Tax & Accounting News

Pros and Cons of QuickBooks Online  

by
Julie Farless
on
3/13/2017
Pros and Cons of QuickBooks Online  

If you’re a small business owner, chances are you have an accounting software that helps keep track of your business expenses. For most, this would be QuickBooks. As technology continues to shift the way organizations do business, being able to access your files while on the go is a major plus. QuickBooks online helps make this transition, offering flexibility and more. While this is an attractive option, knowing the pros and cons of going digital is key.

What’s so great about QuickBooks?

While there are a number of accounting-based programs on the market, QuickBooks has a tremendous market share in terms of flexibility, adaptability, and coordination with banks and accountants. While the desktop version can be pricey, here are a few things you should know:

Pros

  • Remote access
  • Delayed charges and billing
  • Invoice automation
  • Multiple A/R or A/P accounts per journal entry
  • Automatic upgrades
  • Auto-send reports
  • Works on multiple devices
  • Location tracking
  • Multiple users
  • Automated backup
  • Bank transactions automatically download every night
  • Multiple budgets in a fiscal year
  • Capture receipts on your phone
  • Instant file access for accountants
  • Integration with third-party apps
  • Data-encrypted back-ups
  • Costs

Cons

  • Learning curve with new updates
  • Each company file requires separate subscription
  • No bill pay
  • Customized reports are limited
  • Inventory tracking is cumbersome
  • 1099 printing is only available on plus plan
  • Job costing is limited
  • Monthly fee
  • Files are stored at Intuit

There are a number of reasons why QuickBooks Online could be a good switch. If you have spotty internet, or have limited access to online resources, you may not be able to access your files. Additionally, your computer must meet specific requirements in order to run the online version of QuickBooks. If you plan to use QuickBooks over a long period of time, it will be cost-effective because you will not have to pay for the upgrades as you would have to do if using the desktop version. You must carefully evaluate all your needs. With QuickBooks Online, there are different subscriptions. If your business needs a particular feature and you can only get it with a higher subscription, as a small business owner, it may not be advantageous for you. Both versions are always updating their products to offer a more efficient way to handle the books.

Unfortunately, both versions have features that the other one does not have, which is something to be considered. Doing the research to ensure you are getting all the functions your organization will need should be a high priority. It is best to have a conversation with your accountant or bookkeeper to determine whether or not QuickBooks online is the best solution.

Consider how much time you are online, whether or not you need instant accessibility from anywhere, how secure your files will be in the cloud, and whether or not you want to pay a monthly fee. Once you have the answer to these questions, you will be able to make an informed decision.

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Julie Farless

Julie Farless

Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services, but we specialize in tax preparation. We work with you to ensure that your personal or business processes are conducted in a manner that ensures ongoing integrity in your financial transactions. We are available to answer your questions and help with your ongoing tax planning and changing business needs.

Deborah Martinez & Earl Shanken
29 reviews

Arizona

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