QuickBooks Online Review

By
Lori Fairbanks
,
business.com writer
| Updated
Jun 25, 2020
Image Credit: utah778 / Getty Images

QuickBooks Online from Intuit is our pick as the best overall accounting software application for small businesses. QuickBooks Online has it all. From diverse features to a user-friendly interface, QuickBooks Online delivers a fantastic product that is used by many small businesses nationwide.

Intuit QuickBooks Online

Intuit QuickBooks Online

The Best Accounting and Invoice Generating Software

The Verdict

QuickBooks Online from Intuit is our pick as the best accounting solution for small businesses. It has a range of diverse features and a user-friendly interface that make it easy for small teams to navigate.

June 2020: QuickBooks Online recently boosted its reporting capabilities to better support large reports. Report section titles, like those included in profit and loss and balance sheet reports, can now be edited by users. QuickBooks also upgraded its personalization tools, along with simple features like the scrolling option, to improve users' experience and report data readability.

To see all of our recommendations for small business accounting software, visit our best picks page  

It has both accounts receivable and accounts payable features, and can track projects and inventory, making it a great choice for nearly every business type. It offers a range of service tiers and is scalable, so it can grow with your business. If you want to customize the software with additional features, you can choose from hundreds of apps that integrate with this system. QuickBooks Online is updated monthly, and Intuit provides details on its blog about the improvements and new features of each update.  

Pricing

QuickBooks Online is competitively priced, offering plans for self-employed workers and small business plans. You can add payroll features to the small business plans for an additional monthly fee. A demo of the software is available, which is a good option that allows you to see an up-close view of the software.

Self-Employed Subscriptions 

  • The Self-Employed plan costs $1 per month and is for a freelancer or independent contractor. It can track income, expenses and mileage, keep your business and personal expenses separate, maximize your Schedule C deductions and calculate your quarterly estimated taxes.

  • The Self-Employed Tax Bundle plan costs $12 per month and includes all the features in the Self-Employed plan, but you can pay your quarterly estimated taxes online and transfer information to Turbo Tax.

  • The Self-Employed Live Tax Bundle costs $17 per month and includes all the features in the Self-Employed Tax Bundle plan. It also allows you to work with certified public accountants.

Small Business Subscriptions

  • The Simple Start plan costs $8 per month and is designed for a single user. You can create estimates and invoices, track income, expenses and sales tax, and generate basic reports. It doesn't have the mileage-tracking feature included with the Self-Employed plan.

  • The Essentials plan costs $12 per month and supports up to three users. It includes all Simple Start features plus time-tracking and bill-management tools.

  • The Plus plan costs $21 per month and supports up to five users. It includes the previously mentioned features. Users can also create purchase orders, manage inventory, track projects and pay independent contractors.

  • The Advanced plan costs $45 per month and supports up to 25 users. In addition to the features in the Plus plan, it comes with Smart Reporting powered by Fathom, five online training classes for your team, access to a dedicated success manager and premium customer support. This plan isn't eligible for the 30-day free trial. 

Features 

Starting a small business is stressful enough, and having good accounting software that saves you time and automates tedious tasks is critical. QuickBooks Online does both very well. It has automatic bank feeds that import your bank and credit card transactions and smart reconciliation tools that identify and automatically match your bank transactions with those you've entered into the software. 

You can create banking rules to further streamline reconciliation and categorization. It can also automate payment reminders, recurring invoices and bill payments. It automatically backs up your data to the cloud, so you don't have to do it manually. 

Here's a sampling of the other timesaving features in QuickBooks Online.

Invoicing

You can create and send invoices from both the QuickBooks browser and the mobile app so you can invoice customers as soon as the job is finished or the product is delivered; you don't have to wait until you're back in the office. There's also an app that allows you to invoice directly from Gmail.

QuickBooks invoices are optimized for mobile devices; your customers can view them from their phones. If you set up online payments, either through QuickBooks Payments or using an integration for a third-party payment processor such as PayPal or Square, you can add a payment button to the invoices that make it easy and fast for your customers to pay you directly from the invoice.  

You can create estimates using this software, and after your customer approves an estimate, you can convert it to an invoice with a single click rather than creating an invoice from scratch.

The software then automatically links related documents to keep your billing organized and avoid sending duplicate invoices. For example, after you convert the estimate to an invoice, it adds a note to the top of the invoice that says there's a linked transaction; you can click on it to see the type (in this instance, an estimate), date and amount of that transaction, along with a link to open that document. 

You can also create recurring invoices and schedule automatic payment reminders. The software lets you track and invoice billable hours and expenses, and set the software to automatically include unbilled charges on your recurring invoices. A surprising number of accounting software solutions don't offer invoice generator software, so this is a big plus for QuickBooks.

Inventory

The Plus plan can manage inventory and vendors, and create purchase orders. You can add images of inventory items and bundle products or services that are frequently sold together, saving you the time of entering them on an invoice separately. You can also track inventory, and 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 small stores or other businesses that maintain large quantities of inventory.

Mobile App

Available for both Android and Apple devices and included with your QuickBooks Online account, QuickBooks' mobile app shows you an overview of your business activity and allows you to accomplish multiple accounting tasks wherever you are. You can view dashboard data, create and send invoices, accept payments, capture receipts and attach them to expenses, reconcile transactions, view customer information, and message customers. 

Not all businesses want a mobile app, but with more business owners wanting some form of mobile-based business tools, it's nice that QuickBooks has this option. It's not the most important feature in the world, but if you're on mobile devices frequently, it's convenient.

Reporting

QuickBooks Online has multiple built-in reports, including for those for aged receivables, general ledger, profit and loss, and trial balance. You can set frequently used reports as favorites to make them easy to find, and you can also set up the software to automatically run and email reports to you on a schedule you create. 

Report generation is another feature that distinguishes QuickBooks from other accounting software solutions. There are multiple reports available with the solution, which help small businesses make better-informed decisions. Finding a solution with report generation abilities is crucial.

Third-Party Integrations

Instead of manually exporting and importing data between QuickBooks and the other business programs you use – such as a POS system, e-commerce platform, CRM, project management software and payroll systems – you can connect to them via third-party integrations, or apps, and automatically sync data between systems.

Other Features

QuickBooks Online has a rich assortment of features, but some are unique to certain plans, so if there are specific tools you need, you'll want to make sure the plan you choose includes them. For example, mileage tracking is only available on the Self-Employed plan. Project tracking, inventory tracking and 1099 contractor management features are only available with the Plus and Advanced plans. 

Also,  you can't upgrade from the Self-Employed plan to the Small Business plans (you would need to create a new account), but you can upgrade within the Small Business plans at any time.

Additional Considerations

Here are a few more things about QuickBooks Online to consider as you select an accounting software solution for your business: 

  • QuickBooks Online uses bank-grade security to protect your data, and you can opt into two-factor authentication. You can set user permissions to control the access of employees you invite to the system, and the software includes an audit log that tracks every login and logout as well as every change made to your files.

  • This accounting program is suitable for businesses with one or multiple locations, and it can also track classes if your business is organized by department.

  • Nonprofits in need of accounting software can use the small business plans, and you can use the statements feature to send end-of-year donation letters noting summaries to your donors. 

QuickBooks Online Pros

This online accounting software, like many of its competitors, is easy to set up. You answer several questions about your business, and it customizes the program based on your answers. After you set up your account, the software prompts you with basic tasks to get started. It has an attractive, intuitive interface, and most action items are quickly accessible from the tabs on the side menu or the quick menu that opens when you click the plus sign in the upper right corner of the screen. 

The dashboard is interactive and shows several graphs that give you an overview of your sales over time, income, expenses, and profit and loss. You can click on the images to drill down on each set of information. You can also customize the date range for each graph. 

It's also easy to customize invoices and forms. It gives you several templates, accent colors, fonts and font sizes to choose from, and you can upload and position your logo. You also decide what information to include in the header, select which columns to include in the body of the invoice and edit their labels and widths, customize the text, and add a message to your customers in the footer. 

Among some of the other positives of QuickBooks Online are: 

  • QuickBooks Online uses bank-grade security to protect your data, and you can opt into two-factor authentication. You can set user permissions to control the access of employees you invite to the system, and the software includes an audit log that tracks every login and logout as well as every change made to your files.

  • This accounting software is suitable for businesses with one or multiple locations, and it can also track classes if your business is organized by department.

  • Nonprofits in need of accounting software can use the small business plans, and you can use the statements feature to send end-of-year donation letters noting summaries to your donors. 

QuickBooks Online Cons

While there is an awful lot to like about QuickBooks Online, there are a few things to be aware of before you select it as your accounting software: 

  • You can't upgrade the Self-Employed plan, so if your business is growing or you think you might hire an employee soon, choose one of the Small Business plans.

  • The Small Business plans don't include a mileage-tracking tool, so if you need this feature for your employees, you'll need to find an app for it that integrates with the system.

  • You'll need multiple subscriptions if you run multiple businesses.

  • The plans limit the number of users; keep in mind how many people will need to access the software when you select a plan. Your accountant now counts as a user on your plan. 

Customer Service  

To test the level of support offered, we contacted Intuit posing as a small business owner interested in QuickBooks. We were connected to a representative right away who thoroughly answered all our questions. 

QuickBooks offers its customers multiple support resources. You can contact the company for help via phone or live chat, or you can consult the company's knowledgebase or ask questions in the community forum. 

Additionally, there are tutorial videos, webinars, and you can enroll in training classes. The company posts information about new features and software updates each month on its blog, along with articles of interest to small business owners. 

If you want in-person assistance, QuickBooks gives you access to local certified QuickBooks ProAdvisors who can give you one-on-one help on using the software for your business.

Intuit QuickBooks Online

Intuit QuickBooks Online

The Best Accounting and Invoice Generating Software

The Verdict

QuickBooks Online from Intuit is our pick as the best accounting solution for small businesses. It has a range of diverse features and a user-friendly interface that make it easy for small teams to navigate.

Lori Fairbanks
Lori Fairbanks
Lori Fairbanks has years of experience writing and editing for both print and online publications. After graduating from Brigham Young University with a Bachelor of Arts in English, she worked as a magazine editor and then as a freelance writer and editor for a variety of companies, including marketing firms and a medical university. She now writes for business.com and Business News Daily about financial systems and services for small businesses, such as accounting software, credit card processing and point-of-sale systems.