Microsoft is paving the way for its September release of a small-business accounting application by putting together a host of network and support services targeted at accountants, including the new Microsoft Professional Accountants Network the company is scheduled to launch within the next three months.
The product will take Microsoft into a market dominated by Intuit’s QuickBooks accounting software. IDC ranks Intuit as the second-largest vendor of accounting and financial management software behind SAP AG. But while SAP’s forte is large ERP systems, QuickBooks targets businesses with up to a few dozen employees – the segment Microsoft would like to penetrate with Office Small Business Accounting.
The stand-alone version will cost $200, Microsoft says. Office Small Business Accounting also will be available as part of the Microsoft Office Small Business Management Edition 2006 bundle, which will include Business Contact Manager Update and the 2003 editions of Outlook, Word, Excel, PowerPoint, Publisher and Access. Pricing has not been announced.
To generate interest in the new software, Microsoft is creating the Microsoft Professional Accountants Network, a program that would offer technical support, continuing-education training classes and network resources aimed at certified public accountants (CPA). The program would have two membership tiers, a free level and a $300-per-year level, offering additional technical support and free access to various Microsoft products and services.
As a further enticement, Microsoft also is offering CPAs free copies. Accountants can sign up on Microsoft’s Web site for a free pre-release version. The pre-release version is a full edition of the software with no limitations or expiration date, says Microsoft’s Cindy Bates.
Shafat Qazi, CEO of Microsoft partner BQE Software, says he expects Office Small Business Accounting to win over customers currently using Excel spreadsheets to handle their accounting.
“This will appeal to people who don’t typically use any of the accounting products now, people who feel like they’re not trained enough to use applications like QuickBooks without an accountant by their side,” Qazi says.
BQE, in Los Angeles, makes billing and project-management software. It has been an Intuit partner for several years and its flagship product, BillQuick, integrates with QuickBooks. The newest version also will integrate with Microsoft’s accounting software, Qazi says. In the 15 months BQE has been working with Microsoft on the developing Office Small Business Accounting software, it has emphasized to Microsoft the importance of integration.
“People are no longer comfortable with import/export. They want behind-the-scenes integration,” Qazi says. “It was critical for us that integration be as seamless as possible, so that the end user doesn’t feel like they’re working with two products.”
Office Small Business Accounting is scheduled for a September release in the U.S., with international editions coming later on a yet-to-be-determined schedule. To smooth the new software’s launch, Microsoft is striking alliances and sponsorship deals with accounting-industry vendors. The company also has teamed with Automatic Data Processing, which will integrate two of its small-business payroll services with Microsoft’s accounting software.
Cowley is a correspondent with the IDG News Service.
