Comparing Versions of QuickBooks Online and QuickBooks Self Employed

Have you been trying to decide which version of QuickBooks Online is right for your small business in 2021? Look no further! In this informative video by Accounting Stuff, the different versions of QuickBooks Online are compared, including the newly added “Advanced” version. The video breaks down each version’s features, provides time stamps for easy navigation, and even offers links to QuickBooks Online and accounting basics playlists.

From the cheapest option, QuickBooks Self-Employed, which is ideal for contractors and freelancers, to the scalable options like Simple Start for small businesses, and the more advanced versions like Essentials, Plus, and Advanced, there is a QuickBooks Online version that fits every business’s needs. The video also emphasizes the importance of consulting a Pro Advisor to determine the best fit for your specific business requirements. Make an informed decision and maximize the value for your money with QuickBooks Online in 2021!

Versions of QuickBooks Online

Overview of QuickBooks Online

QuickBooks Online is a cloud-based accounting software offered by Intuit. It is designed to help small businesses manage their finances more efficiently and effectively. By using QuickBooks Online, businesses can track income and expenses, create invoices and estimates, manage accounts payable and receivable, reconcile bank transactions, and generate financial reports.

Previous versions vs. current versions

In the past, QuickBooks Online offered three versions: Simple Start, Essentials, and Plus. However, Intuit recently added a new version called Advanced, which caters to medium to large-sized businesses with more complex accounting needs. Each version of QuickBooks Online offers different features and functionalities to meet the varying needs of different businesses.

Simple Start

QuickBooks Online Simple Start is the most basic version of the software. It is suitable for small businesses that are just starting out or have basic accounting requirements. With Simple Start, users can track income and expenses, create and send invoices, manage receipts, and access the QuickBooks Online mobile app. However, this version does not include features such as accounts payable functionality, inventory tracking, or advanced reporting features.

Essentials

QuickBooks Online Essentials is the next step up from Simple Start. It includes all the features of Simple Start, plus additional functionalities. With Essentials, users can manage and pay bills, track time, and have up to three team members access the software. This version is ideal for businesses that require more advanced capabilities, such as managing vendors and tracking employee time.

Plus

QuickBooks Online Plus is the most comprehensive version of the software before the introduction of Advanced. It includes all the features of Essentials, as well as inventory tracking and segment reporting. With Plus, businesses can track and manage their inventory, generate purchase orders, and create custom reports for different segments of their business. This version is suitable for businesses that deal with physical products and require more in-depth reporting capabilities.

Advanced

QuickBooks Online Advanced is the premium version of the software. It offers all the features of Plus, but with additional advanced reporting features and the ability to grant access to up to 25 users. With Advanced, businesses can create custom fields and tables, use smart reporting powered by Fathom, and have more control over user permissions. This version is specifically designed for medium to large-sized businesses that require extensive reporting capabilities and multiple user access.

QuickBooks Self Employed

Overview of QuickBooks Self Employed

QuickBooks Self Employed is a separate product from QuickBooks Online and is specifically designed for freelancers, contractors, and sole proprietors. It is a cost-effective solution that helps individuals track their income and expenses, manage invoices, and prepare for tax season. QuickBooks Self Employed is a great tool for those who need a simple and user-friendly way to manage their finances without the need for more advanced accounting features.

Usefulness for contractors and freelancers

QuickBooks Self Employed is particularly useful for contractors and freelancers who need to keep track of their business expenses and income. By linking their bank accounts and credit cards to the software, users can automatically categorize transactions as business or personal, making it easy to separate business expenses and maximize tax deductions. The software also provides quarterly tax estimates and allows users to raise professional-looking invoices and accept payments.

While QuickBooks Self Employed is a convenient tool for contractors and freelancers, it may not be suitable for small businesses with more complex accounting needs. For businesses that require features such as accounts payable functionality, inventory tracking, and advanced reporting, QuickBooks Online would be a better choice.

Features of QuickBooks Online

Income and expense tracking

One of the core features of QuickBooks Online is its ability to track income and expenses. Users can easily categorize transactions, link their bank accounts, and import transactions automatically. This feature allows businesses to have a clear overview of their financial health and makes it easier to manage their cash flow.

Mobile app

QuickBooks Online offers a mobile app that allows users to access their account from anywhere. With the mobile app, users can snap and organize receipts, track mileage, create and send invoices, and view financial reports on the go. This feature is especially useful for businesses that are constantly on the move and need to manage their finances remotely.

Accounts payable functionality

QuickBooks Online Essentials and above include accounts payable functionality. This allows businesses to easily manage and track their bills, pay vendors, and monitor their accounts payable aging. Users can also set up recurring payments and automate the payment process, saving time and reducing the risk of missing due dates.

Multiple team members

QuickBooks Online Essentials and above also allow multiple team members to access the software. Businesses can grant access to employees, accountants, or other stakeholders, allowing them to collaborate on financial tasks and share relevant information. This feature promotes teamwork and makes it easier to manage financial tasks in a collaborative environment.

Inventory tracking

QuickBooks Online Plus and Advanced offer inventory tracking functionality. Businesses can keep track of their inventory levels, set up reorder points, and generate purchase orders to replenish stock. This feature is crucial for businesses that sell physical products and need to manage their inventory efficiently.

Segment reporting

QuickBooks Online Plus and Advanced also provide segment reporting capabilities. This feature allows businesses to create custom reports for different segments of their business, such as departments, locations, or product lines. Segment reporting provides valuable insights into the performance of different areas of the business and helps businesses make data-driven decisions.

Advanced reporting features

QuickBooks Online Advanced offers advanced reporting features, including custom fields and tables, as well as smart reporting powered by Fathom. These features allow businesses to create custom reports, add additional data fields, and analyze their financial data in more depth. Advanced reporting features enable businesses to gain deeper insights into their financial performance and make more informed strategic decisions.

Number of user access

QuickBooks Online offers different levels of user access depending on the version. Simple Start allows one user and an accountant to access the software, Essentials allows up to three team members, Plus allows up to five team members, and Advanced allows up to 25 users. This range of user access options allows businesses to choose the level of access that best suits their needs and budget.

Comparison

Cost

The cost of QuickBooks Online varies depending on the version chosen. QuickBooks Self Employed is the cheapest option, starting at $10 per month. Simple Start is priced at $20 per month, Essentials at $40 per month, Plus at $70 per month, and Advanced at $150 per month. It is important to consider the features and functionalities included in each version when comparing costs to determine the best fit for your business.

Target users

QuickBooks Self Employed is specifically designed for freelancers, contractors, and sole proprietors who need a simple solution to track income and expenses. QuickBooks Online offers different versions to cater to the needs of small businesses. Simple Start is suitable for small businesses with basic accounting requirements, Essentials offers more advanced features, Plus caters to businesses that sell physical products, and Advanced is designed for medium to large-sized businesses with more complex accounting needs.

Features and functionalities

The features and functionalities offered in each version of QuickBooks Online vary. QuickBooks Self Employed focuses on income and expense tracking for individuals, while QuickBooks Online offers additional features such as accounts payable functionality, inventory tracking, segment reporting, and advanced reporting features. It is important to consider the specific needs of your business when comparing features to choose the version that best meets those needs.

Recommendations

Consulting with a Pro Advisor

To determine the best fit for your business, it is recommended to consult with a QuickBooks Pro Advisor. These certified professionals can provide guidance and expertise to help you choose the right version of QuickBooks Online based on your specific business needs. A Pro Advisor can assess your requirements, recommend the most suitable version, and assist with the setup and implementation process.

Determining the best fit for your needs

To determine the best fit for your business, consider the following factors:

• Size and complexity of your business: Assess the size of your business and the complexity of your accounting needs. If you have a small business with basic requirements, Simple Start may be sufficient. If you have a larger business with more complex needs, Advanced may be the most suitable option.

• Specific features required: Take into consideration the specific features and functionalities that your business requires. If you need accounts payable functionality, Essentials or above would be necessary. If you sell physical products, Plus or Advanced would be more suitable due to their inventory tracking capabilities.

• Budget: Consider your budget and how much you are willing to invest in accounting software. Compare the costs of each version of QuickBooks Online and weigh them against the features included. Remember to factor in the potential scalability of the software as your business grows.

By considering these factors and consulting with a Pro Advisor, you can make an informed decision and choose the version of QuickBooks Online that best fits your business needs.

Conclusion

Choosing the right version of QuickBooks Online is essential for managing your business finances effectively. The different versions, including Simple Start, Essentials, Plus, and Advanced, offer varying features and functionalities to cater to the needs of different businesses. For freelancers and contractors, QuickBooks Self Employed provides a cost-effective solution to track income and expenses. By understanding your business requirements, consulting with a Pro Advisor, and considering factors such as cost, target users, and features, you can make an informed decision and select the version of QuickBooks Online that will best support your business growth and success.