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Wave Acquired by H&R Block – What Does It Mean for Small Businesses?
Small businesses will likely see little change in the short term from the acquisition of Wave by tax giant H&R Block. Wave’s functionality will be complementary to H&R Block’s tax services as it looks to expand its financial services in a way that is similar to banks or accounting firms. With Wave’s acquisition, H&R Block will be able to offer services to small businesses that include accounting, invoicing, payments, payroll, and receipts. Wave will continue to operate independently and will report into H&R Block; this may represent a signal that Wave’s functionality will be expanded in the future to strengthen the competitive position of the acquisition and to serve businesses of different sizes.
SoftwareReviews tracks the accounting software vendor landscape that includes vendors such as Quickbooks, Zoho Books, and Intuit amongst others in the small enterprise space as contenders to Wave. SoftwareReviews also tracks accounting software vendors servicing medium and large enterprises. Info-Tech research shows that as organizations grow and their needs shift, they will require an accounting software that will support their growth with growing capabilities. Reaching an inflection point in the business growth curve usually coincides with the need for new accounting software with added features and functionality.
Source: SoftwareReviews Accounting Software, April 2019
Our Take
The shift in Wave’s customer base will likely require Wave to expand its offering with its unique business model to meet the growing needs of growing businesses. Customers considering Wave should also consider the following:
- Pace of change of organizational needs. If the pace is faster, consider an accounting software that is positioned for mid-size or larger organizations.
- Broad needs of the organization. If the needs of the organization go beyond accounting and financial services are needed; consider Wave.
- Complexity of the organization. If the complexity of the organization is increasing, use a standard approach to selection and a short list of vendors.
Info-Tech offers a variety of tools to guide organizations small, medium, or large through a software selection. Use SoftwareReviews as a starting point for the vendors to consider as part of the selection process.
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