Microsoft to drop Office Accounting product, services

By | October 30, 2009, 7:28am PDT

Starting November 16, Microsoft is ending distribution and sales of its Microsoft Office Accounting product. Company officials began notifying customers of the decision on October 30.

All Microsoft Office Accounting products in the UK and North America are affected by the decision, including Office Accounting Express, Office Accounting Standard, Office Accounting Professional, Office Accounting Professional Plus, Office Accounting 3-user and Small Business Accounting.

Here’s the back story as to why, according to a statement e-mailed to me by a company spokesperson:

“After evaluating the product over the past few years we have determined that other Microsoft offerings such as free templates in the Office system used with Excel and the Dynamics product are able to meet our customers’ needs. The Office Small Business web site has links to free templates for small businesses, such as invoices, expenses, time sheets, budgets and more and Microsoft’s Small Business Center is also a great resource for small businesses.”

Microsoft officials said that existing Office Accounting customers will get five years of mainstream, free support and five years of extended, paid support. Those who recently bought the product can return it for a refund within 30 days of purchase. (Details on how to return the activation key are here.)

The add-on services that are part of Office Accounting, including online sales from eBay and credit profile from Equifax, will no longer be available after December 15, 2009. The credit-card-processing services and service allowing users to order compatible checks and forms are still going to be available, however. In addition, according to a Frequently Asked Questions document on Microsoft’s Web site, “your customers will still be able to pay emailed invoices directly through PayPal.”

In the UK, as of October 30, Microsoft parter Mamut is taking over product support for Microsoft Office Accounting users. From an update sent to me by Mamut:

“In addition to receiving ongoing customer support from Mamut, current users of Microsoft Office Accounting will be offered a free upgrade to Mamut Business Software solutions. Microsoft will no longer distribute Microsoft Office Accounting in the UK as of November 16, 2009, but Mamut will continue to invest in product development and services to ensure an easy transition for the approximately 100,000 registered users of Microsoft Office Accounting in the UK.”

Update: Microsoft is not disclosing how many total existing customers it has for Office Accounting. (I asked.) I also asked Microsoft whether it has a U.S. support partner in the wings and received this response from a spokesperson:

“Microsoft is considering possible partnership opportunities for qualifying ISV partners in the US; however, we do not have anything to announce at this time. For small businesses, free templates in the Microsoft Office system can be used in conjunction with Microsoft Excel. Mid-sized businesses have the option of using the Microsoft Dynamics ERP products.”

Microsoft has discontinued a number of its consumer and small-business offerings in recent months. In June, Microsoft said it was discontuining Microsoft Money. It also has dropped its Digital Image Suite and Encarta from its line-up.

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

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RE: Microsoft to drop Office Accounting product, services
jackson1984-24316069205748857739440257893812 10th Oct
Unbelievable, this can be just what I accustomed to be scanning reebok nfl jerseys for! This submit just saved me alot of searching near to
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Dumb
djwyldeone 30th Oct 2009
What a dumb move their Accounting software was one of the best products they had.
0 Votes
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DUMB: ain't that the truth
JMJohnston 31st Oct 2009
I am simply amazed that Microsoft would actually push me to QuickBooks!!! My goodness, the base price to use the product starts at $190 PER MONTH, WThellNO!!!
0 Votes
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Anyone notice a trend?
Oknarf 30th Oct 2009
Dumping Money, dumping Office Accounting, and all at a time when the Feds are increasingly regulating Financial firms. While MS is clearly not a "Financial" Company it looks alot like they are making sure that they don't wade to deep into waters that would put Barry in charge of their salaries.
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Swing and a miss...
jasonp@... 30th Oct 2009
I'll bet you sat up all night thinking that story up. What is happening is what should have started happening a decade ago...Microsoft is starting to trim some of the fat that has been forcing them to take sorely needed resources away from their core business. I'd argue that they need to go after the ERP/MRP section of their business next. That's another vertical market Microsoft has no business even trying to play in. If they can ever get back to the core product lines of operating systems, office productivity applications, developer tools and a reasonable set of server applications (database, email and infrastructure management tools) they may well once again become a company known for innovation and quality. As it stands today, they are far too spread out to be great at anything.
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Agreed
crazydanr@... 30th Oct 2009
To many pots on the stove, they're losing focus and spending resources on a lot of small projects. I did kind of like the product though - it's a shame they couldn't spin it off.
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Spot On
happyharry_z 30th Oct 2009
Like the other poster to your message, it is a shame. It was a good product. Now I'll have figure out how to move Quick Books.
0 Votes
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You are Right
Jim Parson 30th Oct 2009
However, mt question is what was MS mindset at the time they introduced MS OA and what changed?
0 Votes
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Microsoft Money and Office Accounting were also-rans in their respective categories. In the case Office Accounting, it wasn't a stand alone product, users also had to have the latest version of Microsoft Office which made it very expensive when compared to Quickbooks, the best selling package on the shelf.
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Quickbooks
Rick_R 30th Oct 2009
Years ago I tried a full-capability trial version of Quickbooks. I hated it. I called them to complain about the interface.

The person's response was, "You have formal accounting training, don't you?"

I replied, "Yeah, how did you know?"

He said, "Everyone with formal accounting training hates our interface. You are not our target market. People who use our product have no accounting training. They want an interface that looks like forms they are used to. You'll like something like PeachTree or DAC-Easy."

These products know their target market very well and aim for it. Also, there is no standard interchange format. Those factors make it very difficult for anyone to break into a market.

(Can you say ... Adobe Photoshop and Adobe Acrobat? ...)
0 Votes
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You are correct, Quickbooks is designed for the non-accountant. It is aimed at small business people that have never heard of double entry accounting.

They use a propriety file format more or less to keep you locked in, a la Microsoft Office formats (AFAIK Microsoft has never released the specs for their DOC or XLS formats, although OpenOffice has done a good job of reverse engineering them).
0 Votes
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What would turnkey Office Accounting products
Snooki_smoosh_smoosh 30th Oct 2009
have to do with the Feds? Talk about a reaching comment.

The reason for the discontinuing of these products is that people likely already have an affinity to much more mature products such as Quicken and Quickbooks, which cater to small businesses, and have a clear support channel. With MS and their accounting software support is well ambiguous at best.
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Wow, I never thought about that
GuidingLight 30th Oct 2009
And here I thought that there really was no money in those software offereings for Microsoft, so like any smart company these days, if it does not have a future beyond a tiny nitch, then get rid of it.

Plus I never realized that creating finacial software would be viewed the same by the government as actually using the software in finacial institutions.

So Microsoft would be taken over by the government if the end user entered false figures into the software.

I see your point.

(not really)
Very sad. We use this together with RMS for small Mom and Pops Grocer Stores. Intuit's Quickbooks is the only selection now it looks like. QB is nothing like MS Accounting, and well they are walking away from a market again that if the did a little better marketing in they would do great. Oh well another thing for me to learn like always Oops on us selecting Accounting from MS. I guess for over 200+ Stores so far get to change to QB..man I hate INTUIT!
0 Votes
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Intuit is King of the Hill
Jim Parson 30th Oct 2009
I have installed PT, QB, and MS OA. Microsoft should never have introduced a product they were not going to stand behind. Either _ _ _ _ or get off the pot.
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This actually was known for quite some time. It appeared on "Directions on Microsoft" sometime this year earlier (at least 6 months earlier if I remember).

And the real reason of course is they couldn't compete with Intuit.
0 Votes
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Peachtree?
alokgovil 30th Oct 2009
How does Peachtree compare to QB and MS-Accounting?

Do these alternatives support importing data from MS-Accounting?
0 Votes
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Sage verses Intuit
Jim Parson 30th Oct 2009
Peachtree will go the way of Office Accounting. The user interfacefor QB is better than PT and QB has better support than PT
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Good move
kb.kanore@... 30th Oct 2009
What Microsoft is today, one big part was played by
developers using VB/Office (Access) tools to develop
accounting and Inventory program. After Microsoft
bringing its own product like (Accounting express for
free) and other similar products it antagonized them.

I think this step is in good direction for two reason,
developer community (including corporation developing
accounting apps) of this application has to not fear
and MS can focus on core business.

Microsoft made the mistake when they introduced Office accounting in the first place.
0 Votes
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I don't get it - why would they be dropping a product,
less than a month after the SP2 came out for it?

(db)
The product didn't need to be dropped, it needed to be
slimmed down and turned into a nippy mid-range
product, in direct competition with Sage. Why didn't
MS do that?

We desperately wanted to like MS Accounting, and it so
nearly ticked all the boxes. But it was a huge,
unwieldy product. A simpler product would have sold
us. The big deal-breaker: stock management. The only
way to input stock was to enter it line by line from a
purchase invoice. A horror story for us; not suited to
our business at all.

And no - smaller businesses are NOT catered for by
Excel templates. What do they take us for!

We still don't like Sage systems but they are all we
have. Will some creative person at MS please pick up
MS Accts, chop it down to basics, let the user
customise it (even ASK them what they want)- then you
WILL have a product that sells.
0 Votes
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I give up
Tech Maven Updated - 31st Oct 2009
I purchased Office 2007 Ultimate, for my XP pro box, full non-upgrade versions of both for my desktop and found Office 2007 runs super slow compared to Office 2003. I purchase Office 2007 Pro, for my Vista Ultimate laptop, full non-upgrade versions for both. BOTH have advertising in Accounting! I HATE HATE HATE that (saw nothing about that before I purchased!) but I could not make either one work (database interfacing issues, errors in the event log). I gave up on it, like I've given up on MS itself, even though I've purchased every single OS system MS has made starting from Windows 3.1 (except for NT, went with 2K instead). Last straw was when I very recently had to pay $75 for MS support with a Vista Ultimate *OS* problem (less than 2 years old!) only to be left with a blue screen that was only fully resolvable by a restore of a HD image I'd had the forethought to create (and I eventually found the problem, a setting, all by myself). No, I did not get my $75 back, either. I'm fed up! I'm *not* buying anything more from MS, I'll keep XP and Vista but THAT'S IT from MS, I swear it. I kept expecting security issues to go away, but there are still new "exploits" all the time. After all those incarnations of the OS, huh. The fix for any *OS* problem is not to address the problem but to do a restore or repair-reinstall! And charge me $75 to tell me that! Yea, right. Then, something I purchased (and I paid a higher price to get Accounting) gets discontinued and never worked for me regardless (and had ADS!) Enough. When my XP and Vista (and Office 2007) can no longer safely be put on the Internet then I'm moving away to some Linux distribution and Open Office. No, no! I'm NOT going for how great an improvement Win7 or OfficeWhatever is or will be over what I now have. I been taken in by that way too many times now.
0 Votes
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These people at Microsoft ARE NUTS. I have been really happy with the SBA program. I started out with the MS product from Great Plains, back in the mid-nineties. The MS folks let it go by the wayside, until it was re-introduced about six years ago and I couldn't wait to get my hands on it.

The shortcoming-in-chief is the add-on products tried to run with it, such as "Time & Bill Professional."

Complexity should not be confused with capability.

I have been a loyal customer and this reminds me of when Computer Associates had SuperProject, one of the greatest project management tools in the world (for its time) who never put in the built-in graphics capability to make things happen and left the end-users to suffer.

As far as support goes, it is now time to either develop a transition plan over to the Intuit product-line or hang-in there until Microsoft comes out with a new product.

Steve Ballmer, you just screwed a bunch of consultants who rely upon your product. The two groups of people you don't want to screw with is consultants and the government. By the way, I am sure you'll be hearing from a number of attorneys who use your product.
So sad...first they killed my MS Money, then I switched to Accounting. Now they have killed that as well. Guess I will have to use an free online service. Can't believe MS doesn't want us to pay for software.
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Whither Goest Thou?
grax 3rd Nov 2009
I thought Microsoft Money was one of the more useful products that they put out. As someone who travels a lot and has bank accounts in three European countries Money was (still is) handy for keeping track of personal finances.

Sadly, it's demise has resulted in at least one major UK bank stopping support of .ofx in their statement download function. All they offer now is csv!

Okay, I found a utility that converts these pesky files but the average punter would have no idea where to start looking. No good asking the bank - they don't reply to emails.

An alternative for personal/small business use might be GNUCash. Quirky but it's free and it works.

All in all, one suspects that "Customer Support" is not particularly important either to Microsoft, or Britisk banks.
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Why chop Office Accounting now?
rootsmusic 9th Nov 2009
Why is Office Accounting being selectively chopped when other Office products (like Office Publisher) have similarly low sales? Microsoft should have included Office Accounting into its Small Business edition of Office 2007.
0 Votes
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I think Microsoft should very seriously consider spinning Office Accounting off. Apparently some discussion around that thought is under way:

http://blog.seattlepi.com/microsoft/archives/184131.asp

It was a mistake and is really damaging for those small businesses and Microsoft small business partners that trusted Microsoft to stick with it. If Microsoft doesn't spin Office Accounting off their overall credibility in the small business space will be damaged heavily.

I remember when the product launched and both Gates and Ballmer said (I have the transcripts) "we are committed to seeing this through to success", yeah right. There is no way an accounting app. could even begin to achieve any sort of success in just 4 years (with bad marketing to boot).


0 Votes
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RE: Microsoft to drop Office Accounting product, services
jackson1984-24316069205748857739440257893812 10th Oct
Unbelievable, this can be just what I accustomed to be scanning reebok nfl jerseys for! This submit just saved me alot of searching near to

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