- User-friendly and intuitive interface
- Cloud-based access for remote work
- Automated features like invoicing and expense tracking
- Integration with numerous third-party applications
- Comprehensive reporting and inventory management
- Higher cost compared to some competitors
- Learning curve for users unfamiliar with accounting principles
- Some advanced features limited to higher-priced plans
QuickBooks Online is a robust accounting solution suitable for small to medium-sized businesses. Its user-friendly interface, cloud accessibility, and extensive features like automated invoicing and expense tracking make it a valuable tool for managing finances. However, the higher pricing and potential learning curve may be considerations for some businesses. Prospective users can utilize the 30-day free trial to determine if it aligns with their accounting needs
Imagine you’re running a small business and you have to handle invoices, expenses, payroll, and taxes all at once. Sounds like a lot of work, right? That’s where QuickBooks Online comes in. It’s one of the most popular accounting tools for small and medium-sized businesses, helping you manage your finances with ease. Whether you’re a solopreneur or running a growing company, QuickBooks Online has a version to suit your needs.
In this article, we’ll detail everything you need to know about QuickBooks Online, including its features, pricing, advantages and disadvantages, and which version might be the best fit for you.
QuickBooks Online Comparison: Versions, Pricing, Features, and Compatibility
QuickBooks Online :
What is QuickBooks Online?
QuickBooks Online is a cloud-based accounting software designed to help businesses manage their finances. It’s perfect for tracking income and expenses, creating invoices, managing payroll, and even handling taxes. Unlike its older sibling, QuickBooks Desktop, QuickBooks Online is accessible from anywhere, on any device, making it ideal for businesses on the go.
Who should use it?
Small business owners
Freelancers and solopreneurs
Medium-sized businesses with multiple users
Anyone who wants to simplify their accounting process
1. QuickBooks Online Simple Start
Description: Simple Start is the most basic version of QuickBooks Online, designed for small businesses or solopreneurs who need to track income and expenses, create invoices, and manage basic accounting tasks.
Price: $30/month (with a 30-day free trial)
Key Features:
Track income and expenses
Create and send invoices
Accept online payments
Run basic financial reports (profit and loss, balance sheet)
Capture receipts via mobile app
Track mileage for business trips
Manage sales tax
Pros & Cons
✅ Pros
- Affordable for small businesses
- Easy to set up and use
- Mobile app for on-the-go accounting
❌ Cons
- Limited to one user
- No accounts payable (vendor bill tracking)
2. QuickBooks Online Essentials
Description: Essentials is a step up from Simple Start, offering additional features like accounts payable and time tracking. It’s ideal for businesses that need to manage vendor bills and have a small team.
Price: $55/month
Key Features:
Everything in Simple Start
Track and pay vendor bills
Time tracking for up to 3 users
Manage 1099 contractors
Pros & Cons
✅ Pros
- Adds accounts payable and time tracking
- Supports up to 3 users
- Great for small teams
❌ Cons
- No inventory tracking
- Limited to 3 users
3. QuickBooks Online Plus
Description: Plus is the most popular version of QuickBooks Online, offering advanced features like inventory tracking, project tracking, and class/location tracking. It’s perfect for growing businesses with more complex needs.
Price: $85/month
Key Features:
Everything in Essentials
Track inventory
Project and job costing
Class and location tracking
Budget tracking
Supports up to 5 users
Pros & Cons
✅ Pros
- Inventory and project tracking
- Class and location tracking for detailed reporting
- Supports up to 5 users
❌ Cons
- More expensive than Simple Start and Essentials
- Limited to 5 users
4. QuickBooks Online Advanced
Description: Advanced is the most powerful version of QuickBooks Online, designed for larger businesses with complex accounting needs. It includes custom fields, advanced reporting, and support for up to 25 users.
Price: $200/month
Key Features:
Everything in Plus
Custom fields for personalized tracking
Advanced reporting and analytics
Batch transaction entry
Spreadsheet sync with Excel
Backup and restore functionality
Supports up to 25 users
Pros & Cons
✅ Pros
- Highly customizable
- Advanced reporting and analytics
- Supports up to 25 users
❌ Cons
- Expensive for small businesses
- Overkill for businesses with simple needs
Key Features of QuickBooks Online
QuickBooks Online is packed with features designed to make accounting easier for small and medium-sized businesses. Whether you’re tracking expenses, invoicing clients, or managing payroll, QuickBooks Online has you covered. Here’s a breakdown of its key features and how they can benefit your business:
1. Income and Expense Tracking
Automatically syncs with your bank accounts and credit cards to track income and expenses.
No more manual data entry! QuickBooks categorizes transactions for you, making it easy to see where your money is going.
Example: Imagine you run a coffee shop. QuickBooks can track your daily sales and expenses like coffee beans, milk, and utilities, giving you a clear picture of your profit and loss.
2. Invoicing and Payments
Create and send professional invoices, and accept payments online via credit card or ACH transfer.
Get paid faster with online payment options and automated reminders for overdue invoices.
Example: If you’re a freelance graphic designer, you can send invoices directly to clients and even set up recurring invoices for retainer clients.
3. Financial Reporting
Generate reports like profit and loss, balance sheets, cash flow statements, and more.
Understand your business’s financial health at a glance and make informed decisions.
Example: A small retail store can use sales reports to identify their best-selling products and plan inventory accordingly.
4. Receipt Capture
Use the mobile app to snap photos of receipts and upload them directly to QuickBooks.
Say goodbye to paper receipts! Everything is stored digitally and attached to the corresponding expense.
Example: If you’re a contractor buying supplies on the go, you can capture receipts instantly and keep your records organized.
5. Mileage Tracking
Track business-related mileage using your phone’s GPS.
Easily calculate deductible mileage for tax purposes.
Example: A real estate agent driving clients to properties can track miles and claim them as a business expense.
6. Accounts Payable (Essentials and Higher)
Track and pay vendor bills directly within QuickBooks.
Keep track of what you owe and avoid late payments.
Example: A restaurant can manage bills from food suppliers and schedule payments to avoid disruptions in deliveries.
7. Time Tracking (Essentials and Higher)
Track hours worked by employees or contractors.
Simplify payroll and billable hours for service-based businesses.
Example: A marketing agency can track time spent on client projects and bill accurately.
8. Inventory Tracking (Plus and Higher)
Track inventory levels, costs, and sales.
Avoid stockouts and overstocking by keeping an eye on inventory in real time.
Example: An online store can monitor product availability and reorder popular items before they run out.
9. Project and Job Costing (Plus and Higher)
Track income and expenses by project or job.
Understand which projects are profitable and which ones aren’t.
Example: A construction company can track costs for each project, from materials to labor, to ensure they stay within budget.
10. Class and Location Tracking (Plus and Higher)
Categorize transactions by class (e.g., department) or location (e.g., store branch).
Get detailed insights into different segments of your business.
Example: A chain of gyms can track revenue and expenses for each location to identify top-performing branches.
11. Custom Fields and Advanced Reporting (Advanced)
Create custom fields for transactions and generate highly detailed reports.
Tailor QuickBooks to your unique business needs and gain deeper insights.
Example: A manufacturing company can track custom data like production batches and generate reports to analyze efficiency.
12. Payroll Integration (Add-On)
Manage payroll, taxes, and employee benefits directly within QuickBooks.
Simplify payroll processing and ensure compliance with tax regulations.
Example: A small business owner can pay employees, calculate taxes, and file payroll reports all in one place.
13. Mobile App
Access QuickBooks features on the go via iOS and Android apps.
Manage your finances anytime, anywhere.
Example: A traveling consultant can send invoices, track expenses, and check financial reports from their phone.
14. Third-Party Integrations
Connect QuickBooks with apps like Shopify, PayPal, and Square.
Streamline workflows and sync data across platforms.
Example: An e-commerce store can sync sales data from Shopify to QuickBooks for seamless accounting.
15. Tax Preparation
Track sales tax, manage 1099 contractors, and prepare for tax season.
Simplify tax filing and avoid last-minute stress.
FAQs About QuickBooks Online
What is QuickBooks Online, and how is it different from QuickBooks Desktop?
QuickBooks Online is a cloud-based accounting software that lets you manage your finances from anywhere, on any device. It’s subscription-based and regularly updated.
In contrast, QuickBooks Desktop is installed on your computer and doesn’t require an internet connection. While Desktop is a one-time purchase, it lacks the flexibility and accessibility of the online version.
How much does QuickBooks Online cost?
QuickBooks Online offers four pricing plans:
Simple Start: $30/month (best for solopreneurs)
Essentials: $55/month (ideal for small teams)
Plus: $85/month (great for growing businesses with inventory)
Advanced: $200/month (for larger businesses with complex needs)
All plans come with a 30-day free trial, so you can test the software before committing.
Can I track inventory with QuickBooks Online?
Yes, but only with the Plus and Advanced plans. These versions allow you to:
Track inventory levels
Create purchase orders
Manage stock for your products
If inventory tracking is essential for your business, you’ll need to choose one of these higher-tier plans.
Does QuickBooks Online support multiple users?
Yes, but the number of users depends on your plan:
Simple Start: 1 user
Essentials: 3 users
Plus: 5 users
Advanced: Up to 25 users
Your external accountant or bookkeeper can be added to any plan without counting toward the user limit.
Can I use QuickBooks Online for payroll?
Yes, but payroll is an add-on feature that comes at an additional cost. QuickBooks Online integrates with QuickBooks Payroll, making it easy to manage employee payments, taxes, and benefits.
Vijay Datt is a website developer, software expert, and SEO specialist. He writes about the latest software, graphic design tools, and SEO strategies. With expertise in web development and image creation, he helps businesses grow online. His articles provide valuable insights to enhance digital success.
