I have been following the board for awhile but this is my first post. I have been digging into Bill.com (BILL) after seeing a number of posts in monthly/year summaries in the past few months. A number of people on the board I really respect have taken positions and so I took a small 2% position to learn more. Talking to a buddy who is a small business owner and his take is that the clear leader in this space is QuickBooks. That is what he uses and he said he is not aware of another owner in his network that uses something else. Saw this question posted back in early November but didn’t see any response so I thought I would bring it up again - https://discussion.fool.com/been-following-the-board-for-some-ti…
Found this comparison article from July 2021 - https://fitsmallbusiness.com/bill-com-vs-quickbooks/ My takeaways are that BILL users pay more in monthly fees ($39 per month per user) vs QuickBooks ($15 per month). BILL can automate A/P processes and integrate with QuickBooks but it can’t do ALL the accounting features that QuickBooks provides. Examples of gaps in BILL are listed below
-track sales tax collection and payments
-capture and organize receipts
-track activity by class and location
BILL does allow customers to do the following items that QuickBooks cannot
-create approval workflows
So essentially a small business owner would need to buy both services (BILL and QuickBooks)to get all needs met? Acquisition of Invoice2Go likely helps with some of the gaps but does it do all of the items listed above? I just think buying 2 services would be a tough sell for small business owners. BILL is going to have to fight an uphill battle against a clear leader (in my opinion) and lower cost while not meeting ALL of the a small business owners accounting needs.
BILL does have a lot of attractive numbers that this board likes
-164% you organic revenue growth
-83% Gross Margin
-growing customers 22% yoy, transactions 35% yoy, and total payment volume 64% yoy
-85% of their core revenue is from existing customers
-transactions fees really growing with organic increase of 127%
I just am struggling to get over the competitive advantage that QuickBooks has over them as I see it right now. Going to keep studying as I hold my small 2% position. If anyone can help me out with this comparison I would be grateful.