QuickBooks Online (QBO) is one of the most popular cloud-based accounting solutions available today, catering to freelancers, small businesses, and mid-sized enterprises. With a variety of pricing tiers, it offers flexibility tailored to diverse accounting needs and budgets. However, understanding how much QuickBooks Online costs and what each plan includes can help businesses make an informed decision that aligns with their operational goals and financial capacity.
TLDR: QuickBooks Online offers four main pricing plans tailored to different business sizes and needs. The plans range from simple tools for self-employed individuals to advanced features for growing teams. Each tier adds more functionality, such as inventory tracking or multi-user access. Consider your usage, number of users, and business complexity when choosing the right plan.
Overview of QuickBooks Online Pricing Tiers
QuickBooks Online offers four primary subscription plans: Simple Start, Essentials, Plus, and Advanced. Each comes with specific features designed to meet different levels of business complexity.
- Simple Start: $30/month
- Essentials: $60/month
- Plus: $90/month
- Advanced: $200/month
Let’s break down each plan to see what businesses are getting at each price point.
1. Simple Start: $30/Month
This is the entry-level plan ideally suited for freelancers, sole proprietors, and very small businesses. It includes:
- Income and expense tracking
- Invoice and payments acceptance
- Max of 1 user
- Receipt capture
- Tax deductions and mileage tracking
- Standard reporting features
Best for: Contractors, freelancers, and service-based businesses that need basic accounting tools.
2. Essentials: $60/Month
The Essentials plan builds on Simple Start by adding collaboration functionality. Here’s what’s included:
- Everything in Simple Start
- Time tracking
- Bill management and payments
- Multi-currency support
- Access for up to 3 users
Best for: Service businesses with employees or contractors needing better time and vendor management.
3. Plus: $90/Month
QuickBooks Online Plus is the most commonly used plan. It includes everything in Essentials and introduces key features such as:
- Inventory management
- Project profitability tracking
- Access for up to 5 users
- Class and location tracking
- Detailed job costing functionality
This plan is often a good fit for businesses that hold inventory or work on multiple projects with distinctive cost tracking.
4. Advanced: $200/Month
The Advanced plan caters to larger or more complex companies with more refined reporting and automation needs. It includes:
- Everything in Plus
- Access for up to 25 users
- Custom reporting via Fathom
- Batch invoicing and expense entry
- Dedicated account team
- Business analytics and insights
- Premium app integrations
- On-demand online training
Best for: Mid-sized companies scaling their financial operations and requiring advanced tools that support data-driven decision-making.
Special Offers and Discounting
Intuit frequently provides promotional pricing for new users, including discounts of up to 50% for the first three months or even free trials. It’s recommended that customers check directly on the QuickBooks website or authorized resellers for these limited-time offers.
However, it’s important to consider the long-term cost once the promotional period ends. Businesses should evaluate the value of added features instead of focusing solely on introductory prices.
Add-ons and Additional Costs
Although QuickBooks Online’s pricing tiers come with predefined features, several services are considered add-ons:
- Payroll Services: Starts at $45/month + $5/employee/month
- Time Tracking (QuickBooks Time): Optional and priced separately
- Payments Processing: Fees typically range from 2.4% to 3.4% + $0.25 per transaction, depending on the payment method
These additional services may be necessary for businesses with employees or clients requiring multiple payment options, so factoring in these costs is essential to budgeting accurately.
Choosing the Right Plan
The right QBO plan depends on a company’s size, industry, and revenue model. Here’s a simple guide:
- Simple Start: Individuals and very small businesses with minimal accounting needs.
- Essentials: Businesses that invoice, pay vendors, and manage employee time.
- Plus: Product-based or project-based businesses that require inventory tracking and cost analysis.
- Advanced: Companies with multiple users needing automation and robust reporting.
Also, scalability should be considered. As a business grows, it might need features that are only available in the higher-tier plans.
Comparing QBO Online to Desktop Versions
QuickBooks still offers desktop versions such as Pro, Premier, and Enterprise, which may appear cheaper over the long term due to one-time or annual licensing. However, those don’t offer the cloud-based convenience and mobile accessibility of QBO. Here’s a quick comparison:
- QuickBooks Online: Cloud-based, monthly subscription, real-time collaboration, regular updates
- QuickBooks Desktop: Local installation, one-time or annual fee, more robust features for inventory and reporting in Enterprise edition
Verdict: Businesses choosing between cloud-based and desktop should weigh mobility, multi-user collaboration, and IT infrastructure needs.
Is QuickBooks Online Worth the Price?
For many businesses, the cost of QBO is justified by the time saved on manual entry, tax prep, payroll integration, and invoice tracking. Its user-friendly interface, cloud access, and vast integrations make it an attractive choice even at higher tiers. However, firms with niche accounting needs or advanced customization may find limitations unless they’re on the Advanced plan.
FAQs About QuickBooks Online Pricing
- Can I try QuickBooks Online before committing?
- Yes, most users can access a 30-day free trial or take advantage of a discounted first-time user rate.
- Are there annual subscription options for QBO?
- Currently, QuickBooks Online does not offer annual billing, only monthly subscriptions.
- Can I change my plan later?
- Yes, you can upgrade or downgrade your QuickBooks Online plan at any time from the account settings.
- Is customer support included in the plan price?
- Yes, all pricing tiers come with access to QuickBooks Online support, though priority support is available for Advanced users.
- What happens if I cancel my subscription?
- You will retain access to your company data for a short grace period but will lose core functionalities once the billing cycle lapses.
Choosing the right accounting software is crucial for financial health and operational efficiency. QuickBooks Online’s transparent pricing and scalable plans make it a strong contender in the small- to mid-size business accounting space.
