Here is where we’re at. As of May 31, 2024, several services associated with specific versions of QuickBooks Desktop will no longer be available, marking a significant transition for users of this longstanding accounting software. Following this change, purchasing QuickBooks Desktop will be entirely phased out by July 31, 2024, as Intuit shifts its focus towards more cloud-based solutions. This move impacts numerous users across various sectors, including government contractors who have relied on the robust features of QuickBooks Desktop for their complex accounting needs.
In this article we’ll build upon our previous article and delve into the comprehensive options available for government contractors in the wake of these changes. We will explore the current landscape of QuickBooks and where it seems to be heading while diving a bit deeper into your specific software options depending on your present relationship with QuickBooks and where you are looking to go in the future. Our goal is to shed more light on this development and offer insight and guidance to government contractors who want to know their options.
What Are the Current QuickBooks and Alternative Options for Government Contractors?
Whether you are a current QuickBooks user or are considering adopting QuickBooks for your accounting needs, it's crucial to stay informed about the future options available, especially for government contractors. Let’s take a look at how things are unfolding and what paths are available for you to stay compliant and effectively manage your accounting needs.
QuickBooks Online
Intuit's strategic pivot toward cloud-based solutions is evident in their gradual phasing out of QuickBooks Desktop, pushing users towards QuickBooks Online. However, as we stated in the previous article, this transition poses challenges for government contractors, as the current setup of QuickBooks Online lacks several critical features that are essential for this sector. Government contracting requires robust compliance tracking, detailed cost accounting, and sophisticated reporting capabilities that are currently more effectively handled by the Desktop versions. This discrepancy highlights a gap in Intuit's offering, as the online version has not yet fully adapted to meet the complex and specific needs of government contracting, leaving these professionals in search of either modifications to the existing online tools or alternative software
solutions that can cater to their intricate requirements.
QuickBooks Desktop
If you are a current QuickBooks Desktop user, here is the release from Intuit regarding the software and service discontinuations:
After May 31, 2024, your QuickBooks Desktop 2021 software will be discontinued. This includes all 2021 versions of QuickBooks Desktop Pro, QuickBooks Desktop Premier, QuickBooks Desktop for Mac, and QuickBooks Enterprise Solutions v21. Other Intuit products are affected by the software discontinuation. If you don't upgrade your QuickBooks Desktop 2021 by May 31, 2024, you won't have access to live technical support if you run into problems or any of the other Intuit services that can be integrated with QuickBooks Desktop. This includes QuickBooks Desktop Payroll, QuickBooks Desktop Payments, and online bank feeds. Discontinued versions won't receive the latest critical security patches and updates.
Your access to QuickBooks Desktop Payroll, Desktop Payments, live technical support, Online Backup, Online Banking, and other services through QuickBooks Desktop 2021 software will be discontinued after May 31, 2024. This also means you won't receive critical security updates protecting your data starting June 1, 2024.
Whether your QuickBooks software is being discontinued or you are looking to purchase a new version of QuickBooks Desktop, you will need to make that purchase before July 31, 2024. After the 31st US customers will not be able to upgrade or purchase QuickBooks Desktop*.
A Word of Caution
If you are dead set on upgrading to the latest version of QuickBooks Desktop before July 31st to ensure continued support, Intuit has made it clear that you have the ability to do that. Though, from my own personal research, I have found it extremely difficult to find any purchasing options on their website. Any mention of QuickBooks Desktop takes you to a QuickBooks Online purchasing page and *the only “Desktop” version of their software that I can find for purchase on their website is QuickBooks Desktop Enterprise (starting at $1922/yr). Additionally, from QuickBooks user forums online it seems that when you try to call them to make the upgrade or purchase they strongly try to push you onto QuickBooks Online.
Not knowing what the future holds, from an outside perspective the writing seems to be on the wall that Intuit wants to phase out desktop versions of QuickBooks in favor of QuickBooks Online. While they are currently still supporting the latest desktop versions, who knows how much longer that will last.
Alternative Software Solutions for GovCons
For government contractors seeking alternatives to QuickBooks, there are several software options tailored to meet the intricate compliance and reporting demands of federal contracts. Deltek Costpoint stands out as a prominent choice, offering deep project accounting capabilities, labor distribution, and stringent compliance features designed specifically for government contractors.
By utilizing our Systems Review and Recommendation Services, you can receive a no-obligation assessment of your systems setup and needs to determine an appropriate course for your organization.
Our experts then provide personalized
recommendations tailored to your specific needs, helping you determine a software solution that enhances performance, compliance, and financial management.
Outsourced Accounting Services
Lastly, maybe you want to forego in-house accounting all together. For government contractors who prefer not to manage their own accounting, outsourced accounting services offer a seamless solution that ensures compliance and efficiency without the overhead of an in-house team or personal software solution. These services are particularly beneficial in the government contracting sector, where the complexity of regulations and the need for precise financial tracking and reporting are paramount.
The additional benefit in this instance is the freedom from needing to purchase an accounting software altogether, removing the stresses of this QuickBooks conundrum. While outsourcing accounting services may not be for every organization, there are unique benefits that are worth considering. You can learn more about our specific services as well as “The Benefits of Outsourcing” HERE.
With this concise and up-to-date view of the upcoming QuickBooks landscape, we hope you have the knowledge available to make the right decision for your organization. If you find yourself still wanting more guidance, we’re here to help. Let us know what you need and we will help find a solution that works for you.