Update10/17/2024: Intuit has since removed the ad campaign, but the promotion is still running. Update 10/26/2024: Intuit CEO Sasan Goodarzi apologized to Intuit Connect audience for the campaign.
Intuit's latest move with their "Tax Breakup" campaign is nothing short of a slap in the face to independent tax professionals everywhere. By aggressively promoting TurboTax and offering to undercut Tax Professionals fees by 10%, Intuit is not just competing; they're blatantly trying to poach our clients. This campaign is a glaring example of how Intuit, once a trusted software provider, is now turning into a direct competitor, threatening the livelihoods of countless independent tax preparers.
Let's Look at the Ad, shall we?
The details of this promotion is available at their website here
This campaign has gotten the attention of The National Association of Tax Professionals (NATP) who is rightfully up in arms, and so should every accounting professional who values their client relationships. you can read their press release here. " This campaign also goes against a key component of Intuit's business model – selling professional preparation software to the tax professionals they now seem to be undermining.
Intuit professes to back accountants, yet their actions speak otherwise as they steadily chip away at the trust and foundation of our industry. By stepping into direct tax preparation services, they're not only crossing ethical boundaries but also devaluing the dedicated efforts of tax advisors each tax season. They argue that this service aims to attract price-sensitive clients—those whose loyalty hinges more on cost than on relationships. In truth, these aren't necessarily the clients we'd want in our portfolio anyway.
What does Intuit have to say about it? According to the Woodard Report, Jeff Davis, Director of US Communications at Intuit said, "The TurboTax campaign promotes full-service tax preparation by a local tax expert with the ability to maintain a multi-year relationship with the tax filer." and then goes on to reiterate all the positive historical things they've done with the accountant community.
Update: Sasan Goodardi apologizes for the Tax Breakup Ad
At Intuit Connect, Intuit CEO Sasan Goodardi emphasizes the importance of relationships and accountability within the company. Addressing both successes and mistakes, Sasan acknowledged the company's commitment to learning from errors and prioritizing customer experience. He highlights Intuit's efforts to support experts via their virtual platform, aimed at enhancing tax-related services for consumers. The company aspires to maintain trust, transparency, and high-quality service, underscoring that they are dedicated to working alongside their clients to foster growth and innovation. Sasan concludes by reaffirming their intent to continually improve and uphold their commitments to customers and partners. Here is an unedited recording of his remarks.
What do you think of his remarks?
This goes beyond mere competition; it's about survival. Intuit's approach to blending AI with human services may seem cutting-edge, but it poses a direct threat to small firms and solo practitioners. Following closely on the heels of this campaign are ads seeking tax preparers to join their ranks. Essentially, you could end up working for the very company that enticed your clients away, only to serve those clients at a fraction of the revenue.
The message is unmistakable: adapt or risk obsolescence. But at what expense? Intuit's moves may alienate the very professionals who were instrumental in building their success, leaving us to deal with the fallout. Let's examine the steps Intuit has taken in recent years that have adversely affected the accounting community:
- Creating QB Live Services to offer Bookkeeping or QuickBooks Training that overlaps independent practitioners
- Discontinuing Accountant centered Payroll services Desktop and Online to move towards a model of "One entity, One Subscription"
- Lowering or Removing Accountant discounts on products and services that accountants recommended.
- Aggressive sales practices through price increases and processes to "encourage" QuickBooks Online adoption.
- The discontinuation of the Intuit Trainer/Writer network. This was a group on industry professionals who partnered with Intuit to create and deliver Intuit training for online and in-person training events.
- Shifting the "benefits" the Reimagined ProAdvisor Program tiers to be most beneficial to those who adopt the cloud accounting platform. Most points are received by firms who add new and bundle Intuit services
The message has been loud and clear for a while now: the future lies in the cloud. The capabilities of online platforms surpass those of traditional desktop environments, making integrations and overcoming obstacles smoother. However, the reality is that accountants often find desktop tasks more efficient than their online counterparts, and this is fueling frustration. Contrary to what Intuit might believe, accountants aren't as keen on constant change. The rapid pace of these changes, highlighted by the latest developments, shows that Intuit is continually raising the bar for those grappling with the transition.
For those feeling uneasy about this new shift, the solution is straightforward: enhance the value of your services. Let those swayed by price alone depart, allowing you to concentrate on clients who truly appreciate your expertise. It's time for us to stand our ground and demonstrate to our clients the unmatched value of personalized, professional tax preparation. In this swiftly evolving landscape, we must distinguish ourselves and remind our clients why they initially chose us. While Intuit may have substantial resources, they can't replace the trust and expertise we provide—especially as that trust is chipped away with each new offering they introduce.
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