If you’re new QuickBooks Online or need a QuickBooks Online refresher these are the key reasons to use the QuickBooks Online platform:
- Manage your business from a PC or Mac with web access.
- Instantly share financial data together with your employees, accountant and other shareholders, partners or co-owners. You not a requirement to possess a network
- Your company data is protected with daily automated backups.
- There’s no software to put in and no network to take care of.
- Automatic upgrades are included within the price of subscription – never upgrade again. Includes customer support – no additional support plan needed.
Before making your decision to use QuickBooks Online, you ought to decide between QuickBooks Online, Online Essentials or QuickBooks Online Plus. this text will discuss the differences between these QuickBooks Online options. within the end, you’re liable for ensuring that you simply simply select the right version which should work with the business that you operate. There was a free version called Simple Start, it had been repackaged with a couple of more options and unfortunately, it’s not free and not worth very much like compared to the opposite two options. Sometimes, Intuit has it available on some remote websites, except for the foremost part it’s not free. the web Plus with Payroll version wasn’t considered for this analysis due to its basically an equivalent as Online with Plus with the added payroll functionality. QuickBooks Online Essentials are going to be collectively mentioned as “ONLINE ESSENTIALS ” and QuickBooks Online Plus as ” ONLINE PLUS “. Each major difference and brief comment are discussed below:
Online Simple Start – Limited to at least one user plus your accountant, free email support creates and manages your invoices with limitations and has over 20 business reports. this is often not recommended for little businesses with accounts payable, inventory and therefore the online banking needs. this is often very elementary and has limited usefulness to a little business.
A Comparison of QuickBooks ONLINE ESSENTIALS AND ONLINE PLUS:
Unless otherwise mentioned these features relate to both ONLINE ESSENTIALS AND ONLINE PLUS. For the foremost part, ONLINE PLUS has the features that you simply may have, regrettably only a couple of those features are available in ONLINE ESSENTIALS.
Importing – you’ll import your QuickBooks Basic, Pro, or Premier Edition desktop files (version 2000 and better file(s). The import doesn’t work with a Mac.
Estimates – Estimates are often created from ONLINE PLUS then seamlessly imported to an invoice for billing. By using estimates misunderstandings are often avoided.
Online Banking – If you do not use QuickBooks to enter all of your payments (I recommend using online banking) then by using this feature, your payments and receipts don’t need to be entered into your register once you use online banking. rather than entering then, you simply need to review them. once you download from your bank, (from participating financial service providers) QuickBooks is in a position to match the bank’s transactions to your transactions in QuickBooks and identifies differences. The program assists you in managing your income, because you recognize which checks have cleared the bank, which helps you understand what proportion money you’ve got in real time and makes monthly reconciliations easier and fewer time consuming.
Accounts Payable–Manage bills to pay later. This function is out there in ONLINE PLUS. it’s a really important functionality, if you would like to stay and maintain your accounts payable. i think keeping the amounts you owe vendors in QuickBooks if vital. This function allows you to always skills much you owe vendors and print reports like the Unpaid Vendors Report. you’ll enter bills and make payments separately, as a two-step process. This allows you to keep your money in your business as long as possible, and it allows you to track and manage your outstanding bills and either pay bills once they are due or before the scheduled due dates to require advantage of early payment discounts often given to businesses as an incentive to pay early. In summary, i cannot over emphasize the importance of this feature.
Business tracking – you’ll use ONLINE PLUS to categorize data from different locations, offices, regions, or outlets of your company. you’ll assign each transaction to every business. By assigning a business to every transaction as you enter it, you’ll later see businesses on reports. Assigning businesses also allows you to efficiently manage groups of transactions. an excellent use of this is able to be for various rental properties.
Time tracking – This feature is merely in ONLINE PLUS and allows your employee, consultants and other workers, to enter their time into a written record for fee for service businesses. One interesting feature, is that add unlimited written record users, i.e., if you’ve got offshore on local free lancers, independent contractors, et al. all can use this feature and report their time to you in real time.
Invoicing – Adding fields to trace more information on transaction forms is merely in ONLINE PLUS. you’ll create your own custom fields to incorporate on sales forms.
Reporting and Financial Statements – ONLINE ESSENTIALS provides 40 standard reports whereas ONLINE PLUS provides over 65 standard reports. A comprehensive analysis during a chart format of the reporting differences is often found at Intuit’s knowledge domain for comparison of the QuickBooks Online Products or send me an email and that I will forward you the applicable URL.
Budgeting – you’ll use a budget to estimate future income and expenses. Moreover, ONLINE PLUS budgets’ uses a format almost like a spreadsheet, with a horizontal row for every of your income and expense accounts, and vertical columns for every month or quarter. This feature is merely in ONLINE PLUS and it doesn’t provide a budgeted record or statement of money flows. Also, there’s no ability to budget or project supported allocations. you’ve got to enter numerical amounts within the spreadsheet type interface. However, you’ll insert different amounts for every month also as replicate monthly amounts in their spreadsheet like interface for any given number of months.
1099 Reporting – the interior Revenue Service requires that a taxpayer issue a 1099-MISC form to for nonemployee compensation providing the payments are to any noncorporate entity were adequate to $600 or more for services rendered. This feature is merely available for ONLINE PLUS. This too, is a crucial feature needed by most small businesses and can become even more important within the future, as more and more payments got to reported to the IRS. you want to mail these forms to vendors by January 31 for payments made within the previous tax year. do not forget that you simply must also mail these forms to the IRS by February 28 alongside a Form 1096
Purchase Orders – With ONLINE PLUS, you’ll create and send purchase orders. This new feature offers an automatic tracking system for your business purchases. Customize your PO’s together with your business logo or your own numbering system
Inventory Tracking- This feature is merely available with ONLINE PLUS. It provides the essential inventory functionality on the quantity of your items in inventory, sales and the way much you’ve got available.
Users –ONLINE ESSENTIALS provides access for 3 users plus your accountant (4 in total). However, ONLINE PLUS provides access for five users plus your accountant (6 users). Online Plus are often expanded to 25 users for a further cost, which is cheap. the tiny increase within the number of allowable users may be a minor improvement since last year
Web 2.0 and other new changes – Comparison to business trends and a replacement interface, new dashboard, I prefer the old sink point and click on menus. you’ll import your customer contact data from Microsoft Excel, Outlook and/or Gmail right into QuickBooks Online, hassle-free for all versions. the power to read information and make invoices, see customer data and more, your iPhone, Blackberry, or Android device.
QuickBooks Online Recommendation – For the foremost part, ONLINE ESSENTIALS may go for smaller companies, whereas ONLINE PLUS should work for little to midsized companies. i like to recommend ONLINE PLUS, since there’s more value to be received for what you pay. Before you create your decision, you’re ready to test drive the software for 30 days for all four platforms and, then decide which is best fitted to your business. and do not forget to ask you’re Certified QuickBooks ProAdvisor or CPA or accountant for help in making this important decision and to coach you, otherwise you’ll have problems and waste time by incorrectly using this powerful small business accounting software.