Free Is The New On Sale For Online Accounting

In a gambit to shoulder into the online accounting market, Ubikwiti does QuickBook's Small Business United offer one better with free SaaS bookkeeping for "single-user SMBs."Late last month, Intuit introduced a so-called stimulus package for small business. Small Business United included approximately $1,000 in free software offerings. An interesting package to be sure and the obvious strategy was to lure business owners to QuickBooks and Intuit offerings and then start the meter running once they were entrenched -- a time tested marketing strategy.

Another player in the SMB SaaS financial space, Ubikwiti, is also using FREE to pull in customers. The difference being that Ubikwiti's service is free and stays free with one caveat -- single-user SMBs. If you have more than one user or need any bells and whistles, you buck up (albeit at $4.99/month).

The target in the Ubikwiti crosshairs is QuickBooks Online Basic ($9.95/month). Witness this statement from Ubikwiti CEO Tim Loving: "Ubikwiti Online Software for SMBs, although free, does not skimp on features and functionalities. It is much more than a very basic system to track money in and out like QuickBooks Simple Start Free Edition. Ubikwiti's Online Software for SMBs is a realistic alternative to QuickBooks Online Basic, with the notable exception that Ubikwiti Online Software for SMBs is free."

Ubikwiti Price Comparison Grid

As with all statistical contrasts, the numbers included drive the results.

QuickBooks Price Comparison Grid

Looking beyond the price war, the other flash point in the SaaS bookkeeping battle for SMBs is simplicity. Kevin Reeth, CEO of Outright, said as much in a recent bMighty interview, commenting, "When we look at the competitive landscape, it's far too complex."

Outright, which offers free online income, expense, and tax deduction tracking, sees plenty of space in the market despite Intuit's market leadership. Said, Reeth, "People generally recognize Intuit as the 800-pound gorilla of financial software, but there are 4 million small businesses using QuickBooks and 3 million using Quicken. There are 27 million small businesses in the U.S.; 7 million is not a dominant position. The reality is that less than 50 percent of SMBs use accounting software."

And though free offers and loss leaders may induce some business owners to try a different financial software (SaaS or on-premises), the usability of the software is what will make them long term customers.

More From bMighty: Q&A With Kevin Reeth Of Outright: Using SaaS For Bookkeeping And Tracking Tax Deductions