Accountech Bytes: Sage’s strong numbers, QuickBooks’ AI assistant, PDF to Brainrot

AccountingWEB
22 Nov 202407:28

TLDRAccountech Bytes discusses the latest in accounting tech, highlighting Sage's 2024 results with a 9% revenue increase and 97% recurring revenue. The show delves into Sage's AI plans, with 8,000 customers using its co-pilot AI assistant. QuickBooks and TurboTax's parent company reports a 10% revenue increase, with QuickBooks revenue growing by 21%. The payments market sees shifts with UK fintech Modular acquiring accounts payable automation tool Nook. The video also covers new features in QuickBooks, Excel, and the rise of AI study tools like PDF to brainrot, which uses AI to read documents aloud mixed with entertainment clips.

Takeaways

  • 📈 Sage reported strong full-year 2024 results with a 9% increase in revenue, adding another 200 million, and a focus on becoming a 97% recurring revenue company.
  • 🚀 Sage highlighted its AI plans, with 8,000 customers using its co-pilot AI assistant on Sage's Cloud Accounting platform, and future plans for Sage ACT and Sage 50 integrations.
  • 💬 There was a discussion about the monetization of Sage's AI services, with the anticipation of changes in how they will be charged in the coming months.
  • 📰 An opinion piece in the FT's column questioned the technology usage of small businesses, contrasting Sage's customer base with SAP's multinational corporate clients.
  • 📊 Intuit, the parent company of QuickBooks and TurboTax, announced strong first-quarter results with a 10% increase in revenue and a 21% growth in QuickBooks revenue.
  • 💰 The payments market has shown signs of cooling with UK fintech Modular acquiring accounts payable automation tool Nook, and Iris announcing plans to discontinue its desktop products in favor of the Element Cloud platform.
  • 🎉 The program for the 2025 Festival of Accounting and Bookkeeping has been released, featuring topics like artificial intelligence, marketing, MTD, and the budget.
  • 🔄 A shift in the cloud accounting battle to the midmarket is analyzed, with new players entering and existing vendors releasing new products.
  • 🤖 Intuit has released Intuit Assist, a generative AI financial assistant for QuickBooks users in the US, which includes features like conversation and document conversion into financial documents, auto-extraction, and categorization.
  • 📊 Excel has introduced new features like 'clean data with co-pilot', 'group by and pivot by functions', and 'Focus cell application' for better data management and visualization.
  • 🤝 Practice management tool Client Engager has partnered with referral tool RQ, and Air Wallock has partnered with payments platform Moss to streamline global payments.

Q & A

  • What was the main focus of Sage's full year 2024 results?

    -Sage's full year 2024 results highlighted a 9% increase in revenue and a significant boost to a 97% recurring revenue business model, as analyzed on diginomica by Stuart Lin.

  • How many customers are currently using Sage's co-pilot AI assistant?

    -Sage has reported that 8,000 customers are currently using its co-pilot AI assistant on Sage's Cloud accounting platform.

  • What is the monetization plan for Sage's AI assistant in the coming months?

    -While the early adopters of Sage's AI assistant are not currently paying for it, the webinar indicated that this will change in the coming months, with monetization details to be revealed.

  • What was the opinion piece in the FT's opinion column about Sage and its customers?

    -The opinion piece in the FT's opinion column seemed to label Sage's customers as 'minnows' and suggested that small businesses, which are Sage's users, do not use technology, which is considered an insult by the transcript's speaker.

  • What were the first quarter results for the QuickBooks and Turbo Tax parent company?

    -The QuickBooks and Turbo Tax parent company reported a 10% increase in revenue, with QuickBooks revenue growing by 21% and a 177% decline in desktop ecosystem revenue.

  • What acquisition has UK fintech modular made recently?

    -UK fintech modular has acquired accounts payable automation tool Nook, as mentioned in the transcript.

  • What are the plans for Iris regarding its long-term desktop products?

    -Iris has announced plans to discontinue its two long-term desktop products, PTP and key time, and shift its customer base to the element Cloud platform.

  • What is the theme of the 2025 Festival of accounting and bookkeeping?

    -The 2025 Festival of accounting and bookkeeping will cover a range of topics including artificial intelligence, marketing, MTD, the budget, and more, as mentioned in the transcript.

  • What is Intuit's generative AI Financial assistant called and what does it do?

    -Intuit's generative AI Financial assistant is called Intuit Assist for QuickBooks users in the US. It can turn conversations and documents into estimates, invoices, and bills, send invoice reminders, perform auto-extraction, auto-population, auto-categorization, and connect with a QuickBooks expert.

  • How does dex's supplier statement extraction feature integrate with QuickBooks?

    -dex's supplier statement extraction feature allows for the management of supplier statements and integrates with QuickBooks to streamline this process.

  • What new features have been added to Excel to clean and organize data?

    -Excel has added a 'clean data with co-pilot' feature to check for inconsistencies, 'group by' and 'pivot by' functions, a Focus cell application for highlights, and a Color Picker for contrast, among other enhancements.

  • How can businesses use tools like PDF to Brainrot for dynamic data presentation?

    -Tools like PDF to Brainrot can convert documents into engaging video-ready summaries, making it easier for businesses to present data dynamically.

  • How do Brainrot Videos enhance content engagement for companies?

    -Creating Brainrot Video allows companies to transform complex financial and operational content into digestible formats, improving audience engagement.

Outlines

00:00

📈 Accounting Tech Results and Trends

This paragraph discusses the latest financial results from major accounting technology players, highlighting Sage's full year 2024 results with a 9% increase in revenue and a focus on its AI plans. Sage is now a 97% recurring revenue company, and 8,000 customers are using its co-pilot AI assistant on Sage's Cloud accounting platform. There is anticipation for the monetization of Sage 50, a significant product for early adopters who are currently not paying for it. The discussion also touches on a Financial Times opinion piece that seems to underestimate the technological capabilities of Sage's customer base, referring to them as 'minnows' and comparing them unfavorably to SAP's multinational corporate clients. Lastly, the paragraph mentions Intuit's strong first quarter results with a 10% increase in revenue and a significant growth in QuickBooks revenue.

05:01

🚀 New Features and Partnerships in Accounting Tech

The second paragraph delves into new features and partnerships in the accounting technology space. It introduces Intuit's generative AI Financial assistant, Intuit Assist, for QuickBooks users in the US, which can convert conversations and documents into estimates, invoices, and bills, with features like auto-extraction, auto-population, and categorization. The paragraph also mentions dex's supplier statement extraction feature, now integrated with QuickBooks, and new updates in Excel, including a clean data with co-pilot feature, group by and pivot by functions, and the Focus cell application. Partnership news includes Client Engager's collaboration with referral tool RQ and Air Wallock's partnership with payment platform Moss to streamline global payments. The paragraph concludes with a mention of a study tool trend using AI to mix study documents with entertainment clips, suggesting a new approach to studying that combines financial reporting or taxation guides with distracting content like gameplay footage or cartoons.

Mindmap

Keywords

💡Accountech Bytes

Accountech Bytes refers to the title of the video series, which serves as a beacon of truth in the realm of accounting technology. It is a platform that discusses the latest developments and trends in accounting technology, as indicated by the phrase 'Truth through the accounting technology Darkness'. The video covers various topics related to accounting tech, including financial software updates, AI integration, and market trends.

💡Sage

Sage is a major player in the accounting technology industry mentioned in the script. The company has reported strong numbers in its full year 2024 results, with a 9% increase in revenue and a significant portion of its revenue being recurring, highlighting its stability and market presence. Sage's AI plans and the adoption of its co-pilot AI assistant are also discussed, showcasing the company's move towards integrating artificial intelligence into its services.

💡Recurring Revenue

Recurring Revenue is a financial term that refers to income that a company receives on a regular basis, typically from subscriptions or recurring services. In the context of the video, Sage is highlighted as a company with 97% recurring revenue, indicating a reliable and steady income stream which is crucial for business sustainability and growth.

💡AI Assistant

An AI Assistant, as mentioned in the script, is an artificial intelligence-driven tool that aids in various tasks. Sage has an AI co-pilot assistant on its cloud accounting platform, which is used by 8,000 customers. This technology is expected to be integrated into Sage 50, a significant product for the company, and the discussion around its monetization strategy is a key point in the video.

💡QuickBooks

QuickBooks is a popular accounting software by Intuit, which is mentioned in the script in relation to its strong first quarter results, with a 21% growth in revenue. The script also discusses Intuit's new AI Financial assistant, Intuit Assist, which is designed to help QuickBooks users in the US, and the anticipation of its arrival in the UK.

💡Payments Market

The Payments Market refers to the financial sector involving electronic payments and related services. The script indicates that this market has been particularly active with vendors looking to use accountants as a channel or offering payment services themselves. However, there are signs that the market may be cooling, as exemplified by UK fintech Modular's acquisition of accounts payable automation tool Nook.

💡Cloud Accounting

Cloud Accounting is a term used to describe accounting practices that are conducted using cloud-based software. The script discusses a shift in the cloud accounting battle to the midmarket, as new players enter the space and existing vendors release new products. This shift signifies a growing trend towards more sophisticated and specialized cloud-based accounting solutions.

💡Intuit Assist

Intuit Assist is Intuit's generative AI Financial assistant for QuickBooks users. As described in the script, it can turn conversations and documents into estimates, invoices, and bills, and offers features like auto-extraction, auto-population, categorization, and expert connection. This tool exemplifies the integration of AI into everyday accounting tasks, streamlining processes and enhancing efficiency.

💡Supplier Statement Extraction

Supplier Statement Extraction is a feature that allows for the management of supplier statements, which is now integrated with QuickBooks. This functionality, provided by dex, helps in automating the process of handling supplier invoices and statements, reducing manual work and potential errors.

💡Excel Co-Pilot

Excel Co-Pilot is a feature mentioned in the script that enhances Microsoft Excel's capabilities. With one-click functionality to clean data and check for inconsistencies, as well as new functions like 'group by' and 'pivot by', Excel Co-Pilot is designed to improve data analysis and manipulation, making it easier for users to work with spreadsheets.

💡PDF to Brainrot

PDF to Brainrot is a term used in the script to describe a study tool trend where AI tools are used to read documents aloud that one is supposed to study, mixed with distracting clips like mixing paint or gameplay footage. This concept is related to the video's theme as it touches on the innovative, and perhaps counterproductive, use of technology in the context of education and study habits.

Highlights

Sage's full year 2024 results show a 9% increase in revenue, adding another 200 million.

Sage is now a 97% recurring revenue company.

Sage's AI plans were discussed, with 8,000 customers using its co-pilot AI assistant on the Sage Cloud Accounting platform.

Sage Intacct and Sage 50 are upcoming products with early adopters currently not paying for the service.

There is speculation on how Sage will monetize its AI services in the coming months.

An opinion piece in the FT's opinion column compares Sage's customers to minnows, suggesting they are not tech-savvy.

QuickBooks and TurboTax's parent company reported a 10% increase in revenue, with QuickBooks revenue growing by 21%.

The payments market has been hot, with vendors looking to use accountants as a channel to reach customers.

UK fintech Modular has acquired accounts payable automation tool Nook.

Iris plans to discontinue its two long-term desktop products and shift its customer base to the Element Cloud platform.

The Festival of Accounting and Bookkeeping has released its program for the 2025 event.

Intuit has released Intuit Assist for QuickBooks users in the US, a generative AI Financial assistant.

Intuit Assist can turn conversations and documents into estimates, invoices, and bills, with auto-extraction and categorization features.

Dex's supplier statement extraction feature now integrates with QuickBooks.

Excel has introduced a 'clean data with co-pilot' feature to check for inconsistencies with one click.

New functions in Excel include group by and pivot by, as well as the Focus cell application for highlights and the Color Picker for contrast.

Client Engager has partnered with referral tool RQ.

Air Wallock has partnered with payments platform Moss to enhance and streamline Global Payments.

AI tools are being used in study tools, where documents are read aloud mixed with clips of gameplay footage or cartoons.