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Sasan Goodarzi; ''Don't call QuickBooks an accounting platform'
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Sasan Goodarzi; ''Don't call QuickBooks an accounting platform'

Intuit adds $12bn Mailchimp to expand QBO platform

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Where does accounting software end and CRM begin? John Stokdyk wonders if the answer can be found in Intuit’s latest acquisition.

17th Sep 2021
Editor in Chief AccountingWEB
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US business software giant and QuickBooks owner Intuit picked up a $12bn addition to its portfolio this week in the shape of the email software developer Mailchimp.

Founded in Atlanta, Georgia 20 years ago, Mailchimp rode the email marketing wave to establish a global user base of 13m. Around 800,000 of those users pay for enhanced services, with a 50:50 split between the US and the rest of the world.

Intuit has made regular acquisitions to bring new functionality into its orbit. This tradition goes back to 1993, when it acquired US tax software developer TurboTax for $225m. The cloud-based personal finance app Mint followed in 2009 for $170m and the timesheet app Tsheets for $340m in 2017.

Since taking over as CEO in 2019, Sasan Goodarzi raised the stakes with a $7bn deal for consumer lending platform Credit Karma in February 2020. At $12bn, Mailchimp tops that deal as the company’s biggest acquisition yet.

Business growth platform

Explaining his thinking on Intuit’s investor relations page, Goodarzi’s said Mailchimp fitted into his vision of QuickBooks not as an accounting app, but an end-to-end business platform: “Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers.”

As Mailchimp is integrated into the QuickBooks offering, that platform will be able to handle ecommerce, marketing/CRM, analytics, collections, payments, funding and compliance, the company said.

As Seth Feinberg noted on our US sister site AccountingWEB.com, what Intuit did not make clear was how Mailchimp would hook into QuickBooks Online Accountant (QBOA) client management features and the broader network of accounting ProAdvisors.

The MTD opportunity

In the UK at the moment, all roads lead to Making Tax Digital. With signals emerging from the US software giant that MTD ITSA functionality may be on the way for QBO, Mailchimp could play a helpful role in the client communication and deadline-chasing workload that will accompany the transition to the new income tax regime in 2023.

AccountingWEB has approached Intuit for clarification about both the Mailchimp acquisition and broader MTD strategy. We will pass on any further comments or information as soon as we hear back. In the meantime, let us know your explectations for the QBO platform by commenting below.

Replies (8)

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By wilcoskip
19th Sep 2021 21:32

Can’t help feeling a bit sad. All credit to the people who built up the business, and who seem, from interviews I’ve heard, like decent and grounded people. They created a great business that provided an excellent service, and now they’ve cashed out. Good on them.
But it’s been bought out by a larger company who won’t treat the product or the customers with the same care. Shades of IRIS.
It’s the way of the world I suppose. My plans of selling up to go and run a tea room in Devon are seeming more and more attractive by the week.

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Replying to wilcoskip:
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By Vallery Lee
24th Sep 2021 19:27

A tea room in Devon sounds good - but would you trust another accountant to deal with your tax??

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Replying to wilcoskip:
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By Vallery Lee
24th Sep 2021 19:27

A tea room in Devon sounds good - but would you trust another accountant to deal with your tax??

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Replying to Vallery Lee:
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By wilcoskip
25th Sep 2021 19:09

Oddly enough, I've had some fun with sketching out the systems and integrations, and I expect I'd end up running the admin and finance, while my wife handled front of house and staff. It's a world away from what I do at the moment, and that's what's so attractive about it.
Just imagine it - a business where you're giving people stuff that they actually want and enjoy, rather than what they need and partially resent (in the sense that we're telling them how much tax they have to pay.) The mind boggles.

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By NewACA
23rd Sep 2021 10:42

I understand completely why Intuit have purchased mailchimp.

Mailchimp is basically an enormous mine of email addresses. Intuit have basically purchased a massive marketing list to advertise Quickbooks.

You might be thinking, ah, but under GDPR they cannot access that and start sending out and contacting mailchimp users about QB - I'm afraid that is not my experience of US companies.

Many US companies from my experience don't give "two hoots" about privacy, I constantly get emails and phone calls from USA based businesses. They are a lot more in your face and gun-ho compared to UK businesses. The US have privacy laws like us, but are a lot less likely to follow rules like we do here.

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By AndrewV12
23rd Sep 2021 10:57

Where did QuickBooks get 12 Billion Dollars from.

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Replying to AndrewV12:
Richard Sergeant
By Richard Sergeant
27th Sep 2021 20:02

AndrewV12 wrote:

Where did QuickBooks get 12 Billion Dollars from.


By being being completely dominant in the US with QuickBooks and TurboTax

Their cash pile has been burning a hole in their pocket for sometime.

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By Cantona1
23rd Sep 2021 11:18

QBS (ON-LINE) is riddled with Bugs. I stopped calling it as an accounting software. The CEO has not looked at UK's version.

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