Choosing Between QuickBooks Online Simple Start and Essentials: What You Need to Know

Understanding QuickBooks Online Subscriptions

Choosing a Quickbooks Online subscription can be daunting when you look at the giant list of features on their website, especially considering that there are four levels to choose from. To make it easy for you, I'll tell you right now that if you're running a small business, you'll most likely only need to choose between two of them: Simple Start or Essentials.

Every business I've ever worked with has had no need for Plus or Advanced, so it's probably safe to say that you can narrow it down to the two lowest levels, unless you plan to use Quickbooks for a larger team that goes beyond just bookkeeping. So let's go over the two choices so you can confidently decide which one is right for your business.

Key Features of QuickBooks Online Simple Start

The Simple Start plan is designed primarily for solo entrepreneurs or very small businesses. It offers the basics you need to keep track of your expenses and income. With this plan, you'll be able to:

• Keeps tabs on your income and expenses

• Send invoices and track payments

• Generate basic reports

However, it’s important to note that Simple Start only allows you to manage one user account. This limitation can be restrictive if you envision growing your team. You also cannot manage accounts payable in Simple Start; you can only record expenses as they actually happen.

Core Features of QuickBooks Online Essentials

On the other hand, the Essentials plan expands on the features of Simple Start, making it more suitable for growing businesses or those requiring multiple access points. With Essentials, you can:

• Handle up to three users

• Track time and billable hours

• Manage bills due in the future

• Access enhanced reporting features

This plan essentially offers the foundational tools needed for better collaboration and more complex financial tasks.

Determining Which Plan is Right for You

Now that we've covered the main features, how do you decide which plan best aligns with your business needs? Here are some questions to ponder:

• How many people will need access to the accounting software?

• Do you bill clients based on time spent, or do you primarily send invoices?

• Do you plan to use Quickbooks Online for managing your bills?

• What level of reporting is necessary for your business operations?

If you’re a solo entrepreneur with straightforward financial activities, Simple Start is likely sufficient. If your business is growing, or you have a team that requires direct collaboration, consider investing in Essentials.

Choosing the right plan can significantly impact your business's efficiency and ease of managing finances. Take some time to analyze your current and future needs and weigh the benefits of each QuickBooks Online subscription against your business goals.