QuickBooks Online Review: Small Business Accounting Software

In 2023, QuickBooks Online is the gold standard in cloud-based accounting packages and is perfect for small business owners. Get access to features like payroll, accounts receivable and accounts payable, inventory reports, financial reports and more. 

Pros & Cons

Managing your finances is one of the most important parts of running your business. Choosing the right software can make the task much easier.

QuickBooks offers solutions for almost every type of business. Read this to learn how QuickBooks can set your business up for success.

What is QuickBooks Online?

QuickBooks is accounting software with an impressive reputation. They have been around since 1983.

Today, QuickBooks is regarded as a top-level accounting solution with the ability to accommodate the business needs of all sizes and industries. Their bread and butter lies in small business accounting, however.

QuickBooks is housed under the Intuit brand. Intuit also provides other financial tools, including:

• Mint: a personal finance and budgeting software with a convenient app
• Turbotax: tax return software for individuals and small businesses that allow you access to a real CPA review
• Proconnect: tax return software for tax firms

The online version of QuickBooks adds convenience and accessibility to your accounting needs.

It’s a cloud-based solution that automatically downloads bank account transactions and syncs across all your devices. About 18,000 financial institutions are supported so QuickBooks can easily handle your online banking needs.

By using QuickBooks Online, you can log into your account at any computer, tablet, or smartphone. With the free Quickbooks mobile app, you can manage business finances from a tablet or smartphone anytime you need.

Versions & Pricing

QuickBooks Online has something for everyone. From businesses just getting their feet wet to those with more robust accounting requirements, they’ve got you covered.

But how much does Quickbooks Online cost? Keep reading to learn the options.

Simple Start

Right now, you can get Simple Start for $10/ month for the first 3 months. Afterward, you’ll pay $20/ month.

Simple Start includes basic accounting functions and is perfect for businesses just starting out. Here are the features:

• Track income & expenses
• Capture & organize receipts
• Maximize tax deductions
• Invoice & accept online payments
• Run basic reports
• Send estimates
• Track sales & sales tax

Essentials

For a limited time, you can get QuickBooks Online Essentials for $20 per month for the first 3 months. After the promotional period ends, it’s $40 per month.

 You’ll get all the features of the Simple Start option, plus:

• Manage bills
• Up to 3 users
• Track time

Plus

Plus is $70 per month. For the first 3 months, you’ll only pay $35 per month. Plus is perfect for businesses that need the ability to track inventory.

All the features from QuickBooks Essentials are included. Additionally, you’ll get:

• Up to 5 users
• Track project profitability
• Track inventory
• Manage 1099 contractors

Advanced

QuickBooks Online Advanced is currently 60% off for the first 3 months. You’ll pay $60 per month during the promotional period. After that, the price is $150 per month.

Advanced boosts your business insights while giving you access to QuickBooks’ expert and dedicated support.

This option is best for growing businesses looking for a more robust accounting solution.  All the features from the Plus are included with Advanced. You will also benefit from:

• Up to 25 users
• Unlimited chart of accounts entries
• Unlimited tracked classes and locations
• Accelerated invoicing
• Smart reporting – powered by Fathom
• Customer user permissions
• Premium care with Priority Circle
• Enhanced custom fields
• Simplified bill payments

Who Should Use QuickBooks Online?

QuickBooks Online offers a cloud-based accounting solution for all levels of businesses. There are several ways to tell if it’s right for you.

Read on to learn who it’s best for.

Smartphone & Tablet Users

Business Using Other Apps

Small & Medium-Sized Businesses

Which Version is Right For You?

To determine which QuickBooks option to choose for your own business, there are two areas to evaluate.  First, determine which version will fit into your business’ budget. Cash is king, and this is especially true for smaller businesses.

Determine which option(s) fit into your budget before considering anything else.  Next, evaluate which features will best suit your business. Perhaps you need multiple users to have access to the accounting software.

Maybe you have 1099 contractors that you’d like to track. Keep reading to learn the features available with QuickBooks and which fall under each version.

QuickBooks Online Features

Several features of QuickBooks online are available on all versions of QuickBooks. But the more robust versions of QuickBooks are loaded with additional features.

First, here are the features you can expect no matter which version you decide to use:

Track Income and Expenses

Using QuickBooks, you can easily import transactions from your bank, credit cards, PayPal, Square, and more.  QuickBooks will automatically sort the transactions into your tax categories using rules that you’ve created.

You can utilize reports in QuickBooks to understand how your money is being earned and spent.

Capture & Organize Receipts

Using the app, you can capture and save images of receipts. The images are then matched with existing transactions automatically, making expense reporting much more seamless.

Maximize Tax Deductions

You can create rules within QuickBooks to easily categorize and sort your transactions for tax purposes.

QuickBooks will automatically categorize incoming transactions based on the rules, which makes tax time a breeze.

Invoice & Accept Payments

You can easily create and send custom invoices either online or using the app. QuickBooks allows you to send partial invoices to your customers at each stage of a project.

Once you’ve sent invoices, you can track their status and follow up with payment reminders. Customers can pay their invoices using credit cards and bank transfers within the invoice.

Run Basic Reports

QuickBooks lets you create customized reports based on your industry needs.

Here are some of the standard reports you can run with every version of QuickBooks Online:

• Profit and Loss
• Expenses
• Balance Sheet
• Cash Flow

Send Estimates

With QuickBooks Online, you can create customized estimates by adjusting layouts, logos, personal messages, and other custom fields. Estimates can be emailed to customers.

Mobile signatures let your customers accept the terms on the go. After the estimate has been accepted, QuickBooks will automatically create an invoice for that customer based on data that you’ve provided.

Track Sales & Sales Tax

QuickBooks automatically calculates taxes on sales based on date, location, type of product, and customer. You can take payments online or with a mobile card reader.

If you already use payment apps, such as Shopify, you can sync payment information with your QuickBooks account.

Sales Tax Liability reporting lets you see how much tax you owe to each tax agency, such as state, county, district, and so on. Plus, QuickBooks will track the due dates of those payments to keep you on track.

Manage 1099 Contractors

You can assign vendor payments to different 1099 categories in QuickBooks and easily see your payment information.

QuickBooks Online lets you prepare and file your 1099s.

Quickbooks Online Alternatives

Should You Use QuickBooks Online?

QuickBooks offers a wide variety of products and services to suit the needs of any businesses. They appeal best to small and mid-sized businesses.

Intuit QuickBooks Online is a cloud-based software and allows accounting on-the-go with the mobile app. It’s convenient and user-friendly, even if you aren’t an accounting expert.

If a cloud-based software isn’t for you, they do offer a desktop version. While Quickbooks Desktop version means you’ll give up some flexibility, you might gain peace of mind knowing that your information is not on the cloud.

QuickBooks takes care of businesses needing to run payroll as well. Their add-ons, TSheets and Self-Service or Full-Service Payroll, make it even easier to stay on top of time tracking and employee payments.

But these services all come at a cost. Compare your needs and budget with what QuickBooks has to offer.