Quickbooks Online (QBO) is a financial management system that gives you the freedom to access your business file(s) from any location 24/7. As long as you have an internet or a solid mobile network connection you’re able to manage your business with ease. While not quite as powerful as its desktop counterpart Quickbooks Online come in 3 editions suitable for many types and sizes of businesses who’d rather manage their finances from the cloud.
The first and most basic edition of Online is Simple Start. This version of QBO is just how it sounds. This basic edition is intended for those who are new to or have very a small business. These businesses will only need 1 user in quickbooks and are likely a start-up or just getting to a point where they need additional help organizing and tracking their cash flow. Simple Start has many features, including the ability to import customer data from excel, create and manage invoices and print checks. You will also be able to run at least 20 different reports. Other than the ability to have only 1 user Quickbooks Simple Start is also limited to 1 account, either a bank account or credit card, that can be connected to downloaded transactions. Simple Start is further limited in it’s inability to create estimates, import information from a desktop version of Quickbooks, and it’s inability to have automated invoicing, accounts payable or connect payroll services.
If your business is a little larger or more well established you may want multiple users, or perhaps you need and expense account (ACCOUNTS PAYABLE). Whatever the case may be if Simple Start doesn’t sound quite robust enough then you’ll want to take a look at QBO Essentials. This edition has all the features of simple start as well as the two mentioned above, plus automated invoicing and more than 40 reports and estimates. While payroll can be added onto Quickbooks Essentials you do not get the free time tracking that comes with Quickbooks Online Plus. You are also limited to 3 users, though you can set user permissions.
Now, if your business is really booming you’ll need to check out QBO Plus. You get all the features of Simple Start and Essentials along with time tracking, class and location tracking, inventory tracking (FIFO), sales tax tracking, purchase orders, and the ability to create and print 1099’s. This version is really appropriate for a business with multiple locations who need remote access to their business file(s). You’ll also get 5 users and easy to use budgeting tools.
Be aware that Quickbooks Online is not for everyone. While it may be wonderful to have your information in the cloud and anywhere/ anytime access you lose some of the more potent features provided by the desktop version. So, if you need features such as job costing or multiple currencies then Online will not be an appropriate for your business.
I hope I’ve given you some idea of who QBO best serves and which online solution may be right for your business. If you have any questions, or want to move forward with one of these Quickbooks products please contact us for a FREE 1 hour consultation.