Join Bonnie Biafore for an in-depth discussion in this video Which online edition should you choose?, part of Learning QuickBooks Online.
- [Instructor] If you've decided to go with QuickBooks Online, your next step is choosing the online edition that meets your bookkeeping needs and budget. QuickBooks Online comes in four flavors. Simple Start, Essentials, and Plus are for small businesses, and Self-Employed for independent contractors. The Simple Start edition is bare bones. It might work if you have a mom and pop shop with the simplest of bookkeeping needs.
Things like recording and printing checks, creating and sending invoices, and tracking performance with a handful of built-in reports. With Simple Start, only one person can access your data at the same time, but it's price tag is less than half that of the Essentials edition. Speaking of QuickBooks Online Essentials, it's a popular choice if you don't handle inventory. In addition to the basics, you can schedule recurring transactions, manage bills from your vendors, and track time.
This edition has about twice as many built-in reports as Simple Start, and up to three people can use your QuickBooks Online account simultaneously. You can also control what each user can do. QuickBooks Online Plus is the one with the most features. In addition to the features in QuickBooks Online Essentials, you can create purchase orders for the goods you buy. You can track inventory to an extent. You can create and print 1099s.
In addition to a few other nice to haves and even more built-in reports, up to five people can access your data simultaneously. QuickBooks Online Self-Employed, on the other hand, has the fewest features. In my opinion, it isn't worth its low monthly subscription fee. In essence, all you can do is invoice clients, receive payments, and run a few reports. You can't send estimates, manage bills, or track time.
Those are the differences between the online editions in a nutshell. If you're not sure, your best bet is to start with QuickBooks Online Essentials. If you find you need more bookkeeping horsepower, you can always upgrade to Online Plus or move to QuickBooks Desktop.
- Choosing a QuickBooks Online edition
- Setting up customers and vendors
- Setting up billable expenses and time
- Paying bills
- Creating invoices
- Handling refunds
- Depositing payments
- Handling downloaded online banking transactions
- Running and customizing reports
- Automating recurring transactions