While there are many much more expensive accounting packages out there, QuickBooks is a very affordable option if you’re self-employed or run a small business. While the process of installing and setting up QuickBooks can be confusing, with some research and elbow grease, you can figure it out.
There are hundreds of accounting software out there – more than 1000, really – but only a few are worth trying from my experience. Wondering what the best QuickBooks alternatives for small business are? Curious about how to find the best software for your home-based small business accounting project? Check out this list of top programs to see which one is the best fit for you.
QuickBooks for Small Businesses
Since QuickBooks was completely re-written with a new API architecture in 2006, it has become a leader in bookkeeping solutions for both the small business owner with limited experience and enterprise C-level executive users.
QuickBooks caters to a wide variety of businesses and has two different platforms to choose from: QuickBooks Online and QuickBooks Desktop.
In order to make the best informed decision when choosing which is best for your company, below we will outline the main features and the cost associated with each.
How Much Does QuickBooks Online Cost? A Review of Features and Pricing
QuickBooks Online (QBO) operates very differently from the desktop version. You can purchase a monthly or yearly license and updates happen automatically as they are released. Some reasons businesses choose QBO are:
- Access from any location including mobile devices
- Cost effectiveness
- Integrates with a broad range of additional apps that create a financial eco-system for small business
Many small businesses, without a need for complex reports, will opt to use the online version. Startups also tend to use this version because of the low cost and accessibility.
There are three options to choose from with QuickBooks Online: Simple Start, Essentials and Plus.
Simple Starts about $15 per month. It covers the basic needs of a business; tracking income and expenses, invoicing and syncs with your bank. If you need more features than Simple Start offers, the next option is Essentials.
Essentials costs are around $30 per month and has additional features such as bill pay and profit & loss reporting.
Plus offers more advanced features. It costs around $40 per month and provides everything that Simple Start and Essentials provides along with inventory tracking and 1099 preparation.
The price for QBO fluctuates so we can’t provide an exact monthly fee. There are added fees depending on the number of users and if you want to integrate applications at time of purchase.
How Much Does QuickBooks Desktop Cost? A Review of Features and Pricing
QuickBooks Desktop (QBD) allows for more in-depth reporting like manufacturing, inventory, and job costing. It also allows for more users per file. Some top features include:
- Multiple User Access
- Job Costing if you use Intuit or Insperity Payroll
- Profit and Loss by Class, Service Item, Customer or Job
- Forecasting
- 1099s
Unlike QuickBooks Online, you purchase the software, install on your servers or desktop, and have the option of updating every year. QBD has upfront cost because the software has to be purchased. There are three options to choose from: Pro, Premier and Enterprise.
Pro software starts at $300 and provides up to 3 users per license.
Premier ranges from $500-$1,200 with 5 user licenses. Premier also allows your business to track inventory and make purchase orders.
Enterprise is more robust and costs $2,200 to $5,000 depending on the licenses you need. If you need accurate job costing and manufacturing, this is the best option.
Just like QBO, the cost can vary drastically for this product depending on how many users and the specific features your business requires.
Which is best for your Small or Medium-Sized Business? QuickBooks Online vs QuickBooks Desktop
As you can see, there are many differences between QuickBooks Online and QuickBooks Desktop.
While QuickBooks Online offers a lot of the same capabilities as the desktop version, it doesn’t currently allow for major functions or multiple users to access the same file at the same time.
QuickBooks Desktop allows for more reporting but doesn’t have the same easy accessibility of QuickBooks Online (although you can host the Desktop versions on a Cloud Hosting Provider.) Your company’s needs will determine which version works best for your business.
If you are unsure which version of QuickBooks your company needs, GrowthForce is here to help! We are an Intuit Premium Reseller with Advanced Certified QuickBooks Pro Advisors available to help you choose the right QuickBooks System for your business needs.
We can also integrate QuickBooks with the best apps to complete your small business financial ecosystem. And since we’re Premier Resellers, we’ll get it for you at a great price.
QuickBooks Online
The online version of QuickBooks works well for businesses that prefer the convenience of not having software to update, backup or manage. The online version doesn’t include the Collections Center, Inventory Center or Lead Center. QuickBooks Search and the Calendar view to show invoices, billing and other tasks also aren’t provided. QuickBooks online doesn’t support multiple customer invoicing, batch invoicing or the ability to scan and deposit checks.
QuickBooks Online doesn’t support setting inventory reorder points. Sales and expenses are available in one currency only and business plans, sales or expense forecasts aren’t supported. Businesses with basic accounting needs may find the online version suitable. Carefully evaluate whether you need the missing features when choosing a version.
QuickBooks Pro
QuickBooks Pro doesn’t provide an online backup option, but you may purchase online backup for a fee. The Inventory Center isn’t included, you can’t work with more than one company file at a time and the program supports up to three user licenses to allow multiple user access. Unlike the online version, the Collections Center and Lead Center are included. Additionally, support for international sales and expense tracking, along with a convenient customer snapshot view, are available. You won’t be able to create business plans, track balance sheets by class, forecast sales and expenses or use advanced inventory tracking features that are only available in the Enterprise Solutions option.
QuickBooks Premier
QuickBooks Premier provides advanced options suitable for most small businesses. The ability to view customized sales and profitability reports provides options to track your biggest sources of income. The Inventory Center makes it simple to access, edit, delete and manage all of your inventory in a single location. Additionally, balance sheet tracking by class provides support for using classes to track your data by office location, department or service type. Multiple billing options are supported that allow you to track charges by job phase. Finally, you can efficiently manage and track your time and expenses by category, including employee, project, client or services.
QuickBooks Enterprise Solutions
QuickBooks Enterprise Solutions provides the most features of all the programs and allows you to work with your business in whichever manner best fits your situation. For companies with basic accounting needs, the Enterprise Solutions version may provide more features than necessary. QuickBooks Enterprise Solutions provides an ideal solution for companies that need to combine reports from multiple files, use granular access control for multi-user environments and provide support for up to 30 simultaneous users. The product provides free online backup for the first year and technical support not provided by other versions. For businesses with multiple branches or departments that need advanced reporting and tracking options, the Enterprise Solutions version provides the most features.
Who QuickBooks Online Is Best For
- Construction: QuickBooks Online, when integrated with Buildertrend, provides excellent project accounting as well as construction management tools like employee time and location tracking, customer relationship management (CRM), and customer portal.
- Ecommerce retailers: QuickBooks Commerce can be added to QuickBooks Online to provide direct integrations with most ecommerce platforms, reducing the need for expensive third-party connectors.
- Real estate businesses: The ability to separate activity by class and location makes QuickBooks Online a viable option for property management companies that need to track income and expenses for various segments and locations.
- Online bookkeeping assistance: Intuit provides an online bookkeeping service, QuickBooks Live, that pairs companies with a dedicated team of ProAdvisors to provide bookkeeping services tailored to your QuickBooks Online needs.
- Invoicing: QuickBooks Online calculates sales tax rates automatically based on the customer address or transaction location.
- Farmers and ranchers: QuickBooks Online’s class and location tracking helps farm managers classify groups of assets or expenses by crop or livestock.
- Mac users: QuickBooks Online’s intuitive design and navigation are optimized for Mac users.
- Accounts payable (A/P): With QuickBooks Online, you can enter new bills easily and track how much you owe your vendors and when bills are due.
- Bank reconciliation: QuickBooks Online has the most comprehensive bank reconciliation of all the leading accounting software programs on the market. You can reconcile transactions by connecting your bank accounts or manually uploading your files of statements.
Features
- Location and class tracking: Set up tags to track your income and expenses across different departments, properties, or locations of your business. You can use this feature to determine which department brings the most money to your business.
- Inventory: Track the cost of inventory on hand and allocate that cost between ending inventory and the cost of goods sold (COGS).
- Project accounting: Create project estimates as well as projects to include income, expenses, and wages. A huge drawback we found in QuickBooks Online’s project accounting is that you cannot compare estimated to actual project costs.
- Invoicing: The best thing about QuickBooks Online’s invoicing feature is that it calculates the sales tax rate automatically to apply to your invoice based on the customer address.
Expert Opinion
It’s hard to go wrong with QuickBooks Online if you can afford the price. It’s very flexible and powerful software that can be customized for nearly any business. The ability to track profit and loss by class and location allows you to see how profitable your business is across different offices, locations, and properties. Another benefit of QuickBooks Online is that you can find a local QuickBooks ProAdvisor in your area easily if you need one. To get the most out of QuickBooks Online, check out our free QuickBooks Online tutorials.
Conclusion:
Accounting software for self-employed people is a good thing. If you are looking for small business accounting software, there are quite a few to choose from. However, they all have some different functions and features. You will want to choose one that will simplify your life and make it easier to run your business.