QuickBooks Online

Top 15 Most Notable QuickBooks Online Features For Small Businesses

Stakeholders discuss the best features of QuickBooks Online

QuickBooks Online is a comprehensive accounting solution designed specifically with small businesses in mind. It’s not merely a tool for tracking income and expenses but a robust platform offering a plethora of features to simplify financial management. For small business owners, time is money, and efficiency is key. QuickBooks Online understands this, providing an array of tools to streamline processes, save time, and ensure accuracy in financial records.

Below are the top 10 most notable features of QuickBooks Online for small businesses.

1. Cloud-based Accessibility

One of the significant advantages of QuickBooks Online is its cloud-based accessibility, allowing you to access your financial data anytime, anywhere. With QuickBooks Online, you’re not tied to a specific location or device – all you need is an internet connection to log in and manage your finances. This flexibility is especially beneficial for small business owners who are constantly on the go or have remote teams. 

Whether you’re at the office, at home, or on a business trip, you can access QuickBooks Online from your computer, smartphone, or tablet, ensuring that you’re always in control of your finances. Moreover, QuickBooks Online’s cloud-based architecture ensures that your data is secure and backed up regularly, providing peace of mind that your financial information is safe from loss or theft.

Explore the benefits of QuickBooks Online and cloud accounting.

2. Invoicing

Invoicing is the lifeblood of any business, and QuickBooks Online’s invoicing feature makes the process seamless. With QuickBooks Online, creating and sending professional invoices is a breeze. You can customize templates to reflect your brand identity, add your logo, and tailor invoices to suit specific clients or transactions. The ability to set up recurring invoices for regular customers saves time and ensures prompt payments. 

QuickBooks Online also offers automatic invoice reminders to gently nudge clients about outstanding payments, reducing the hassle of follow-ups. Additionally, tracking invoice status is simplified with QuickBooks Online, allowing you to monitor when invoices are viewed, paid, or overdue.

3. Expense Tracking

Tracking expenses is essential for understanding where your money is going and maintaining financial health. QuickBooks Online’s expense tracking feature enables you to record and categorize expenses effortlessly. With the mobile app, you can snap photos of receipts on the go, ensuring that no expense is missed. These expenses can then be matched to transactions, providing a clear picture of your financial activity. 

Categorizing expenses helps in analyzing spending patterns and making informed decisions to cut costs or allocate resources more effectively. Moreover, QuickBooks Online allows you to set up rules for recurring expenses, saving time on data entry and ensuring consistency in expense categorization.

4. Bank Reconciliation

Bank reconciliation is a critical aspect of maintaining accurate financial records, and QuickBooks Online simplifies this process. By syncing with your bank accounts and credit cards, QuickBooks Online automatically imports transactions, reducing manual data entry. The reconciliation tool allows you to match transactions from your bank statement with those in QuickBooks Online, ensuring that your accounts are balanced. 

Any discrepancies can be easily identified and resolved, providing peace of mind that your financial records are accurate. Additionally, QuickBooks Online’s bank reconciliation feature helps in detecting fraudulent transactions or errors, allowing you to address them promptly.

Learn more about the banking features of QuickBooks Online.

5. Financial Reporting

Understanding your business’s financial performance is vital for making informed decisions, and QuickBooks Online offers a range of reports to help you do just that. From profit and loss statements to balance sheets, QuickBooks Online provides insights into your business’s financial health. These reports can be customized to focus on specific time periods, accounts, or metrics, allowing you to drill down into the data that matters most. 

With QuickBooks Online, you can generate reports quickly and easily, giving you a comprehensive view of your business’s performance at a glance. Moreover, the ability to compare current and past performance helps in identifying trends and forecasting future growth.

6. Multi-user Access

Collaboration is key to running a successful business, and QuickBooks Online’s multi-user access feature facilitates teamwork. With QuickBooks Online, multiple users can access the same account simultaneously, allowing for real-time collaboration among team members, accountants, and bookkeepers. Each user can be assigned customized access permissions, ensuring that sensitive financial data remains secure.

For example, you can grant read-only access to employees who only need to view reports or invoices, while giving full access to accounting staff responsible for data entry and reconciliation. This level of control helps in maintaining data integrity and preventing unauthorized access to sensitive information.

7. Customizable Chart of Accounts

The Chart of Accounts serves as the foundation of your accounting system, and QuickBooks Online allows you to customize it to suit your business’s unique needs. With QuickBooks Online, you can create, edit, and organize accounts to reflect your specific financial structure. For instance, you can create custom account categories to track income and expenses related to different product lines or service offerings. 

This level of customization enables you to categorize transactions accurately and generate meaningful financial reports tailored to your business. Moreover, QuickBooks Online’s support for subaccounts allows for even greater granularity in your financial tracking, providing insights into the performance of individual departments or projects.

8. Inventory Tracking

Managing inventory is crucial for businesses that sell physical products, and QuickBooks Online’s inventory tracking feature simplifies this process. With QuickBooks Online, you can track stock levels, costs, and sales in real time, ensuring that you always have the right amount of inventory on hand. Setting up items in QuickBooks Online is straightforward, allowing you to categorize products, assign SKU numbers, and track quantities accurately. 

QuickBooks Online also supports multiple inventory types, including FIFO (First In, First Out) and average cost, giving you flexibility in how you manage your inventory. Additionally, QuickBooks Online’s integration with e-commerce platforms allows for seamless syncing of sales data and inventory levels, streamlining the order fulfillment process.

Check out FIFO inventory in QuickBooks Online.

9. Sales Tax Tracking

Staying compliant with sales tax regulations is essential for businesses, and QuickBooks Online’s sales tax tracking feature makes it easy to manage tax obligations. With QuickBooks Online, you can automatically calculate and track sales tax on invoices, ensuring that you collect the right amount from customers. QuickBooks Online supports multiple tax rates and jurisdictions, allowing you to customize tax settings to match your business’s location and industry. Additionally, QuickBooks Online’s sales tax reports provide a detailed breakdown of tax collected and owed, simplifying the process of filing tax returns and remitting payments to tax authorities.

10. Mileage Tracking

For businesses that require travel, tracking mileage for tax deductions or reimbursements is a must, and QuickBooks Online’s mileage tracking feature simplifies this process. With the QuickBooks Online mobile app, you can easily track and categorize business miles using your smartphone’s GPS. QuickBooks Online automatically calculates the mileage deduction based on IRS rates, ensuring accuracy in your tax filings. 

Moreover, QuickBooks Online’s mileage tracking feature allows you to generate mileage reports for reimbursement or tax purposes, eliminating the need for manual record-keeping and saving time on administrative tasks.

11. Project Profitability

Tracking profitability by project is essential for businesses that work on multiple jobs or contracts, and QuickBooks Online’s project profitability feature makes it easy to monitor project costs and revenues. With QuickBooks Online, you can assign transactions to specific projects or jobs, allowing you to track income and expenses accurately. 

This level of granularity provides insights into the profitability of individual projects, helping you make informed decisions about resource allocation and pricing. Moreover, QuickBooks Online’s project profitability reports give you a comprehensive view of project performance, allowing you to identify areas for improvement and maximize profitability.

12. Time Tracking

For businesses that bill clients by the hour, tracking employee time accurately is crucial, and QuickBooks Online’s time tracking feature simplifies this process. With QuickBooks Online, employees can log their hours worked on specific projects or tasks, providing visibility into billable hours. QuickBooks Online’s time tracking feature integrates seamlessly with invoicing, allowing you to generate invoices based on billable hours quickly. 

Moreover, QuickBooks Online’s time tracking reports provide insights into employee productivity and project profitability, helping you optimize your business operations.

13. Budgeting

Creating and sticking to a budget is essential for managing cash flow and achieving financial goals, and QuickBooks Online’s budgeting feature makes it easy to plan and monitor your finances. With QuickBooks Online, you can set up budgets for income and expenses based on historical data or projected estimates. These budgets can be customized to match your business’s fiscal year or specific reporting periods, providing a roadmap for financial success. 

QuickBooks Online’s budget vs. actual reports allow you to compare actual spending against budgeted amounts, helping you identify areas where you’re overspending or underspending. Additionally, QuickBooks Online’s variance analysis tools provide insights into the reasons behind budget variances, allowing you to make adjustments as needed to stay on track.

See how you can use QuickBooks Online for budgeting

14. Integration with Third-party Apps

While QuickBooks Online offers a comprehensive suite of features, its integration capabilities with third-party apps allow you to further customize and expand its functionality. Whether you need specialized CRM, project management, e-commerce, or industry-specific solutions, QuickBooks Online’s ecosystem provides a wide range of apps to enhance your business operations. For example, you can integrate QuickBooks Online with payment processors like PayPal or Stripe to accept online payments directly from your invoices, streamlining the payment process and improving cash flow. 

Similarly, you can integrate QuickBooks Online with time tracking apps like TSheets or Harvest to track employee hours accurately and generate invoices based on billable hours. Moreover, QuickBooks Online’s integration with e-commerce platforms like Shopify or WooCommerce allows for seamless syncing of sales data and inventory levels, simplifying order management and fulfillment.

15. Payroll Management

Managing payroll can be complex and time-consuming, but QuickBooks Online’s payroll management feature simplifies the process. With QuickBooks Online’s integrated payroll service, you can easily set up and run payroll, calculate taxes, and file payroll taxes electronically. QuickBooks Online’s automatic payroll feature allows you to schedule and run payroll on autopilot, saving time and reducing the risk of errors. Moreover, QuickBooks Online’s payroll reports provide insights into labor costs and payroll taxes, helping you track expenses and stay compliant with tax regulations.


QuickBooks Online offers a wealth of features designed to meet the needs of small businesses, from invoicing and expense tracking to financial reporting and payroll management. With its user-friendly interface, robust customization options, and integration capabilities, QuickBooks Online provides a comprehensive solution for managing your finances effectively. Whether you’re a freelancer, a small business owner, or an entrepreneur, QuickBooks Online’s features can help you save time, streamline processes, and make informed decisions to grow your business.

Interested in Exploring QuickBooks Online for Your Business?

If you’re interested in learning more about how QuickBooks Online can benefit your small business, contact Paygration for a free demo and consultation. Our team of experts will guide you through the features of QuickBooks Online and help you get started on the path to financial success. Call us today at 866-949-7267 to schedule your free consultation.