QuickBooks Online Review and Pricing

Why We Chose QuickBooks Online as Best for Small Businesses

When it comes to small business accounting solutions, QuickBooks stands apart as the clear market leader in the industry. It is a widely used brand that caters to small business owners who aren’t accountants or bookkeepers; QuickBooks provides straightforward accounting tools that meet their needs.

QuickBooks alternatives may be better for specific use cases. But, we found that QuickBooks Online’s breadth makes it the best overall pick for small businesses needing a one-size-fits-all solution. QuickBooks Online gives you everything you need to manage your financial operations, including accounts receivable and accounts payable features. If you want to customize the software with additional tools, you can choose from hundreds of apps that integrate with QuickBooks Online.

What’s more, we found that QuickBooks far outpaces its competitors, technologically speaking. Automation tools, for example, eliminate the tedious work of expense and financial tracking as well as bank reconciliation. Plus, the QuickBooks artificial intelligence (AI) chatbot can assist small business owners in analyzing their financial data and answering accounting questions. In short, our hands-on testing of QuickBooks and its peers uncovered that this solution has the technology and ease of use to suit small businesses of all kinds.

QuickBooks Online is a full-featured accounting solution that tracks income, expenses and helps you stay ready for tax season. Source: Intuit

Ease of Use

After testing QuickBooks Online, we think users will have an easy time navigating and learning the software. Although the feature-packed user interface can sometimes feel a bit busy, we found the layout logical. GAAP (Generally Accepted Accounting Principles) can be confusing for people without accounting expertise, but QuickBooks includes many data visualization tools to make it easier. The dashboard shows several graphs with overviews of your sales over time, income, expenses and profit-and-loss data. You can click on the images to drill down into each data set. We like that you can customize the date range for each graph.

We were further impressed by how easy it is to customize invoices and forms. QuickBooks gives you several templates, accent colors, fonts and font sizes to choose from; you can also upload and position your logo or brand image. We like that you can choose which information to include in the header and select which columns to include in the body of the invoice (and edit their labels and widths). It’s also possible to customize the text and add a message to your customers in the footer.

The QuickBooks dashboard provides a helpful overview of some key financial metrics. Source: Intuit

QuickBooks Online Features

QuickBooks Online stands out among the competition for its high-level accounting software features, including the following:

Bank Reconciliation

Don’t know how to reconcile a business bank account? QuickBooks features automatic bank feeds that import your business checking account and credit card transactions. Then, smart reconciliation tools identify and automatically match your bank transactions with those you’ve entered into the software. You can also create banking rules to further streamline reconciliation and categorization. We loved seeing that the software is capable of pulling vendor names from a jumble of unorganized bank data; such a feature saves you the trouble of doing this tedious work manually.

Automation

We were impressed by QuickBooks Online’s automation tools, which stand above some competing platforms we reviewed. QuickBooks can automate payment reminders, recurring invoices and bill payments. It automatically backs up your data to the cloud, saving you the time it would take to perform manual backups. QuickBooks can also automatically match foreign currency bank accounts. In an increasingly globalized environment, this is a valuable feature for businesses that operate abroad.

QuickBooks also has machine learning-powered tools. We think it’s especially cool that the software can “learn” about your spending habits to better organize expenses. QuickBooks will prompt you to help fill in gaps when it isn’t sure how to categorize an expense. In this respect, it far outpaces rival accounting software.

AI

QuickBooks has done an excellent job incorporating AI functionality into its software. Intuit Assist is an AI-powered assistant that can help analyze your business’s finances and answer accounting questions. The software can anticipate likely follow-up questions and provide actionable suggestions (e.g., sending reminders for unpaid invoices). It can also automate invoicing, categorize receipts, match transactions and more.

The Intuit Assist AI tool can help you create and customize invoices and answer financial questions about your business. Source: Intuit

Invoicing

Creating professional invoices could be the difference between your business getting paid and your invoice being ignored. For this reason, we appreciate how thoroughly QuickBooks handles invoice creation. Its invoicing features are more robust than those of many competitors we reviewed.

QuickBooks Online’s excellent invoicing functionality includes the following features.

• Mobile device optimization: We like that QuickBooks invoices are optimized for mobile devices. You can quickly create and send invoices from the QuickBooks browser software or mobile app. Another cool feature is that QuickBooks supports an app that allows you to invoice directly from Gmail.
• Invoice payment button: Want to set up online payments through QuickBooks Payments or a third-party processor like PayPal or Square (read our Square review to learn more)? Well, you can add a payment button to the invoices. That makes it quick and easy for your customers to pay.
• Estimate creation: We like that QuickBooks Online makes it easy to create estimates — a unique feature. Once a customer approves an estimate, you can convert it to an invoice with a single click. The software automatically links related documents to keep your billing organized and prevent duplicate invoices.
• Recurring invoices and payment reminders: Additionally, you can create recurring invoices and schedule automatic payment reminders. The software lets you track and invoice billable hours. Plus, it automatically includes unbilled charges on your recurring invoices. You can also send progress invoices to bill for only a portion of your services.

QuickBooks Online supports progress invoices, making it easier to get paid for longer-range projects. Source: Intuit

Inventory

When we tested the software, we were impressed by QuickBooks Online’s inventory features. Plus and Advanced plan users can manage inventory, vendors and create purchase orders through the accounting platform. You can add images of inventory items and bundle products or services frequently sold together, saving you from entering them on an invoice separately. You can also track inventory. In addition, the software shows you how many of a particular item you have in stock when you’re creating estimates, invoices and purchase orders. This feature is extremely helpful for businesses that maintain extensive inventories.

We also appreciate that the program alerts you when it’s time to reorder inventory. Once your inventory arrives, QuickBooks converts the purchase order into a bill. You also get on-demand reports; this feature gives you real-time insight into which products are doing well and which are underperforming.

Mobile App

We like that QuickBooks Online’s mobile app gives you an overview of your business activity and helps you accomplish multiple accounting tasks wherever you are. The app allows you to view dashboard data, create and send invoices, and accept payments. You can also capture receipts and attach them to expenses, reconcile transactions, view customer information, and message customers. During our test run, we found the app well-organized and straightforward.

The QuickBooks Online mobile app for iOS and Android helps you manage your business on the go. Source: Intuit

Reporting

QuickBooks Online also shines when it comes to report generation, outperforming many competitors. The software boasts multiple built-in reports, including aged receivables reports, general ledger reports, profit-and-loss statements, trial balance reports and balance sheets. During our test, we liked that you can set frequently used reports as favorites to make them easy to find. The software can automatically run reports and email them to you on a custom schedule. QuickBooks also allows you to create more data visualizations in custom reports. The insights in these reports can help you leverage data analytics to make better business decisions.

Third-Party Integrations

During our evaluation, we discovered that QuickBooks Online’s extensive third-party integrations (750-plus) set it apart from many of its rivals. Instead of manually exporting and importing data between QuickBooks and your other business programs, you can automatically sync data between systems. QuickBooks integrates with top POS systems, popular online stores, the best CRM software, project management solutions, payroll systems and more.

Security

We appreciate that QuickBooks Online uses bank-grade security to protect your data and that you can enable two-factor authentication. You can also set user permissions to control the access of employees you invite to the system. The software includes an audit log that tracks every login, logout and file change. These safeguards should help you prevent employee accounting fraud.

QuickBooks Online Pricing

QuickBooks Online is a little pricier than many competitors we reviewed. However, its robust features and widespread accountant usage make it hard to beat for small businesses. Here’s how its plans compare:

Pricing considerations and add-ons

Here are some additional pricing considerations to keep in mind:

• Introductory and annual discounts: QuickBooks Online often offers steep discounts, so check the company’s website for enticing offers. Depending on your plan, annual billing may offer a discount.
• Free trial: QuickBooks Online offers a generous free 30-day trial so users can test the platform.
• Payroll add-on: Many businesses add QuickBooks Payroll to their package for a more comprehensive accounting solution. (Our QuickBooks Payroll review explains this platform in-depth.) Here’s what you’ll pay for QuickBooks Payroll:
  • Payroll Core ($50 per month, plus $6 per employee, per month)
  • Payroll Premium ($85 per month, plus $9 per employee, per month)
  • Payroll Elite ($130 per month, plus $11 per employee, per month)
• Bookkeeping add-on: QuickBooks Live Bookkeeping is available to QuickBooks Online customers. The service starts at $300 per month, with an additional charge for accounting cleanup and onboarding during the first month. The ultimate cost is determined by sign-up month, tax filing status and your business’s start date. After that, you’ll be charged monthly based on your average monthly expenses over three consecutive months. Despite the price, we find this add-on appealing for small businesses that don’t want to hire a CPA.

With QuickBooks Live Bookkeeping, you get access to an accountant who can work with you in real time. Source: Intuit

Implementation and Onboarding

We really like how easy QuickBooks Online is to purchase and set up. On the QuickBooks website, you can start by taking a quiz to match you with the best plan. The brief survey asks several questions about your business needs. Such queries include which features you’d like as part of your software package and the number of employees on your payroll. At the end, QuickBooks will present its recommended plan. We found this setup feature to be a nice value-add that other competitors we reviewed don’t offer. You can also speak to a QuickBooks representative directly for one-on-one guidance.

Once you set up your account or free trial, connecting your bank account to QuickBooks takes only a few minutes. If you need implementation help, you can purchase a one-time session with a bookkeeper. They will walk you through setting up your chart of accounts, connecting your bank accounts and automating processes. Although this perk costs extra, we like that less tech-savvy business owners can receive hands-on assistance at a relatively low price point.

Customer Service

In an age when many cloud-based software solutions overlook customer service needs, we like that QuickBooks offers its customers multiple support resources:

• Availability: You can contact the vendor for help by phone or live chat Monday through Friday, 6 a.m. to 6 p.m. PT and Saturday, 6 a.m. to 3 p.m. PT.
• Advanced support: Users on the Advanced tier can access 24/7 live support and personalized training.
• Online resources: Users can search the company website’s knowledge base or ask questions in the community forum. You can also watch tutorial videos, webinars and enroll in training classes. The company shares monthly updates on new features and software enhancements on its blog, along with articles relevant to small business owners.
• ProAdvisors: Any QuickBooks customer can access certified QuickBooks ProAdvisors to get help with the software. While QuickBooks facilitates the connection, fees for ProAdvisors vary depending on the advisor and the services provided.

QuickBooks Online offers multiple digital support options for customers, including an online community and tutorials. Source: Intuit

Limitations

Although QuickBooks is an excellent accounting software solution, it has a few drawbacks to be aware of:

• Users can’t easily upgrade from the Solopreneur plan. Although upgrading is technically possible, the process requires downloading your data and reimporting it into QuickBooks after updating your service package. This is much more complex than we would like from the market-leading accounting software provider.
• The software may lack niche features. QuickBooks is a more generalized, one-size-fits-all solution than some of our other best picks. The software lacks some of the niche features that e-commerce businesses or those that process many physical transactions may want. Businesses needing to track time for billable hours might want to check out our FreshBooks review and our QuickBooks vs. FreshBooks comparison; those focused on enterprise resource planning might appreciate our review of Oracle NetSuite.
• It boasts limited users. Although QuickBooks doesn’t charge for additional users, it limits the number of active users based on the selected plan. Notably, a few rival accounting software programs allow unlimited users or additional users for an extra fee.

Methodology

We investigated dozens of the best accounting and invoicing software solutions to help small business owners as they research and choose the right accounting software for their needs. We reviewed each platform’s payment and invoicing capabilities, integrations, mobile apps, report generation capabilities, supported user counts, and customer service. We also assessed pricing and free trial availability.

Our information sources included vendor websites and our own hands-on software demos. We also considered customer reviews for independent opinions on things like customer service. When determining the best accounting software for small businesses generally, we specifically focused on three things: value, user-friendliness and how the software’s features would make small business owners’ lives easier. (Learn more about our editorial process.)

Bottom Line

We recommend QuickBooks Online for …

• Business owners who want a software package that is widely recognized and trusted by countless accountants and bookkeepers.
• Businesses that need their accounting software to integrate with many different third-party apps.

We don’t recommend QuickBooks Online for …

• Businesses that can’t afford to pay at least $20 per month for accounting software.
• Niche businesses (such as those in e-commerce) that require more specialized solutions instead of a mass-market, one-size-fits-all accounting software package.

Amanda Hoffman contributed to this article.