According to this recent story by Michal Clements in ChicagoNow, QuickBooks has more than 80% market share of small businesses that use financial management software. That’s what you call market domination.
So is there any more growth potential for QuickBooks? Yes…among the self-employed. There are, Michal Clements says, 15 million self-employed individuals who have a “casual approach” to their books. (Shoeboxes, anyone?) These are folks who are have not yet used technology to address their self-employed bookkeeping needs. How will these entrepreneurs be reached?
Intuit wants to reach them through something called QuickBooks Self-Employed. This version of QuickBooks lets you record expenses and income, manage quarterly estimated payments (it can interface with TurboTax), pull data from your bank account or credit card accounts, write checks, and more. (They are working on billing capabilities now, according to their website.)
So it strikes me as an application that has more than personal finance (like Mint or Quicken) but less than general accounting (like QuickBooks desktop or Online). It is phone and tablet-based. It is licensed as a service, which is very much in line with Intuit’s recurring revenue model strategy. What would be the lifetime customer value of 15 million monthly subscribers? It boggles.
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Will Intuit succeed in signing up a good chunk of the 15 million shoebox entrepreneurs? What do you think?
Are you a user of QuickBooks Self-Employed? How is it working for you?