In this digital world, most business owners in the USA require efficient online accounting software to operate, manage, and enhance their financial transactions effectively. In this competitive market, various accounting software have been developed. To completely understand both QuickBooks Online Essentials vs Plus editions, we will compare the differences and similarities between them. The comparison will be made based on some aspects like their features, pricing, number of users, stock management, and project tracking. So, let’s start with the blog.
Out of which, QuickBooks is a well-recognized and user-friendly accounting software that fulfills today’s needs of both small and medium businesses (SMBs). Enterprises can avail of a wide range of solution-based products and services such as the QuickBooks subscription-based accounting software editions: Simple Start, Plus, Essentials, and Advanced are the four types of QuickBooks subscription-based editions, which are available globally. They can be accessed via the Internet on a web browser (for Windows and Mac desktop machines), and iOS and Android (mobile phone) operating systems.
QuickBooks Online Essentials VS Plus Editions: Comparison
Here, we will highlight the differences between QuickBooks Online Essentials vs Plus editions to provide ease for the cloud-based features to track and monitor the real-time collaboration of projects.
About QuickBooks Online Essentials
QuickBooks Online Essentials is an edition of the QuickBooks accounting software. It is specially designed for those businesses that offer only service-based products (not having the physical products to be offered to its customers). The main purpose of the QuickBooks Online Essentials accounting software edition is to make and manage company bills and expenses, track their annual income, and accept online payments.
This accounting software is best suitable for businesses, that are operating and managing a massive number of financial accounting payable transactions and provides access to a limited number of users (three) at the same time.
It includes budgeting tools, which allow business owners to easily set up their monthly and annual business budget reports. This will help in easy tracking of business income and expenses. It also helps in viewing business charts and graphs that are related to financial accounting with real-time projects.
About QuickBooks Plus
QuickBooks Plus is another subscription-based edition of QuickBooks desktop accounting software. This cloud-based software offers quick solutions for either the product or service-based businesses to its customers. The primary focus of such businesses is to keep track of and record their inventory costs and quantities.
This software edition helps in creating new purchase orders and efficiently managing project profitability of businesses or enterprises such as the cost of labor, managing payroll, and monthly expenses according to job costing. Due to the addition of such features, it comes with advanced reporting.
In QuickBooks Plus software, there is a limitation of only five users, and cannot exceed more than that. It offers additional features that make it a valuable investment for businesses with complex needs. Therefore, both QuickBooks editions provide common features like creating an automatic data backup, designing an automated workflow, and maintaining company annual reports.
Now, we will compare the QuickBooks Online Essentials and QuickBooks Plus editions on the below-mentioned factors:
Features: QuickBooks Online Essentials vs Plus
QuickBooks Online Essentials software plan offers some features to maintain transparency between businesses and customers. These features are as follows:
- Tracking income and expenses.
- Managing and paying bills.
- Sending price estimates.
- Supporting multi-currency transactions (additional fees charged).
- Fundamental reporting.
- Integrating with mobile apps.
- Allowing up to three users.
QuickBooks Plus software edition includes essential features that help businesses view and manage their aspects such as tracking labor costs, payroll management, and expenses with job costing collective in one place.
- Managing stock costs and quantities.
- Creating purchase orders.
- Tracking project profitability.
- Monitoring real-time projects and customer billing.
- Including additional feature of advanced reporting
- Allowing up to five users.
Pricing: QuickBooks Online Essentials vs Plus
Price is one of the most essential factors that every business owner can purchase the requisite QuickBook software plan according to their needs. The starting price of QuickBooks Online Essentials is $27.50 for the first three months. A business owner can use its trial version, which is free for 30 days and can save a discount of up to 50%. After a free-month trial, the actual price of this software plan is $55 per month.
QuickBooks Plus edition is costly as compared to QuickBooks Online Essentials. The initial subscription value of QuickBooks Plus is $42.50 for three months, and then it costs $85 per month.
A business owner can choose the QuickBooks software plan accordingly as there is not much difference in the price range. Also, there are other factors, in which the business owners can choose the QuickBooks software plan that matches their business requirements.
In short, the QuickBooks Online Essentials software plan price is typically lower than the Plus software. On the Other hand, the QuickBooks Online Plus software edition offers a higher price because of its additional features as compared to the Essentials software.
User Limitations: QuickBooks Online Essentials vs Plus
The QuickBooks Online Essential software plan allows only three users to smoothly operate the financial accounting transactions. The users are named as:
- Admin User account
- Standard User account
- A special User account is required for Accountants
On the other hand, the QuickBooks Plus software plan allows a limit of five users for product and service-based businesses or enterprises.
In addition, this software edition also has an additional feature named “reports only” users, which are not to be counted towards the actual number of QuickBooks Plus users.
As the feature is not available in QuickBooks Online Essentials, a business owner always needs to share their company’s reports with other business owners who might tip the scales towards Plus software.
The QuickBooks Online Essentials have three user accounts and can also have more than three users, but they all simply can’t be logged into the software at the same time.
Inventory Management: QuickBooks Online Essentials vs Plus
Inventory management plays a crucial role in operating and managing a product-based business. Many enterprises often use service-based businesses so they may use QuickBooks Online Essential software depending on the number of users.
If a business owner needs to efficiently and effectively maintain and manage proper stock entries in the QuickBooks software, then they need to choose the right plan depending on the functionality as well as the additional features with the best tools or options.
The QuickBooks Plus software plan has an additional feature of advanced reporting and allows up to five users, so it can smoothly track and monitor all the records related to inventory costs and quantities.
Project Tracking and Profitability: QuickBooks Online Essentials vs Plus
Project tracking and profitability are other factors to compare between QuickBooks Online Essentials and QuickBooks Plus software. This feature makes the QuickBooks Plus software plan more attractive as compared to the QuickBooks Online Essentials software edition.
This feature is beneficial for large enterprises, especially construction businesses and other enterprises that might need to do detailed job costing on a large scale.
QuickBooks Online Essentials software edition does not include any project tracking features. While the QuickBooks Plus software plan includes the project tracking feature for profitability analysis.
Common Similarities Between QuickBooks Online Essentials Vs Plus Editions
After elaborating on QuickBooks Online Essentials vs Plus plans, there is a long list of similarities, which include the common features:
- Cash Flow Statement of Income and Expenses
- Invoice-based Payments
- Enhanced Reporting Requirements (ERR)
- Deductions in Income Tax
- Mileage and Time Tracking Application
- Receipts and Expenses
- Sales Tax
- Online Bill Management Software
- Quote in Estimating and Costing
- Contract and Supplier Management
With so many similarities in common, pricing is the main difference between the two QuickBooks online subscription editions. The only difference between the two options is that QuickBooks Online Essentials costs $30 per month. So, most businesses can easily afford the best option to run their business smoothly.
Usually, QuickBooks Online Essentials and Plus are very similar in many ways. Also, some special features are added to QuickBooks Plus to attract more customers, which are not found in Essentials. However, both are built powerfully and are easy to use in a wide variety of accounting software choices.
Conclusion
While selecting QuickBooks Online Essentials vs Plus software, businesses should choose the plan according to their specific requirement and size. QuickBooks Online Essentials is ideal for small businesses with basic accounting needs, while QuickBooks Plus provides additional features such as advanced reporting, inventory management and budgeting capabilities, and scalability for large or more complex businesses.
Monitoring and assessing business requirements and comparing them based on the above-mentioned features that are offered by each edition will help a business owner make the right decision for fulfilling their accounting needs.
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