QuickBooks Enterprise Continues Its Move to Subscription Only Model

A considerable change is in the works for QuickBooks Enterprise and in the software business as a whole. The only way to purchase QuickBooks Enterprise software will be by paying an annual subscription fee (either monthly or one annual payment). The biggest difference: no longer will you be able to pay once to use the software as long as you want – access to the program stops once your subscription expires. With this change, we’ve outlined the critical information to be aware of. Please note the information below only applies to those purchasing QuickBooks Enterprise (Pro and Premier versions remain unchanged).

Under this new subscription model, you will have the choice of subscription levels to choose from:

  • QuickBooks Enterprise 2016 Silver Edition – includes the QuickBooks Enterprise 2016 software, full service plan and the advanced reporting capabilities.
  • QuickBooks Enterprise 2016 Gold Edition – includes everything available in the Silver Edition, plus a full year of the Intuit enhanced payroll service for unlimited employees.
  • QuickBooks Enterprise 2016 Platinum Edition – includes everything available in the Gold Edition, plus a full year access to advanced inventory and advanced pricing modules for QuickBooks Enterprise.

When it’s time to purchase, the choices you will need to make include how many users you want and which edition (from the list above) you want to subscribe to.

Your checkbook will feel this impact. Here is a basic example to show how pricing will work:

Let’s assume you are going to use the software for three years, aren’t interested in upgrading to the new edition every year, that you have a five user edition of QuickBooks Enterprise, and don’t have any need for enhanced payroll, the advanced inventory or advanced pricing modules.

  • Previously, the list of price of a five user edition was $3,400. You purchase the software and simply use it for three years. Your total cost over the three years is $3,400.
  • With the new subscription model, you would choose the Silver Edition annual subscription. The base cost for a five user edition is $2,800 per year. Your new total cost over three years is now $8,400.

Here are some additional areas to be aware of:

  • QuickBooks Enterprise is not becoming a “cloud-based” product – it’s the same software as it has always been except now it has an annual subscription.
  • Pay by the month or one annual payment – there is no discount for paying in full or month-to-month.
  • There is no choice of the “old way” or the “new way” when purchasing Enterprise – all purchases previously made AFTER October 6, 2014 will be offered on the subscription basis only.
  • Intuit reserves the right to make changes – they reserve the right to offer discounts, make changes to the subscription levels, etc.
  • The software has a “kill switch” – if your subscription is not renewed, the software will no longer work.

What if I already own Enterprise?

Current owners of QuickBooks Enterprise purchased before October 6, 2014 are not impacted by the new pricing model above. These 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.
  • Renew your current support plan when renewal time arrives – don’t be surprised to see the price for renewal increase.
  • Opt for the subscription plan – you can choose to opt into the subscription plan at any time you like.

For more information please contact your BerganKDV Advisor.

CATEGORIES: Accounting Services
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