The QuickBooks Online software is one of the most popular and most widely used software for accounting purposes in 2023. If you are looking for software used by small businesses, medium-scale businesses, and large-scale businesses for tax and accounting activities, then the QuickBooks Online software is something you need to check out.
There are two versions of the QuickBooks software, one being the QuickBooks desktop software and the other being the QuickBooks Online tool. The major difference between the QuickBooks desktop application and the QuickBooks Online tool is that the former is a standalone software that you can install on your computer to access all the accounting and tax features it offers. Whereas, on the other hand, the QuickBooks Online tool is a cloud-based online tool of the same application, with the benefit being that you can access QuickBooks Online from anywhere anytime you want by accessing the tool using a web browser.
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QuickBooks Online Review
In this section, we will be taking you through a detailed review of the QuickBooks Online version and also make you know about the pros and cons (advantages and disadvantages) of using the QuickBooks Online tool for accounting and taxation purposes.
Advantages of using QuickBooks Online
Detailed Reporting and Record-Keeping
The QuickBooks Online tool is the perfect solution to keep all your business records in a well-detailed, digital, and organized manner. For instance, using QuickBooks Online, you can add expenses, mention reference numbers for each expense, add permit digits, include memos, split expenses, add attachments, and more. You also have the option available to create customized tags and also the ability to run reports that show you a detailed insight on the income and expenses and much more. With all the features available within the software, you can organize your business finances better, have a detailed look at the budget, follow trends related to sales, and also understand the areas where cost-cutting measures can be applied for better business returns.
Easy to Find QuickBooks Experts and Share Data with Accountants
Sharing your QuickBooks Online data with your accountants is a super-easy task and is almost as same as how you would share an online document with others.
Moreover, thanks to the popularity of QuickBooks Online, you also have the chance to find a certified QuickBooks expert by utilizing the ProAdvisor Network.
There are also lots of resources available online such as webinars, forums, training videos, tutorials, and how-to videos, that can get you through a majority of the tasks without seeking help from anyone else.
Lots of Third-Party Integration Options:
Again, owing to the popularity of QuickBooks, there are lots of third-party developers that support the application and offer integration services.
By using third-party services, you can further improve the functionalities and features offered by the QuickBooks software and do multiple things right from within the software.
Disadvantages of QuickBooks Online
Subscription Plans Are on the Costlier Side:
With prices ranging from $25 to $180 every month and with restrictions on the maximum number of users that can have accounts depending on the plan, QuickBooks Online can become costly to operate for many businesses, especially the smaller ones.
Users May Have to Spend Time Learning the Basics:
As we mentioned in the pros section, there is a lot of content available on the internet to support your needs with the QuickBooks online tool.
However, if you aren’t familiar with the basic functionalities of a tax/accounting tool, then you will have to go through the resources/training before being able to use the software up to its maximum potential.
What is the cost of QuickBooks Online?
The QuickBooks Online tool works on a subscription model and there are four plans that you can opt for. Regardless of the plan you go with, all of them include features such as access to the QuickBooks Online mobile applications, customer support, third-party integration support, etc.
The basic plan, called the “QuickBooks Online Simple Start” costs $25 per month and has the below features:
- Ability to track all business expenses and revenues.
- Option to export financial reports periodically.
- Ability to create customized estimates and send them to required clients.
- You can upload receipts of expenses using the QuickBooks Online mobile application.
- Ability to take care of documentation related to 1099s.
- Accept client payments and generate/send invoices.
- Monitor the cash flow within the business.
- Ability to track the mileage using the QuickBooks Online mobile application.
The next tier plan is called the “QuickBooks Online Essentials” and costs $50 per month. Apart from the features available within the “QuickBooks Online Simple Start” plan mentioned above, below are the features available in this tier.
- Ability to track billable hours.
- Pay and manage bills for business operations.
- Option to generate better reports related to payables, sales, and receivables.
Next comes the “QuickBooks Online Plus” plan proceeds at $80 per month. Apart from the features of both the plans listed above, below are the features you can enjoy with this plan.
- Features to track the inventory and COG.
- Ability to see reports related to sales, inventory, and profitability.
- Availability of templates for creating new reports or customizing them.
- Sync the store inventory with third-party tools.
- Ability to track the profitability per project.
Finally, there is the “QuickBooks Online Advanced” plan that costs $180 per month. You get to enjoy all the features from all the plans listed above, along with the below ones.
- Option to create custom reports that can help monitor the profitability of the business.
- Manage the business expenses of employees.
- Batch invoice processing.
- Integration with popular third-party platforms such as DocuSign and HubSpot.
- Ability to customize user access to QuickBooks Online based on their role.
- 24/7 customer support either via phone or chat.
There is also the “QuickBooks Self-Employed” package, which aims at people working as freelancers and contractors working independently. The plans for this package start at $15 a month and the amount can increase depending on the extra features you add.
QuickBooks Online Alternatives 2023
If you wish to compare QuickBooks Online with alternatives that are currently available in the market, then below is a quick overview of QuickBooks Online alternatives you can opt for in 2023.
Wave:
Wave is a free-to-use accounting tool that charges you only for the extra add-ons you utilize within the tool. It is easy to learn and use, and provides the functionality to generate an unlimited number of invoices, track expenses/income, and connect with credit cards or bank accounts to set up recurring bill payments.
Talking about the cons, Wave doesn’t offer phone support for clients and also lacks advanced functionalities such as profit projections.
FreshBooks:
FreshBooks offer customers unlimited invoice generating the ability to track time, etc. There is also a mobile application that offers features such as mobile-based mileage tracking and inventory tracking. Also, customers get to enjoy both online and phone support in case of issues.
The thing we don’t like about FreshBooks is that it’s on the pricier side. The “Lite” plan, which is the cheapest, is restricted to just 5 billable clients, and the higher “Plus” plan only allows up to 50 billable clients. Also, you need to pay $10 every month for each team member that uses FreshBooks.
Xero
Xero is another popular alternative to QuickBooks in 2023. You can enjoy lots of features, support for unlimited users, features for managing your inventory, etc. The user interface is also very friendly and has 24/7 customer support as well.
The restrictions with Xero are that you only get to enter a maximum of 5 bills and send 20 invoices per month with the “Early” subscription plan. Unless you opt for the much higher tier “Established” plan that costs $65 every month, you do not get to enjoy features such as time tracking.
Verdict on QuickBooks Online
For anyone seeking reliable, well-rounded, and popular accounting software and tax software for businesses in 2023, then the QuickBooks Online tool is one of the very best tools in the market.