Choosing the Right QuickBooks Online Plan: Essentials vs. Plus

Choosing the right accounting software is crucial for the success of your business, and QuickBooks Online offers a range of plans to suit different needs. In this blog post, we’ll provide an overview of QuickBooks Online and compare two popular plans, QuickBooks Online Essentials and QuickBooks Online Plus. We’ll explore the key features of each plan and discuss why QuickBooks Online Plus is the better choice for the price difference.

Overview of QuickBooks Online

QuickBooks Online is a cloud-based accounting software designed to help small businesses manage their finances efficiently. With QuickBooks Online, users can track income and expenses, create invoices, manage bills, and run various financial reports from anywhere, at any time. The software offers multiple subscription plans, each with its own set of features to meet the diverse needs of businesses.

For more information, explore the benefits of QuickBooks Online. 

QuickBooks Online Essentials

QuickBooks Online Essentials is an entry-level plan designed for small businesses that need essential accounting features to manage their finances. The plan includes core accounting functionalities such as tracking income and expenses, invoicing, and managing bills. Additionally, Essentials allows users to connect their bank accounts and credit cards to automatically import transactions, saving time on manual data entry.

Key Features of QuickBooks Online Essentials

• Invoicing: Create and send professional invoices to clients, track invoice status, and accept online payments.
• Expense Tracking: Easily track business expenses by categorizing transactions and attaching receipts.
• Bank Reconciliation: Reconcile bank and credit card accounts effortlessly by matching transactions with bank statements.
• Financial Reports: Access essential financial reports such as profit and loss, balance sheet, and cash flow statements to monitor business performance.
• Mobile Access: Manage finances on the go with the QuickBooks Online mobile app, available for iOS and Android devices.

QuickBooks Online Plus

QuickBooks Online Plus is a more advanced plan that offers all the features of Essentials, plus additional functionalities tailored for growing businesses. In addition to core accounting features, Plus includes inventory tracking, project profitability analysis, and access for up to five users. While Plus comes at a higher price point than Essentials, the additional features make it a worthwhile investment for businesses with more complex needs.

Key Features of QuickBooks Online Plus

• Inventory Tracking: Track inventory levels, costs, and sales in real time to manage stock efficiently and avoid stockouts. Learn about inventory tracking in QuickBooks Online.

Setting up inventory in QuickBooks Online Plus

• Project Profitability Analysis: Allocate income and expenses to specific projects or jobs to track profitability and manage project budgets effectively. 
• Multi-User Access: Invite up to five users to collaborate on accounting tasks simultaneously, enhancing team productivity and collaboration.
• Class and Location Tracking: Categorize transactions by class or location to allocate income and expenses accurately and analyze performance by department or location. Explore class and location tracking in QuickBooks and when to use them. 

Class tracking in QuickBooks Online Plus

• Advanced Reporting: Access a wide range of customizable reports, including sales by customer, purchase by vendor, and inventory valuation summary, to gain insights into business performance and make informed decisions.

Why QuickBooks Online Plus is the Better Choice?

While both Essentials and Plus plans offer essential accounting features, QuickBooks Online Plus provides additional functionalities that can benefit growing businesses. Inventory tracking, project profitability analysis, multi-user access, and advanced reporting capabilities make Plus the better choice for businesses with complex accounting needs. Though Plus comes at a slightly higher price point than Essentials, the additional features justify the investment for businesses looking to streamline their operations and scale effectively.

Conclusion

While Essentials is suitable for small businesses with basic accounting needs, QuickBooks Online Plus offers additional features and functionalities that can benefit growing businesses. With inventory tracking, project profitability analysis, multi-user access, and advanced reporting capabilities, Plus provides the tools and insights needed to streamline operations and make informed decisions.

If you’re ready to enjoy the benefits of QuickBooks Plus for your business, contact us at 866-949-7267 and we will be happy to discuss the details with you. We will provide you with free consultation, discounts, and continuous support for as long as your QuickBooks account remains active.