As one of the top QuickBooks Enterprise Premier resellers, I wanted you to be aware of some breaking news.
A seismic shift is happening in QuickBooks Enterprise land, starting on Monday, October 6, 2014...
Starting then, the ONLY way to purchase QuickBooks Enterprise software will be by paying an annual subscription fee (either monthly or one annual payment). No longer will you be able to "pay once" and use the software as long as you want (be sure you see the details below on just how this is going to impact your checkbook!)
CRITICAL STUFF YOU NEED TO KNOW
First and foremost, the information below ONLY applies to those purchasing QuickBooks Enterprise on or after October 6, 2014.
If you already own Enterprise, you can head directly to the "What if I Already Own Enterprise" section further below.
If you are considering a purchase of QuickBooks Enterprise, please read on.
YOUR CHOICE - SILVER, GOLD OR PLATINUM
So let's break it down...
Under this new annual subscription model, you will have a choice of subscription levels to choose from. Here is a list of your options:
- QuickBooks Enterprise 2016 Silver Edition (1 year subscription) - this subscription level includes the QuickBooks Enterprise 2016 software, Full Service Plan and the Advanced Reporting capabilities. Internet access is required.
- QuickBooks Enterprise 2016 Gold Edition (1 year subscription) - this subscription level includes the QuickBooks Enterprise 2016 software, Full Service Plan and the Advanced Reporting capabilities (everything included in the Silver Edition). It also includes a full year of the Intuit Enhanced Payroll Service for unlimited employees. Internet access is required.
- QuickBooks Enterprise 2016 Platinum Edition (1 year subscription) - this subscription level includes the QuickBooks Enterprise 2016 software, Full Service Plan, the Advanced Reporting capabilities, a full year of the Intuit Enhanced Payroll Service for unlimited employees (everything included in the Gold Edition). It also includes a full year of access to the Advanced Inventory and Advanced Pricing modules for QuickBooks Enterprise. Internet access is required.
The choices you will make at the time of purchase will consist of:
- How many users you want
- Which edition (from the list above) you want to subscribe to
THE BIG IMPACT ON YOUR CHECKBOOK...
Let's take a look at a basic example so you can see how this is going to work.
To keep it very simple, I'll assume you are going to use the software for 3 years, aren't interested in upgrading to the new edition every year, that you want a 5 user edition of QuickBooks Enterprise, and don't have any need for Enhanced Payroll, the Advanced Inventory or Advanced Pricing modules.
- Under the "old way" (before October 6, 2014), the list price of a 5 user edition was $3,400. You purchase the software and simply use it for three years. Your total cost over the three years was $3,400 (I'm leaving out the optional costs relating to the renewal of the support plan each year to keep this simple).
- Under the "new way" (on or after October 6, 2014), you would choose the Silver Edition annual subscription. The base cost for a 5 user edition is $2,800 PER YEAR . Your new total cost over the three years is now $8,400. Keep this critical piece of information in mind - if you don't pay your subscription fee, QuickBooks Enterprise stops working. Bummer.
IMPORTANT NOTE: I can get you discounts of 20% on the subscription price of QuickBooks Enterprise to lower your cost!
Of course, if you make other assumptions about the desire to upgrade to the latest edition every year or other variables, the numbers as presented above would change.
My goal with this example is to strip it down to the basics that many businesses would want - purchase the software and simply use it for 3 years.
Be sure to visit my web site for special offers, discounts, and details about QuickBooks Enterprise 2016.
ADDITIONAL THINGS TO KNOW ABOUT THIS CHANGE
Now that you've had a chance to digest how the subscription plans are going to work, let's get to other areas that will likely need clarification:
- QuickBooks Enterprise is NOT becoming a "cloud-based" product. It is the same software as it has always been. It can either be installed on PCs/servers on a local network or it can be used via a QuickBooks Enterprise hosting service just like it always has operated. I cannot stress this enough - the software itself is NOT changing - just the way you buy it is!
- Pay by the month or one annual payment - the choice is yours, but there is no discount for paying in full. Most all of my clients are choosing the monthly option to conserve cash.
- There is NO choice of the "old way" or the "new way" when buying Enterprise - all purchases on or after October 6, 2014 will be offered on the subscription basis only.
- Intuit reserves the right to make changes - they may offer discounts, they may not. They may make changes to the subscription levels. It's their call. As a reseller, I'll be right there in helping you sort out your options and getting you the unbiased insights you need.
- Yes, the software will have a "kill switch" in it - if your subscription is not renewed, the software will no longer work. Since your QuickBooks database is a separate file from the QuickBooks program, you will still have the database. However, you won't be able to read the information in the database unless you have the software to go with it. See the dilemma you'll have if you don't renew?
BUT WHAT IF I ALREADY OWN ENTERPRISE?
As a current owner of QuickBooks Enterprise before October 6, 2014, you are not impacted by the new pricing model above. Here are the options available to you in the months ahead:
- Choose NOT to renew your full service plan when it comes up for renewal - keep using the version of QuickBooks Enterprise you currently have installed. If and when you decide to purchase a newer version of QuickBooks Enterprise in future years, you will then fall into this new subscription model as described above.
- Renew your current support plan when renewal time arrives - when you are presented with the invoice for the renewal of your full service plan, you pay the invoice, and then you get the free upgrade to the next edition of Enterprise and twelve months of access to the Enterprise support desk.
- Don't be surprised to see the price for the renewal going up! Intuit makes the determination of these amounts each year - we'll see how that all plays out over the next few years as this new subscription model takes hold.
- Opt for the subscription plan - you can choose to opt in to the subscription plan at any time if you like.
ALTERNATIVES TO QUICKBOOKS ENTERPRISE?
My blog post on the topic of alternatives to QuickBooks Enterprise will provide you some additional insights and information to help in the understanding of how this whole thing has come to pass.
NEED HELP SORTING IT ALL OUT?
As a reseller of QuickBooks Enterprise, count on me in the coming weeks to provide you with the "straight scoop" about this very significant change in the way Enterprise is being sold.
Feel free to contact me with questions you have about purchasing QuickBooks Enterprise software.
WHAT'S YOUR TAKE ON THIS CHANGE?
Don't be bashful! Are you liking this new approach? Not liking it? Let's hear it! Please drop your comments in the comment box below...