QuickBooks Pros and Cons for Small Businesses

Intuit QuickBooks Online (QBO) has positioned itself as a top contender in the ever-changing business technology sector, revolutionising how small and medium-sized businesses manage their finances.

This article covers QuickBooks pros and cons to help you make an informed decision. Learn about its strengths, weaknesses, and whether it fits your business requirements.

Overview of QuickBooks Online

QuickBooks Online, developed by Intuit, is a popular cloud-based accounting software designed primarily for small and medium-sized businesses. It simplifies various financial tasks, from invoicing and expense tracking to payroll and reporting.

Its user-friendly interface and robust features make it a versatile tool for businesses to manage their finances effectively.

QuickBooks is a popular accounting software solution with over 6.5 million global subscribers. With different pricing plans, businesses can choose the solution that best suits their specific needs and budget.

QuickBooks Pros

The numerous advantages offered by QuickBooks Online make it a preferred choice for many businesses. It helps businesses save time, reduce human error, and gain valuable insights into their business’s finances.

Below are our top 10 advantages of Quickbooks Online.

1. User-Friendly Interface

One of QuickBooks Online’s standout features is its user-friendly interface, designed with both beginners and experienced users in mind.

The dashboard and well-organised menus make locating the tools needed to create invoices, reconcile bank statements, or generate reports simple. With clear instructions and helpful prompts, even those without extensive accounting knowledge can quickly understand and use the software’s functionalities.

2. Invoicing customers and payments.

QuickBooks Online makes invoicing and payment collection easy. You can create and customise professional invoices that reflect your brand. Sending invoices to clients is simple, and you can track their status in real time.

The platform integrates with various online payment processors, allowing you to accept payments through the software.

3. Expense Tracking

QuickBooks Online simplifies expense management by connecting your bank and credit card accounts for automatic transaction categorisation.

The mobile app lets you snap photos of receipts, extracting data automatically. QBO offers mileage tracking for easy travel expense reimbursement for businesses with employees on the road.

You can also create and manage purchase orders, ensuring efficient supplier communication. Paying suppliers is easy with QBO’s online bill-pay functionality.

4. Accounting Reports

QuickBooks Online provides financial reporting that offers valuable insights into your business’s financial health. You can quickly generate various financial statements, including profit and loss, balance sheets, and cash flow statements.

QuickBooks Online makes handling taxes easier by automating tax calculations and generating tax reports, including VAT returns. This automation ensures accuracy and saves time, allowing you to focus on other business tasks while complying with tax regulations.

5. Automation of Tasks

QuickBooks Online automates various tasks to save businesses time and effort. These tasks include:

Bank Reconciliation: QuickBooks Online can automatically import bank and credit card transactions. It matches these transactions to existing entries in QuickBooks, reducing manual effort and minimising errors.

Chasing Customers: QuickBooks simplifies the process of sending payment reminders to customers. You can schedule automatic reminders for unpaid invoices.

Receipt Capture: The mobile app allows you to snap photos of receipts, automatically extracting and categorising relevant information, eliminating the need for manual data entry.

Recurring Transactions: Automate the creation and sending of recurring invoices for regular clients or subscriptions, ensuring timely billing and consistent cash flow.

6. Integration with 3rd Party Apps

QuickBooks Online enhances its capabilities by seamlessly integrating with over 450 third-party applications. This lets businesses connect QBO with popular platforms like PayPal, Shopify, Square, Dext, Salesforce, and project management tools. These integrations streamline workflows, automate tasks, and make it easier for businesses to manage their operations more efficiently.

7. Accessibility and Collaboration

QuickBooks Online offers the significant advantage of cloud-based accessibility, allowing users to:

• Manage business finances from anywhere with an Internet connection
• Access financial data via PC, Mac, tablet, or smartphone
• Ensure data is always up-to-date and backed up in real-time

It supports multi-user access, enabling team collaboration from different locations, and can restrict access to sensitive data.

With QBO, you can collaborate with your bookkeeper or accountant by granting them real-time access to your financial data. This allows accountants to review transactions, reconcile accounts, and prepare financial statements remotely.

8. Regular Updates

QuickBooks Online regularly updates its software, ensuring users have the latest features, enhancements, and security patches. These updates often bring new tools and improved workflows.

Intuit’s commitment to regular updates demonstrates its dedication to providing a top-notch accounting solution.

9. Scalability

As your business grows, you can upgrade your QuickBooks Online plan to access more features and functionalities. Whether a small startup or a rapidly growing enterprise, QuickBooks Online offers plans tailored to your business size and industry needs.

10. Customer Support

QuickBooks Online prides itself on its robust customer support system, readily available to assist users whenever they encounter difficulties or have questions. The platform offers a comprehensive help centre with articles, tutorials, and FAQs.

Depending on their subscription level and preferences, users can contact QuickBooks Online support via phone, email, or live chat if the resources don’t suffice.

Cons of QuickBooks Accounting Software

While QuickBooks Online offers numerous benefits, it’s important to be aware of its potential drawbacks:

1. Cost: The monthly subscription fees can be a significant expense for small businesses with limited budgets, especially as they scale and require more advanced features.
2. Learning Curve: While generally user-friendly, mastering all of QuickBooks Online’s features and functionalities can take time and effort, particularly for those without accounting experience.
3. Internet Dependency: As a cloud-based solution, QuickBooks Online requires a stable internet connection to access and use. In areas with unreliable connectivity, this can disrupt workflow and hinder productivity.
4. Limited Offline Functionality: While QuickBooks Online does offer a mobile app with some offline capabilities, its full functionality is only available with an internet connection.
5. Potential for Errors: While automation is a significant advantage of QuickBooks Online, it also introduces the potential for errors. Incorrect data entry or misconfigured settings can lead to widespread issues that require time-consuming corrections.
6. Feature Limitations in Lower-Tier Plans: Some advanced features, such as inventory management and project tracking, might only be available in higher-tier plans.

QuickBooks Online Pricing

QuickBooks Online offers various pricing plans to fit different needs and budgets. Whether you’re a freelancer, sole proprietor, or a growing business with multiple users, there’s a plan for you. Options range from basic individual plans to more comprehensive packages for larger businesses.

We offer a 90% discount for 7 months, which means pricing starts from just £1 per month.

More Quickbooks Online Features

Inventory Management

QuickBooks Online helps businesses manage inventory by tracking stock levels, costs, and sales. Users can easily add and organise inventory items, set alerts to reorder stock and monitor quantities in real-time.

QBO also supports purchase orders, converting them into bills for easier supplier payments. Businesses can generate inventory reports to analyse sales trends and identify top-selling or slow-moving products.

While QBO’s inventory features suit many small businesses, those with complex needs might require dedicated inventory software for a more robust solution.

Time Tracking and Job Costing

QuickBooks accounting software, in conjunction with its integrated app, QuickBooks Time, offers comprehensive time tracking and job costing features. Employees can easily track their hours worked on specific projects or tasks through the web interface or mobile app. This data integrates with QuickBooks Online, allowing businesses to accurately track labour costs, bill clients for billable hours, and gain insights into project profitability.

QuickBooks Payroll

QuickBooks Payroll simplifies payroll management for small business owners and ensures compliance with HMRC regulations. It automates calculations for PAYE taxes, National Insurance contributions, student loan repayments, and pension contributions, reducing errors and penalties.

With QuickBooks Payroll, you can run payroll, generate payslips, submit Real Time Information (RTI) to HMRC, and manage employee benefits and deductions. The software updates automatically to reflect changes in tax laws, ensuring compliance and saving time. Note that the payroll feature has an additional monthly cost.

QuickBooks Pros and Cons Conclusion

QuickBooks Online is a powerful tool for small businesses to manage their finances. It offers a range of features and an easy-to-use interface designed to save time, reduce errors, and provide valuable financial insights.

While there are some drawbacks, such as cost and a learning curve, the benefits of efficiency, accessibility, and scalability often outweigh these downsides. By choosing QuickBooks Online, small businesses can invest in a platform that grows with them, ensuring financial success in the digital age.

Frequently Asked Questions

What are the main advantages of QuickBooks?

QuickBooks offers the advantage of automating time-consuming tasks, sending custom invoices and quotes, tracking income and expenses, and running your business in the cloud. It helps you save time, maintain professional communication, track finances, and access your data conveniently.

What is QuickBooks Best For?

QuickBooks Online excels as a comprehensive accounting solution for small—to medium-sized businesses. It simplifies tasks like invoicing and expense tracking. Its user-friendly interface and cloud accessibility make it a practical choice for those seeking to manage finances efficiently from anywhere.

Is there a QuickBooks Desktop Version?

As of 2024, Intuit has discontinued support for QuickBooks Desktop, meaning no further updates or security patches will be released. This change has led many businesses to transition to QuickBooks Online for continued support, automatic updates, and access to the latest features.

Alternatives to QuickBooks

QuickBooks is one of the leading accounting software providers in the UK. It is recommended that you look at alternatives to ensure that you choose the best option. Read our guide on QuickBooks vs. Xero for more information and our other reviews.