Common Prejudices About QuickBooks Setup
If you’re considering setting up your accounting software on your own, you may wonder if you should use the QuickBooks Desktop or the QuickBooks Online service. Both have their benefits and drawbacks, but the key is knowing what you need. For instance, if you run a small business, you should use the desktop version since it is one-time-only and has no subscription fees. However, if you’re planning to use the online version, you should know that it is a subscription service.
QuickBooks Desktop Is a One-Time Fee
There are a few different options for pricing QuickBooks Desktop, and you will want to make sure you’re aware of them before making your decision. While the base price for the program is a one-time fee, add-on features can cost extra. QuickBooks has various pricing options, each with its own benefits and drawbacks.
QuickBooks is a famous brand of accounting software manufactured by Intuit. It’s geared toward small businesses, although it can also be used for larger organizations with more advanced accounting needs. It’s available as a subscription from Intuit, or you can purchase it directly from a reseller for a one-time fee. It’s also available with Qbox, which lets you share the program with another user.
QuickBooks Online is a Subscription Service
Many everyday things need to be clarified about the benefits of using QuickBooks Online subscription service. Here are a few of them. Intuit commissioned a study to study the total economic impact of QuickBooks Online Advanced in June 2022. Intuit’s findings suggest that businesses that upgrade to QuickBooks Online Advanced can expect to save up to $59K over three years, or 488% of their original investment.
Subscriptions can scale with a company’s needs. Simple Start and Essentials subscriptions allow up to three users, while QuickBooks Online Advanced supports up to 25 users and three accounting firms. Both subscription levels offer different features and pricing. In addition, Advanced subscriptions allow for a custom chart of accounts and a priority Circle benefit.
QuickBooks is a Swiss Army knife of Accounting Tools
Having a good understanding of QuickBooks software setup is essential to maximizing the value of your software investment. For example, an entry-level version only supports one user, making it easy to make mistakes. Additionally, QuickBooks doesn’t have a fixed assets section and has many other limitations, including file size. As a result, it’s important to ensure that you are using the latest version of QuickBooks if you use payroll or other services.
A mistake in your Chart of Accounts can wreak havoc on your bookkeeping. Fortunately, QuickBooks has built-in reconciliation tools that help you prevent duplicate entries. But if you make a mistake, your financial statements will likely be incorrect, which could put you in serious financial trouble.
QuickBooks Isn’t a Good Fit for Niche Businesses
Although QuickBooks is a great software for some companies, there are better fits for some niche businesses. It could be a better solution for new or inexperienced users and is not well suited for educational or non-profit organizations. It also has a steep learning curve and needs features for larger companies. In addition, QuickBooks doesn’t provide direct support from a professional.
For one, QuickBooks Online hasn’t matured enough to support businesses that need desktop features. The program does not support the same data formats as its desktop counterparts.
It’s Expensive
One of the biggest problems with QuickBooks is its cost. The software costs a lot to run and is expensive to keep updated. Even if you use a cheaper version, a new update costs six times more than the previous one. Fortunately, there are some ways to get a discount on the software, and QuickBooks offers several monthly payment plans.
The most basic plan, which costs only $129, lets you use QuickBooks Online for up to 25 people. Additional users will be charged $299 each. You can also use QuickBooks Desktop Pro for up to 40 users, though you will have to pay an extra fee per user. It is possible to upgrade to a higher version after a year or two, which will save you money.