How To Know Which Version of QuickBooks Is Right For You

Updated for 2022

Which version of QuickBooks is right for your business? Let’s find out!

Back in the day, I was what the industry called a “die-hard desktop fan.” I started using QuickBooks Online back in 2009. It was clunky, slow and didn’t have ANY shortcuts for professional users. 

Not going to lie, I seriously HATED how user-UNfriendly it was at the time. 

But in the last 10 years, Quickbooks Online has really upped their game. It’s far more accessible today than the clunky old desktop version was. They even have an app, which makes it even easier to use.

All of the upgrades and improvements have made me a fan. QuickBooks Online is part of my everyday life now, for both me and my clients. I even offer training programs to help you make the most out of the software!

Of course, with QuickBooks Online, there are several options designed for all types of business. With all of the versions available, it might make you wonder which version of QuickBooks is right for where you are with your business. (In fact, that’s one of the most common questions I get from business owners!)

So which version of QuickBooks is best for you? Let’s find out!

I’lI break down the 5 types that QuickBooks Online offers, and show you what they can do. This should help you make an informed decision based on what you need.

Here are the 5 versions of QuickBooks Online, from lowest to highest investment.

Self-Employed version, $15-35 ish per month.  

This is the starter version, and it’s SUPER basic. It tracks expenses and estimated taxes due. It also has a feature that allows you to send invoices. Another fun feature is that it tracks mileage as well. This version is perfect for independent contractors and MLMs. It’s also nice for those who run simple businesses with one stream of income, like contracted massage therapists. One additional thing to know about this version: it’s for people who file a Schedule C only. If your business is an LLC, a partnership, a corporation or a nonprofit, you would need a different version. 

Simple Start for start ups, $30 ish per month

This version is pretty much the same as above. The main difference is that you can send estimates and sales tax. This version is a really great option for GRT states (such as, AZ, HI & NM). It’s also useful for  business structures such as Real Estate agents.

Essentials for service-based businesses who invoice for their time, $55 ish per month

As your business expands, your team might as well. This version allows for up to 3 users, which is a nice option to track the time for your in-house staff. Your staff can also handle your invoicing and bill paying for you through QuickBooks with the option to select billable items. This version is useful for Coaches, Researchers, and Nonprofits that offer services only. 

Plus, For product-based businesses who track inventory, $85 ish per month

This is the most popular version. It’s a favorite with my clients, even if they don’t have inventory. In this version you can track different revenue streams. It also allows you to track 1099 contractors, which makes the end of the year seamless. This version is perfect for Spa Owners, Merchandise Sellers, Marketing companies, and any other growing entrepreneur. 

Advanced, Best for small and midsize businesses wanting more detailed reporting, custom user permissions, a dedicated support manager, and up to 25 users $200 ish per month.

This is best for a business with many employees or managers. It’s the only version with workflow automation, business analytics, batching, etc. QuickBooks Online Advanced is perfect for Spa Owners, Merchandise Sellers, Restaurants, that have 25+ staff.

Here are a few additional fun facts about QuickBooks Online…

1. You have the option to add payroll to all versions for an additional fee (but I recommend Gusto for all payroll needs)
2. All versions include receipt collection. This feature helps you link expenses right from your phone. It also integrates with the apps that you likely already use (like PayPal). 
3. All versions include mileage tracking. This feature helps you track business mileage right from your phone.
4. If you have the desktop version, you can easily import your historical data into QuickBooks Online. 
5. You can easily upgrade to a higher version of QBO. Just be aware that once you upgrade, you can’t downgrade to a lower version for some levels.

That’s my basic breakdown to help you determine which version of QuickBooks is right for you. Hope that this helps you make sense of what’s available, and it has helped you make a decision that will suit your needs. 

Have a question about any of them that I didn’t answer? Leave me a comment!

Until next time,

Love, Light, and MONEY, Honey…

Kaylee