QuickBooks is one of the most widely used small business bookkeeping softwares available on the market today. It is owned by Intuit, which operates TurboTax, Mint, Credit Karma, and other financial products.
QuickBooks is used to track income and expenses to help you stay up to date on the financial health of your company. This allows for better cost management and decision-making. QuickBooks also provides the ability to:
· Invoice customers
· Receive payments
· Pay vendors
· Process payroll
· Pay contractors
· Track assets
All this can all be done in one software, saving you time and money. QuickBooks also allows you to directly connect with your bank and credit card accounts, keep everything up to date, and set up rules to automate the bookkeeping process.
QuickBooks Online vs QuickBooks Desktop
There are two versions of QuickBooks available: QuickBooks Online and QuickBooks Desktop. They are both used to track income and expenses. However, the navigation of the software and their abilities are quite different.
QuickBooks Desktop
There are three different versions of QuickBooks Desktop: Pro Plus, Premier Plus, and Enterprise. They are all on an annual subscription plan, that upgrades to the newest version every year. For many small businesses, Pro Plus will be enough to do the basic accounting tasks. But, as the company grows, you may find a need to upgrade due to an increase in the number of users or the need for additional customization.
QuickBooks Desktop is installed on your hard drive. So, if you are on the go and need to do your bookkeeping you will need to take your computer with you. However, if you find that you need to access QuickBooks Desktop on the go, you can connect it to a remote server like Right Networks for an extra fee. This may be needed to allow an accountant to work in real-time if they do not work on-site. On a positive note, since QuickBooks Desktop is on your local drive, internet access is not needed to access your financials.
With the Pro Plus and Premier Plus versions, you can set up 10,000 accounts in your chart of accounts and up to 100,000 on Enterprise. On all three versions, you can track inventory. You can also fully customize your invoices, estimates, etc. to match your other marketing materials without being limited to a specific template.
Lastly, a bit of accounting knowledge is recommended with the Desktop version as the verbiage and format of the software is geared more toward accountants. Navigation can be a bit more difficult than the Online version, but with a little practice becomes very intuitive. QuickBooks also offers a great database of help articles on their website to help you get moving.
QuickBooks Online
QuickBooks Online is a cloud-based accounting software. Therefore, it is not downloaded on your computer. Instead, you log in to the QuickBooks Online website to access your financials. This allows you to retrieve data from anywhere with an internet connection and allows your accountants to make changes remotely, in real-time.
QuickBooks Online has four different versions: Simple Start, Essentials, Plus, and Advanced. They can be set up with either a monthly or yearly subscription plan with the option for a free 30-day trial. Each plan offers income and expense tracking, connections to bank feeds, general reports, receipt capture, and more. The Simple Start will allow for one user, Essentials includes three users, Plus includes five users, and Advanced includes more than 5 users.
However, unlike the Desktop version, Quickbooks Online allows for only 250 accounts to be set up in the chart of accounts for the Simple Start, Essentials, and Plus plans. If you need additional accounts you would need to upgrade to the Advanced version or use the Desktop version. Furthermore, you are limited to the pre-set templates for invoices, sales orders, and estimates.
QuickBooks Online offers two view modes: Business View and Accountant View. Depending on your level of accounting knowledge you can use either view to help simplify navigation through the platform. The business view uses everyday wording that can be understood without any accounting knowledge. Just as with QuickBooks Desktop, there is a large knowledge base of help articles to help get you started with the Online version. They also offer a chat option directly within the platform, so you can reach out for assistance with a simple click.
Overall, it will depend on your individual needs and budget to decide on the best QuickBooks option for you and your business. However, with so many options you are sure to find one that will fit.