 Live from San Jose, California, in the heart of Silicon Valley, it's theCUBE, covering QuickBooks Connect 2016. Now, here are your hosts, Jeff Frick and John Wall. And welcome back here to theCUBE, the SiliconANGLE TV flagship broadcast here, where we extract the signal from the noise it shows, trade shows all over America, and today we're streaming live from San Jose at QuickBooks Connect 2016, along with Jeff Frick. I am John Walls. We thank you for being along for the ride here, as we start to wrap up our coverage here, Jeff, and kind of sad to say that. This has been a great show. A lot of great energy. We're excited to have Matt Riesel on. Matt Riesel, CEO of T-Sheets. Welcome. Matt, you take care of this age-old problem, right at time tracking for people. It perplexes small businesses, it ties them up in knots, and yet you've been able to kind of unweave that tangle and make their life a lot easier. Talk first about your company, about T-Sheets, and then you had some news that you announced yesterday with QuickBooks, so let's do one step at a time. Got it, so thank you, and thank you for having me on your show. It was great to see both of you. You bet, absolutely. So T-Sheets is a time tracking system designed for small businesses. So let's say you had a business with, let's say, 20 employees, and you needed to either schedule the employees out, or schedule jobs, so T-Sheets does that portion, and then they needed to track time against projects, customers, tasks, service items. So that's exactly what T-Sheets does. And then you take that time, and then you send it to a payroll system like QuickBooks online payroll. And then the relationship now with QuickBooks, because you've stepped up your game a little bit. Now you're going to be embedded on their platform, and I imagine that reach for you is a great thing, and obviously for the small business customer you're serving, it's a wonderful thing. So time tracking in general is an unsolved problem on the globe. It's, I mean, in the U.S. alone, there are over two million small businesses that are still using Spreadsheets, and Paper to track and schedule their employees' time. But specifically what Intuit has done is literally it's the first of its kind. They've built a plug-in architecture where T-Sheets functionality is actually embedded inside of QuickBooks online, and what that does is it actually completely blurs the line between where QuickBooks online ends, and where T-Sheets begins, and then where QuickBooks, where T-Sheets ends, and where QuickBooks online begins. And what happens is, you know, typically what would happen before this is you would track your time in T-Sheets, and then you would have to go to a different screen and send it to QuickBooks online. Like, and you knew you were in two different applications, but now they're inside of T-Sheets, and they don't even know it. They're just working inside of the workflow of QuickBooks online. And so ultimately what that does is it takes the payroll process, which is very pain-blowing. If you look at, like I say, a payroll product itself, it's basically an aggregator. So it all does, it takes information out and spits out a paycheck. The real complicated part of payroll and what takes so much time is the process of taking the time sheets and then hand entering those into the payroll system, right? And so we have completely eliminated that step. I find it ironic that in an accounting show, we're talking about eliminating double entry, because really what you guys are all about is just enter it once, not enter it over and over and over, because there's so many little tracking mechanisms, but ultimately it's got to get into the mothership system so it can go into the invoicing and the payment system, and you basically are taking that all away. You are exactly right. And it's even decentralized data entry because it's the employees that are entering the time, right? And so, for instance, if you were to put yourself in the shoes of any small business out there, you were to ask all the 20 employees, let's say, hey, what is your accounting system? They would be like maybe one or two of them would know, or what's your payroll system? Maybe like one or two of them though, but you ask them what the time tracking system is, all of them know, because they use it multiple times every day. And what if you ask them, how much do you like your time tracking system? What are they going to say? You know, what's interesting is that's one of the foundations that Bill teach, because you ask most employees, they're like, you know, how's your time tracking system? And they hate it. They can't say like, oh God, it's so painful. Well, our slogan is we heart, we love employees. And while we do love our internal employees, that's about the actual employees that use T sheets. One of our largest referral sources, believe it or not, are the actual employees themselves. When they go switch companies, and they have to use a different time tracking system, they recommend T sheets to their employers. That's great. All right, so what's your secret sauce? Or what makes you unique in this marketplace then, and that you think QuickBooks found so attractive to bring in? So, I mean, the secret sauce, I think it changes, it doesn't change. The secret sauce is about relationships, it's about building a product that works, and then it's about delivering something that actually matters that's valuable. It's funny, you think it's only time tracking, right? But put yourself again in the shoes of a small business owner. On average, we will save a small business owner between 3% and 11% on their overall labor expenses. And that's usually the single largest line item on their P&L. So when business owners come to us, they're typically emotional. So back to your secret side, Dave. That's great, well, especially if they're a business that has time tracking, that means it's probably not a manufacturing business. People time is what they're probably selling as their core. It's plumbing, it's landscaping, it's construction, it's whatever, right? Well, it is service, so it's service-based companies certainly, but we're actually in every vertical. That's why they chose to embed T-sheets, is that we don't just apply to one vertical, we apply horizontally to all of the different verticals. And on December 1st, there is a massive change coming out that's going to affect over 2 million businesses. It's called FLSA, Fair Labor Standards Act, where the threshold of salaried employees goes from 22,000 to 47,500. So if you are a salaried employee and you make less than 47,500, your employer has to pay you overtime. So even though you're salaried, you have to pay them overtime. Well, the only way to know if they're overtime in overtime is to subtract their time. That's right, right. That's big news. So what about QuickBooks and Intuit as a partner? I assume you had a relationship before this, but really now integrating your application inside. What does that really mean for you, for T-sheets? And how have they been to work with to get that done? We have a four or five year long relationship with Intuit, and it starts all the way at the top to Brad Smith is a friend. I consider him a mentor. We spend time together, and he's somebody that literally is magical. And that relationship goes throughout the entire organization. And one of the reasons that there's been that kind of alignment is that we're customer oriented. Like if you talk to Brad Smith and you sit him down, he cares, he literally cares about the customer. He cares about the accountant and helping them be successful. And so as a result, our companies have worked really well together. So yeah, that culture, it really is, and it might be a cliche to say, but it really is, it permeates throughout this entire hall and throughout the company. Everybody we've talked to from Intuit and even their partners and the various vendors, everybody has one focus, right? And it's not on themselves, it's on the client they're serving. And so how important is that you think, as you look for relationships and as you look to expand your service and your products that you're looking for people that kind of like-minded culture. It is, it's fundamental I think to the success of any kind of partnership. There has to be alignment. And our core, like our North Star, and it's who I am as a business leader, it's who I am as a professional, who I am as a CEO is I love to help other people and other companies succeed. And that's part of our product mission and that's a part of the culture of Intuit. And so it's essential. And what's technology doing for you or what do you think it can do for you to make what you do even better? Because it sounds like you've built a better mousetrap. People are using it, it's being deployed. You had the big announcement yesterday with QuickBooks. So for you now it's like, all right, you can't say problem solved, right? Otherwise you get overrun. So what's that next iteration for you and then where's the technology play come in? You say, okay, we need to figure out how to do this with that. So very, it's a really good question. And we have some, I mean, basically talking about our product roadmap, like where are we going to take the product basically? And wow, I mean, the list is very long. So no, I mean, we're hiring. So we have about, you know, 150, 160 employees right now. By next year this time, we'll have probably over 300 employees. And the company is doubling every year right now. We have for the past four years straight. And so one of the product, so one of the things that we think we can do is we think we can get so good at time tracking and being able to predict when mobile employees want to clock in, what jobs they want to clock into. We think that we can start eliminating even some of their interactions with our product, right? So we actually, and through validations, right? So saying, hey, do you want to clock in here and after a validation period? And it'd be permission based, but you could almost eliminate them even needing to interact with your software. You start clocking them in and out of projects and jobs as they go throughout the city. How cool would that be? Well, especially you think just like the exercise trackers, right? They guess. Ah, it looks like you're working out. We just logged this and you had the geolocation. Leveraging these things is it will really be powerful. That's exactly right. So recognizing familiar routes, recognizing familiar time patterns, recognizing familiar behaviors, all that, integrating all that into an application that takes over, basically for the user. Yes. And you know what's important is you said the word integrate and people use that word I think very loosely because there are data integrations and then what they say is that there is a seamless integration, which is not the truth. But I will tell you because of what that plugin architecture that QuickBooks online just recently did, that actually creates a true seamless integration. They have no idea that they're switching. So Matt, one of Malcolm Gladwell's messages yesterday in the keynote was our greatest strength is also our greatest weakness, right? Depending on which side of the coin is David and Goliath. And you like to solve problems. Unfortunately, you've caused a lot of problems yesterday. So I don't know if you remember from the keynote, but we walked out and there were 5,000, 5,000 lone socks. And I told my wife, we had a lot of conferences. I've never seen this great technique to get people to come back to the booth to find the missing socks. I didn't realize that. I'm glad you brought that up because I felt really kind of stupid, honestly. I got home, unpacked my bag and reached in the pocket. Oh, I've got those socks that I found today. I didn't know that. So I took it out. Why do I have one sock? What the heck happened here? Did I drop it? Did I lose it? Whatever. So you've solved a great real problem. Well, I'll tell you, it was a genius thing. God darn you. You know, it always caused a problem. I'll tell you, we have an unbelievable team. Like they're unbelievable, you guys. And they care about what they create. They're doing the best work of their lives and they come up with ideas like this. It's amazing. Yeah, it's good stuff though. It's a good one. Thanks for joining us. I know you got a scoot back to Boise. Yes. Perhaps, but congratulations on your big announcement here. I'm sure that this is the next great step for what is a very well-run company, the number one run company in all of Idaho, I believe, or Boise. Number one employer. Yes. Congratulations. Jeff and John, thank you so much for having me on your show. You bet. And it was a pleasure to talk with you. It was a pleasure. Safe travels home. And an extra sock, be nice. Yes, we got you. I got to go to the booth and get my other match. Back with more. TheCube continues here live from San Jose.