough economic times, a familiar pattern occurs in small business. As production drops, profits drop even faster. Even a slight drop in income sets off alarm bells in the minds of many owners. To stave off a serious decline in revenues, the small business owner will often feel compelled to offer services to customers that might previously have been referred out to "specialists", or to substantially discount products or services in order to obtain business. Additionally, the business owner will certainly seek to cut business overhead.

This last point has a direct impact on the livelihood of the professional accountant, bookkeeper or business consultant. When businesses tighten their belts, they may not necessarily do it in a logical manner. They may procrastinate by stalling on purchases or putting projects on hold indefinitely. They may buy smaller quantities of supplies, even if this means ordering much more frequently. And they may cut back on their reliance on accounting or consulting professionals.

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These types of client behaviors can be very frustrating for a professional practice. If several of your "normal" clients cut back on their service from you, your income will be affected. The real question is what can you do to help protect your business and your client relationships?

Be Genuinely Empathetic. Your clients are interested in themselves and their business, not in you. You need to get their attention, and in order to do this, you need to know their pains, pleasures, and fears. These are the emotions that make people buy, not "needs" or "wants". Pain, pleasure, and fear are strong, passionate forces that supersede any economic climate. Ask questions in a way that will extract these feelings, enabling you to be truly empathetic. Relationships are what are important, not the price, and relationships are long-term. When you help your clients build their businesses, they will help you build yours.

Be a source of positive information. You might be the only positive person the client meets with this week. When the economy weakens and business slows down, the "commiseraters" begin to work overtime, and misery loves the company. Imagine a room full of gloomy doomsayers, sitting around a conference table talking about the latest negative economic news, and feeling worse for the experience. Compare that to the consultant who throws their client a lifeline of hope and optimism. Who would you rather work with?

Be watchful for situations that represent opportunity for you. Pay special attention to the following elements that put a client account "in play".

• Change in control, such as a change in ownership of the client's business
• Change in current provider performance
• Loss of favor in a provider
• Change in decision maker
• Change in cost/value to client

These are fairly universal, but occur more frequently in a down economy. While these types of activities may mean more opportunity for your business, they also underline the importance of keeping current clients satisfied and feeling they are receiving value from you.

Help your client recognize when it's smart to spend money. Too often, software and business consultants succumb to the pressures of a tough economy and actively look for ways to help clients "get by" with what they have. This may seem like a way to conserve capital, but the result is often that the client spends more in services, repairs, and lost productivity than the initial investment would have been. Just as it made sense to buy a new economy car to save on gas bills, it often makes sense to invest in software and services in order to obtain better and more predictable results for the cost.

original publication date: Friday July 24, 2009

The working model for demanding clients is On Demand

Imagine being able to access your clients' accounting data when you need to. It wouldn't matter if it was early in the morning, in the middle of the day, or at night. And it wouldn't matter where you were - at the office, at home, or on the road. That would be pretty nice, wouldn't it?

From Wikipedia: "On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front financial investment and instead participates in a "pay as you go" plan - a model which makes on-demand services frequently more affordable for users.

Today's technology solutions allow you to have this type of flexibility and "instant gratification", while delivering the reliability, security and performance your business and your clients' businesses demand. By using technology to improve how you, your team members, and your clients work together, you can introduce new efficiencies into your existing business model. By using technology to your strategic advantage, you can change the way you do business and build new and more value into your services.

If you haven't yet involved your practice with online and Internet-based application services, you should move now to find out how they can streamline your existing processes, or even transform your practice into a firm which is ready to offer the type of "on demand" services and solutions business owners are looking for. The market has created the demand. Will you be ready to meet it?

Online Collaboration with QuickBooks Pro

The trend for small business accounting is outsourcing - sending the work to a professional who has the time and the knowledge to properly account for the business activities. The only problem with this approach is that the business owner frequently loses touch with this key business information while it is in the hands of the accountant or bookkeeper. Anyone who has delivered the monthly work to their professional, only to receive it back some time during the following month, understands what it means to be out of touch with the business numbers.

The better way is collaboration in real-time. Through the use of Internet technologies and online applications, the professional and the business owner are able to work together on the numbers, ensuring that the data is accurate, complete, and recorded in a timely manner. With online access to QuickBooks Pro, for example, the accountant and the small business owner can work closer in "keeping score" on the business. The close working relationship afforded with the online application service allows the professional to increase efficiency and effectiveness in processing the client information. And more efficiency often means more time - time to review the information, consult with the owner, and help keep the business on target and moving towards their goal.

You are the trusted advisor

The accounting professional has always been seen as a business advisor - a trusted partner that understands the conditions that impact business performance. This advisor not only reports on the business performance, but may make recommendations or judgments on certain situations or processes that are key to the business model. Leveraging your direct participation in your clients' financial systems can be a very successful component of practice building - mining out other opportunities that may exist in current client engagements.

In some cases, your clients will want to process their own bookkeeping in-house. Rather than taking a hands- off approach to these clients, engage them by providing training or consulting services to support their in-house bookkeeping.

If your firm provides real-time guidance and reviews, the quality of the financial information is far better and requires less work to adjust and report. Ultimately, saving your client time and money will reward your practice with more opportunity to engage the client in other efforts.

Protecting Yourself Against Data Theft

by Michael Ehart, CISSP, etc.

There has been a rash of reporting of data theft lately that has a very strange effect of causing many to become complacent about their data protection measures because, after all, their system is working.

The problem is that there is no way to know if your data is bulletproof. You can only be certain when it is not, and you have evidence that your security has been breached. The vast majority of data theft is undetectable and unprosecutable, because unlike physical theft the stolen data is still there. If someone sneaks into a museum in the dead of night, dressed in spandex and night goggles and makes off with a Bottecelli, in the morning there is a big square of unfaded wall, an empty nail, a light dusting of tracked-through laser-detection talcum powder and no painting. The problem with stolen data is that most of the time there is no way to know that your system has been breached, or if it has been, that anything is missing because nothing is actually missing.

So what do you do to keep your data secure? The threats come in three flavors, and there are steps that you can take to protect yourself from each one.

1. The Barbarians at the Gates. There are people out there who don't like you. There are people out there who don't care about you, but want what you have. And there are people out there who don't care about you, or what you have, but want inside just because they can. These are the folks that firewalls were invented to thwart, and I assume that you have covered this loophole. Firewalls, encryption, strong passwords, and some sort of Intrusion Detection System (IDS) cover you there. If you don't understand or like this stuff hire someone who does. A competent IT security consultant can set up most small practices in a few hours of system hardening. Do make sure that the contract includes some basic training for your users concerning the changes and best practices.

2. The Enemy Within. Far more likely to cause you grief is the viper cherished in your bosom. No one knows for sure, but I would guess that the retail model applies here--- 90% internal theft. After all, who else holds the keys to your kingdom? Training, monitoring, set usage policies and careful terminal check-out procedures can help, but you never know. If you have 20 employees and they all seem perfectly content, either you are the shining example all other bosses should aspire to or at least 5% of your workforce is adept at hiding their dissatisfaction. I know which one seems most likely to me.

3. Stupid is as Stupid Does. And Stupid seems to be doing more than his fair share lately. Data theft is the classic crime of opportunity. "It was just laying there, so I took it." Or "The web site was unsecured" or "The safe was left open" or -one that I recently was asked about- "I left the box of records in the back seat, and someone borrowed my car." I love consulting, but dang, please make it harder for me, will ya? No more post-it notes with passwords conveniently stuck to the monitor, or so cleverly stuck under the keyboard. No more backup tapes on a shelf behind your desk, or stacked on top of the server. No more shared passwords for the entire office. Once again, if you don't know about this stuff contract someone who does. It is so very much cheaper and less stressful to spend a few bucks and a few hours hardening your system and providing a few hours of common sense training for your crew than it is to learn about your data disclosure from the guy with good hair and too many teeth holding the mike and standing sideways in your lobby so his cameraman can get a good shot.

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Power to the People

Having the information you need when you need it is critical to making the right decisions for your business. The unofficial motto of the information age is "Information equals power", but information trapped inside your computer equals nothing. The key is to not only capture and retain data, but to turn that data into useful information and then make it available to those who need it. This can be more challenging than it sounds, especially when it comes to providing access for remote team members, co-workers or clients.

Unless your business has a competency in technology management, the wise choice may be to outsource the solution to your most challenging technical problems. With application hosting services, for example, you can use the software and systems that your business is already familiar with, and you simply access those systems in a different way. The ASP (application service provider, or host) takes care of the systems, the applications, and the network. Users are able to access their applications from any Internet-connected PC, and are assured that their programs and their data are secure, backed up, and available when they need them.