Intuit ( INTU Quick Quote INTU - Free Report) recently announced that it has increased the availability of its QuickBooks Business Network solution among millions of small and mid-market businesses in the United States. This move will enable eligible QuickBooks Online customers based in the United States to easily connect with each other in the business-to-business (B2B) network to accelerate B2B payments, leverage automation for simplification and streamlining administrative tasks and get access to better collaboration and connection possibilities.
With the expansion of QuickBooks Business Network’s availability, Intuit will be creating one of the largest B2B networks aimed at accelerating and automating B2B payments while enhancing the overall cash flow of small and mid-market sized businesses. Through Intuit’s QuickBooks Business Network, QuickBooks Online customers raise requests to get contact information provided and updated by their customers and vendors, send and receive invoices automatically without manually creating bills for review. The automation strategy for B2B payments lessens manual work, speeds up payment timings for the small business owners and enables better cash flow forecasting and management.
The QuickBooks Business Network also features accounts payable automation that automatically adds bills to books, once reviewed and approved by the owner after receival of invoices. This feature ensures automatic reconciliation of the books while saving time and effort of the businesses. However, it must be noted that this feature is unavailable for Simple Start customers.
INTU is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The company’s strategy of shifting its business to cloud-based subscription model will help it generate stable revenues over the long run.
Last month, the company entered into an agreement to acquire financial health startup SeedFi. This will enable Intuit to accelerate and upscale its Credit Karma business members’ financial progress through SeedFi’s Credit Builder technology.
In November 2022, the company renewed its partnership with the National Football League (NFL) for another four years. Per the extended contract, Intuit encourages NFL fans to participate, increase awareness on the importance of setting financial goals and celebrate its financial milestones. INTU will continue to act as the official financial and accounting software sponsor of the football league through 2026 and will include additional brands and business operations in support of its business.
Nevertheless, macroeconomic and geopolitical headwinds might significantly hurt small business operations, thereby posing risks for Intuit’s top-line growth in the near term. Higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting the bottom line in the near term.
Zacks Rank & Key Picks
Intuit currently carries a Zacks Rank #3 (Hold). Shares of INTU have lost 29.2% in the past year.
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