Possibly one of the most confusing things about Quickbooks Online is choosing which version to use. As of August 2021, there are five versions of this software: Self-Employed, Simple Start, Essentials, Plus, and Advanced. And while it might be easiest to use price as a choice factor, this won’t help in the long run as your business grows. Let’s go over each version and what is included. Next week, I’ll dive deeper into which version might be the best choice for you.
The cheapest and most simple version of QBO is Self-Employed and past it’s cheaper start price, there is not much that makes this a good choice. Reports, which tell you how your business is doing, are very limited. There is no option to reconcile your accounts. Reconciliations are important to know that your books are accurate. As you grow your business and find you need more than this software provides, there is no option to upgrade and instead you would have to start a new account without having your previous history attached. From a bookkeeping point of view, I would have to say avoid this option unless you are a solopreneur or freelancer with no plans on expanding your business.
Going up a level, we have Simple Start. This version is great for a small business with no employees and not needing to track inventory. The reports are few, but the important ones, such as your balance sheet and income statement, are there. If you need more in-depth reports, this option wouldn’t be for you. There is no option to add any additional users. You are able to upgrade to a higher level when you need to.
Next, we have Essentials. What I like about this version is that it is really robust for the small businesses that are starting to grow, but don’t want to pay for a premium accounting software. This one still doesn’t track inventory, so you are out of luck there. You can finally add up to 3 users, which is perfect if you have an employee that needs to use QBO, as well as 2 accountant users. Paying bills through Quickbooks with this option is quick and easy, making at least one more bookkeeping task more automated. This version can also be upgraded if you outgrow it.
Moving up, let’s get into Plus. I personally love the Plus option because it gives you enough features to make sure it’ll last with you without being overwhelming. With Plus, you are able to do all of the items in Simple Start and Essentials with the add-ons of inventory tracking, ability to add up to 5 users, including 2 accountant users, and use their Projects option. Projects is especially useful for contractors and those who work on a job-to-job basis because it is, in essence, job costing. By breaking down a job into expenses vs income, you are able to watch what type of services are more profitable and use this data to your advantage. Again, this version can be upgraded.
Finally, we reach Advanced. Advanced is a beast of a software, giving you everything from ways to automate your workflow to restoration of your company’s data, if anything were to happen to it. This version is the most expensive option and really only needed for businesses that need more data and insights. Intuit does offer premium care and dedicated managers for this level. You are able to add up to 25 users, including 3 accountant users.
There you have it: a small look into the different versions of Quickbooks Online. While it may seem easiest to pick based on price, this may not be the best idea, especially as your business grows. Reach out to a bookkeeper or accountant and they can help you pick the right option for your business. Let me know in the comments if this information has been useful to you.
