Quickbooks Desktop to be discountinued

Using Quickbooks desktop after Jun-23

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I have a client who purchased QB desktop 2019 and still uses it for internal bookkeeping.  No need to email out anything, and VAT100 reports are ported into bridging software for MTD filing/compliance.  From what I read, this will continue to work, albeit with no support/updates, etc, and some loss of functionality that is not important/ needed.

Other clients on 2021/later version, annual licences, are being 'turned off' from 30-Jun-23 and so forced onto something else.

Intuit has sort of confirmed to me that as long as QB Desktop cannot communicate with their servers, it will continue to work after 30 June.

So I could reinstall it inside a VM without an external internet connection, or leave it on the host and use a firewall program to block all Intuit-related services from communicating in/out.

Has anyone else delved into these matters, please?

 

 

 

 

 

 

 

 

 

 

Replies (23)

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By Catherine Newman
12th May 2023 15:25

I have been burying my head in the sand hoping the problem will go away. I have just discovered I can file VAT returns on behalf of clients using my ASA login details so this may not be an issue.

I would be interested to see what others are doing too.

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Replying to Catherine Newman:
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By Chessaccountant
12th May 2023 15:56

I would be careful with this. HMRC do not consider filing a VAT Return this way as a MTD-compliant filing. I have done it with nil returns, but they won't like it if there are transactions.

Please don't ask me why HMRC allow it if it isn't MTD compliant (presumably because there are no digital links to the data) - you may as well ask why cows can't fly to the moon. HMRC is no longer fit for purpose and on top of that the PAYE and CIS are on strike until June, which doesn't help when you can't get through on the phone and on the odd occasion when you do you are instantly cut off (which counts in their "successfully answered calls" statistic). They are also over 6 months behind the opening of post. It's no wonder they only expect to recover 4% of the estimated COVID fraud.

I could write a book on the s***show that is HMRC right now and I expect I'm not the only one - just ask my colleagues.

That said, to answer OP's question, I was discussing with an IT expert (who is a client on QB desktop - at least until we convert him to Xero which he has now agreed to) yesterday and he agreed that if you keep QB desktop disconnected from their servers you will be access your data. It remains to be seen whether MTD compliant VAT Returns can still be submitted this way, but in theory it should work.

However, if there is an update to HMRC's systems, QB desktop won't issue a relevant update and then you'll be screwed. If you lose access to your data you potentially lose your records which you must keep for 7 years. This means that you are not keeping adequate records so far as HMRC are concerned. I see this as extortion - you can't access your data unless you pay us for it - but who wants and has the resources to take on Intuit, who own QB? Even the ICO is inadequately equipped for this.

My advice: get away from QBD as soon as possible for all sorts of reasons, not least the switching off of support. Export the NL to csv files and keep on a secure server. Use an MTD compatible cloud-based software and your problems are solved.

I leave you all with this happy thought. A client once said to me: "I don't see why I should have to pay Inland Revenue - I live on the coast."

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Replying to Chessaccountant:
By ireallyshouldknowthisbut
12th May 2023 16:28

Chessaccountant wrote:

I would be careful with this. HMRC do not consider filing a VAT Return this way as a MTD-compliant filing. I have done it with nil returns, but they won't like it if there are transactions.

HMRC dont give a hoot about MTD compliance so long as your VAT is right.
Why should they? AFAIK there is no a single investigation or fine being levied for non-compliance.

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Replying to Chessaccountant:
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By Catherine Newman
14th May 2023 13:32

Thanks for the tip.

I thought it might be a way of getting around filing VAT returns for people who needed help quickly eg people changing accountants.

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By Hugo Fair
12th May 2023 15:50

Try https://www.accountingweb.co.uk/any-answers/sage-50-cloud-wont-work-unle...

One of the most commented on posts in the last few years ... and yes I know it's about Sage not QuickBooks, but it's the same underlying (and underhanded) treatment being meted out to people who bought perpetual licences.

There's quite a lot you can do if you're technically minded (actually VERY technically capable and with lots of spare time to invest) ... but in essence as Private Frazer would intone "Doomed, we're all doomed!"

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By jndavs
12th May 2023 23:47

It depends on how they are switching off the software.
If it is programmed to die on 30 June, then all the software needs is to be able to read your system clock. If it is a termination signal from the server, blocking the signal should stop that (but you may be breaking the licence agreement).

The use of bridging software is still compliant as far as I am aware.

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Replying to jndavs:
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By I'msorryIhaven'taclue
13th May 2023 13:45

That's interesting. Looks as though it's the latter, based on the OP's report that:

"Intuit has sort of confirmed to me that as long as QB Desktop cannot communicate with their servers, it will continue to work after 30 June."

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By carnmores
13th May 2023 11:12

frankly this is a scandal, its simply to drive customers to QBO which is considerably more more expensive. fortunately i keep a version of QB 2018 and should be able to continue to use . its shameful that Intuit have done this .

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Replying to carnmores:
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By Hugo Fair
13th May 2023 11:57

"fortunately i keep a version of QB 2018 and should be able to continue to use"

I laud your optimism, but (as per the extraordinary thread that I referenced above) that's what people with desktop Sage 50 assumed/hoped ... before their hopes were dashed on the rocks of corporate greed & shamelessness.

In short they introduced a 'call' that the desktop software makes to Sage's servers (under the guise of checking licence validity!) - and then lock the desktop software if they don't like what they see (basically only subscription now allowed) making your perpetual licence absolutely inoperable!

Not saying QB are doing the same ... but their hopes are clear, so watch out.

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Replying to Hugo Fair:
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By carnmores
13th May 2023 14:14

I am aware and have rough contingency plans in place in case they try and turn off 2018.
It was I believe a one-off payment when I purchased it. But thanks for info Hugo

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Replying to Hugo Fair:
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By paulwakefield1
15th May 2023 09:31

Actually, despite the mire of "disingenuous" information put out by Sage, if you had an old enough version of Sage, it kept on working without a hitch. So maybe the same might apply to QB. But best to research before you find out the hard way!

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Replying to carnmores:
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By I'msorryIhaven'taclue
13th May 2023 13:41

carnmores wrote:

frankly this is a scandal, its simply to drive customers to QBO which is considerably more expensive.

According to a USA article at:

https://www.gentlefrog.com/quickbooks-desktop-subscription-what-this-mea...
"QuickBooks Desktop as a whole is NOT being discontinued. There’s been a rumor going around for years that QuickBooks Desktop is going away or being discontinued. This isn’t true. QuickBooks Desktop isn’t going anywhere.
In fact, it’s been switched over to a yearly subscription.... This means if you’re using any version of QuickBooks Desktop 2020 you’ll want to move to the new subscription model or to QuickBooks Online."

Is there a similar [annual] subscription desktop option available here in the UK?

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Replying to I'msorryIhaven'taclue:
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By carnmores
13th May 2023 14:11

i think not :-(

A clear expression of intent is now necessary from Intuits UK office

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Replying to I'msorryIhaven'taclue:
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By Hugo Fair
13th May 2023 15:39

There are two drivers behind the mindset of these software developers:
1. Ramp up revenues - predominantly by locking people into annual subscriptions (which are easier to manipulate/increase than the equivalent revenues through brand new sales);
2. Reduce costs/licence - mostly via the virtual world of Cloud instances rather than delivery to multiple physical desktops.
Hence their love (almost besotted obsession) with Cloud-based subscription licences ... that do a lot more for their own margins than delivering any discernible benefits for their clients.

So I retain a jaundiced eye whilst awaiting any announcements from QB (or their ilk) ... given that 'desktop' is no longer part of their corporate creed AND that the cost of maintaining/developing a UK version may bend their targeted worldwide RoI.

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Replying to Hugo Fair:
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By I'msorryIhaven'taclue
13th May 2023 16:34

I read somewhere that the Sage Desktop replacement, even though it calls itself cloud software, actually stores its data on your desktop computer just as its Desktop predecessor did.

I haven't yet checked the veracity of that. Or whether the processing software resides on the desktop PC or in the cloud.

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Replying to I'msorryIhaven'taclue:
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By Hugo Fair
13th May 2023 17:43

Semantics, schemantics ...
https://www.iqaccountingsolutions.com/sage-50-vs-sage-50cloud.html#:~:te....

Note: source is undated and originates from Gene Pitney's favourite destination.

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Replying to I'msorryIhaven'taclue:
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By jndavs
13th May 2023 22:20

Sage One or Sage Business Cloud is proper cloud software

Sage 50 cloud is essentially the desktop Sage 50 with remote data access enabled. The data is stored locally and sync'd

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By jndavs
14th May 2023 16:59

Try searching this:
FTC Matter/File Number 192 3119

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Replying to jndavs:
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By Hugo Fair
14th May 2023 17:58

Interesting ... I'd heard of this but, as I neither live nor operate in the U.S., hadn't bothered with the details.

However, although I can spot a common thread of claimed misrepresentation, it's really quite different (to claim that your software will function without disclosing all the myriad scenarios in which it won't) ... compared to preventing access to and use of software for a user who has purchased a perpetual licence.

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By jndavs
15th May 2023 13:47
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By carnmores
15th May 2023 13:53

take your point but this is US info

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Replying to jndavs:
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By Hugo Fair
15th May 2023 15:48

Again, interesting ... but not directly relevant here (other than yet another example of the underhanded depths to which these large companies will go to avoid their legal responsibilities).

FWIW: the robots.txt file on its website (that instructed Google to leave TurboTax Free File out of search results) is the 'secret' tool that all major sites use to control what bots are or are not allowed to access on their sites.
Control is a euphemism here for 'instruct' ... and it is the refusal by major AI players to comply with this piece of self-regulation that has many major corporations threatening to sue.

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By Catherine Newman
14th May 2023 13:29

When I spoke to QB a while ago they told me that they just delete the licence number their end and with no licence the software won't work. That was before Christmas and MTD was postponed. I am just hoping against hope that they will see sense.

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