The most commonly used accounting software system for GreenStone customers these days is QuickBooks. The product is easy to use and has been relatively cheap in the past. Recently we have been receiving a lot of questions from customers asking what is going on with QuickBooks and all of its product and pricing changes in the past year.
In this article we hope to provide insight into the changes QuickBooks has made recently, how these changes might impact its users, and what you should consider moving forward with your accounting system.
What changes has QuickBooks made?
1. No more CDs!
2. All of its products have moved to a subscription based model.
In the past, business owners could pay once to download QuickBooks Desktop and use it for years without additional fees by forgoing the annual upgrades. However, 2021 was the final year that Intuit made QuickBooks Desktop available for a one-time fee. Like many software companies, QuickBooks has moved to a subscription based pricing model. Beginning in 2022, new QuickBooks Desktop releases are only available with an annual subscription. Additional fees apply for payroll and other add-on services.
3. Pricing increases coinciding with these changes!
In addition to the subscription changes, the prices of all products have also increased and there are new fees for customers with payroll. Normally I would provide pricing examples for you to identify the possible impact this could have – however, QuickBooks pricing is very confusing! I have not been able to calculate the exact impact of the pricing changes, but my estimate is that for customers with payroll and approximately 10 employees, the costs will increase approximately 40% over a 3 year period from what has been paid in the past, Business owners accustomed to getting years of accounting software use for a one-time fee are obviously concerned about the higher annual cost.
Can I just keep working on my older QuickBooks desktop version?
The answer is that it depends on which version you own and which products you use. If you only use basic recordkeeping and accounting features, you may not need to upgrade right away. You can continue entering transactions and generating financial statement reports with no issue. However, if you use an older version, you may have trouble sharing your company file with other QuickBooks users, like your accountant, who have the latest version.
QuickBooks Desktop 2020 users should be aware that Intuit discontinued support for add-on services including Payroll Services, Live Support, Online Backup, Online Banking, and security updates on May 31, 2023. This includes the electronic “Send To My Accountant” feature. If you rely on any of these services, you should be prepared to upgrade to the current version of QuickBooks Desktop (this can be done by calling QuickBooks customer service) or switch to another program.
Should I switch systems due to all of these changes?
Again, it depends. QuickBooks is a great product – and if you have used it for a while, you are probably pretty comfortable with its user friendly platform.
The most important thing to note is that farmers need to use an accounting system that provides sound financial records to prepare income tax returns, to obtain financing from lenders, to analyze new investments, and to make business decisions with confidence. A strong financial accounting system is foundational to the success of any farm. Every accounting system has its costs and benefits, and a farm manager must analyze all of these items to select the best option for their business.
If I do switch, what do I need to think about?
Any time a product you use or a cost you incur changes significantly, it is good to evaluate your position and other options you want to consider:
- Do you switch to another software offering? CenterPoint by Redwing makes a great agriculture software program as does PcMars Farm Accounting Software, amongst others. Agriculture specific accounting programs are typically even more expensive than QuickBooks. You need to make sure you are going to use these programs to their fullest to offset your additional costs.
- How easy is it to transfer financial data from the existing accounting system into the new one? Will the farm lose access to records that cannot be transferred?
- Does the accounting system meet the needs of external entities? Can the farm file tax returns on time and generate information that lenders require?
- Do you consider outsourcing to an accounting firm for all of your accounting needs or a portion of them – i.e. outsource payroll processing and tax payments? Farm owners have a never-ending list of things they could do with their time if they were not sitting in front of a computer entering transactions. For this reason, it is critical to include the opportunity cost of owner labor when evaluating the true cost of an accounting system or outsourcing certain services.
If you decide to change accounting software, it is imperative that you discuss the transition with your tax and/or accounting professional so that prior year data is entered into your new system appropriately.
Reach out to your local GreenStone tax and accounting professional if you need assistance with considering any of these issues listed, understanding QuickBooks changes or any other financial related services. Our team of experts is ready to help!
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