How Much Does Quickbooks Online Cost?

Last Updated on October 9, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

QuickBooks Online is one of the most popular accounting platforms for small businesses and entrepreneurs. But what exactly does a QuickBooks Online subscription cost?

In this pricing guide, we’ll explain the monthly and annual plans, payroll options, add-on expenses, discounts available, and how costs compare to competitor solutions. You’ll get a complete breakdown of what’s included at each tier and expert advice to help you make the best QuickBooks Online buying decision.

Whether you’re just starting out or have an established small business, understanding QuickBooks pricing empowers you to choose the right solution for your financial management needs.

How Much Does Quickbooks Online Cost?

Quickbooks Online costs between $35 and $235 per month, depending on the package you choose, although adding extra services will increase this price. Here is an in-depth overview of QuickBooks’ four main Online plans with their pricing, user limits, and features:

QuickBooks Online Simple Start Plan

• $35 per month with annual plans available
• 1 user included
• Best for solopreneurs or very small businesses
• Core features: invoicing, estimates, expense and income tracking, receipt capture, basic reporting

Simple Start is the most affordable QuickBooks tier. It offers essential financial management capabilities for micro businesses. However, it lacks more advanced features like deeper reporting, multi-user access, or integrations.

QuickBooks Online Essentials Plan

• $65 per month is standard pricing
• Up to 3 user seats included
• Ideal for small businesses with employees
• Adds advanced billing and time tracking

Essentials includes everything in Simple Start plus multi-user access, bill management tools, and time tracking. QuickBooks recommends Essentials for service businesses with up to three employees who need more collaboration features.

QuickBooks Online Plus Plan

• Monthly fee is $99 per month
• Supports up to 5 user seats
• Geared for growing product and retail companies
• Includes inventory management, sales channels, and project cost tracking

Plus provides a big step up for ecommerce, product-based, and project-focused small businesses. Advanced reporting, custom fields, inventory tools, and other features make this a powerful tier.

QuickBooks Online Advanced Plan

• Most expensive at $235 per month
• Supports up to 25 simultaneous user seats
• Packed with automation and advanced customization
• Adds fixed asset tracking, real-time Excel sync, and more

Advanced caters to larger established businesses that need robust accounting controls, advanced reporting, tight 3rd party integrations, bank feed management, and other premium financial capabilities.

QuickBooks Online Advanced is comparable to hiring a full-time bookkeeper at a fraction of the cost. For complex business finances, the features justify the price premium.

According to Tech.co, the pricing starts at $17.50 per month for the Simple Start plan, which provides basic accounting features for one user. However, this introductory price is part of a promotion; after three months, the cost increases to $35 per month.

According to NerdWallet, For businesses needing more functionality, the Essentials plan is priced at $32.50 per month during the promotional period, rising to $65 per month afterward. This plan supports up to three users and includes additional features such as bill management and time tracking.

The official QuickBooks website notes that the Plus plan, which allows for up to five users and includes features like project tracking and inventory management, costs $99 per month after the promotional period, starting at $49.50 per month for the first three months. Lastly, the Advanced plan is designed for larger businesses and is priced at $235 per month after an introductory rate of $117.50 per month.

QuickBooks Online Cost Structure

QuickBooks Online is Intuit’s robust cloud-based accounting platform designed specifically for small business owners, entrepreneurs, freelancers, and solopreneurs. It provides features like:

• Invoicing, estimates, and payments
• Expense and income tracking
• Payroll, tax planning, and detailed reporting
• Inventory and project management
• Advanced analytics and automation

One major benefit of QuickBooks Online is automated data integrations with other business platforms like payment processors, ecommerce stores, and POS systems. This saves time spent on manual data entry.

QuickBooks uses a Software-as-a-Service monthly or annual subscription model with four main plans that scale from basic accounting features to advanced financial management capabilities. Additional one-time and recurring fees apply for extras like payroll, tax forms, and bookkeeping services.

“QuickBooks Online balances powerful financial tools that grow with your business at a reasonable cost compared to hiring a full-time accountant or bookkeeper,” explains Ben Reynolds, CPA and accounting advisor at QuickBeans Consulting.

QuickBooks Payroll and Add-On Services

In addition to the base accounting subscription plans, QuickBooks offers payroll, bookkeeping, tax, and other services for additional fees.

You might also like our articles about the cost of ADP Payroll, Paychex Payroll, or H&R Block.

QuickBooks Online Payroll

• Starts at $50 per month plus $6 per employee
• Upgrades available:
  • Premium Payroll – $100/month + $8 per employee
  • Elite Payroll – $130/month + $11 per employee

Payroll automatically calculates payroll taxes and deductions, and seamlessly integrates the data with QuickBooks Online for simplified reporting, profit analysis, and tax preparation.

QuickBooks Live Bookkeeping Services

Packages include:

• Assisted cleanup and catch-up – $50 per month
• Full-service ongoing bookkeeping – $300 per month with initial setup fee

Qualified bookkeepers handle everything from data entry to reconciliations, accounts payable/receivable, financial report generation, and more.

Tax Forms, Payments, Check Printing, and Apps

Other additional fees:

• Tax Forms – Start at $17.99 per state for W-2s and 1099-MISCs
• Check Printing – Prices start at $46.26 for a box of 50 basic checks
• Payments – 2.4% + $0.25 per in-app payment transaction
• 750+ App Integrations – Some free, while others have monthly fees

QuickBooks Online Helps You Save

While QuickBooks Online costs more than some competing platforms upfront, the right plan can help your business save money in many ways:

• Spend less time on bookkeeping with automated workflows, invoicing, reporting, and reconciliation. Estimated monthly time savings range from 10 to 30+ hours for many users.
• Tax savings and planning from accurately categorizing expenses, running profitability reports, and preparing comprehensive documentation for accountants.
• Prevent costly errors with features like receipt capture, reminders/alerts, double entry bookkeeping, robust reporting, and expert integrations. Mistakes can lead to IRS fines, distressed cash flow, or poor business decisions without proper visibility.
• Minimize accounting labor costs – Handle more financial management tasks without hiring dedicated bookkeeping staff. Integrated payroll also reduces HR overhead.
• Optimize cash flow – Features like recurring invoicing, bill pay, profitability analysis, accounts receivable tracking, and collections tools keep cash flowing optimally.

QuickBooks Online vs the Competition

Here is an overview of how QuickBooks Online’s plan pricing stacks up against competitor accounting platforms:

• Xero – Offers similar features and integrations to QuickBooks, with plans ranging from $19 to $90 monthly. QuickBooks has more brand recognition in the US, while Xero focuses more on international markets.
• FreshBooks – Slightly more affordable, with plans from $19 to $79 monthly. Streamlined and user-friendly but QuickBooks provides richer reporting and customization capability.
• Wave – Provides free basic accounting for very small businesses and freelancers, then upsells add-ons. Lacks payroll, tax prep, and live support offered by QuickBooks plans.
• Zoho Books – Also starts with a free tier, then paid plans from $9 to $29 monthly. Targets micro businesses so lacks enterprise features offered in QuickBooks Advanced.

For small business owners seeking rock-solid accounting software, QuickBooks Online remains the first choice recommended by most CPAs and advisors. The combination of brand authority, comprehensive features, usability, payroll integrations, and support availability justifies the subscription cost for most established small businesses.

Expert Insights

We asked small business accounting professionals for their take on making the most of QuickBooks Online:

“Take advantage of discounts like 50% off for the first 3 months when signing up for QuickBooks Online. Trying before you buy helps assess whether the capabilities justify the price,” suggests Ben Reynolds, CPA and advisor with QuickBeans Consulting.

“Accounting needs evolve, so reevaluate your plan tier yearly as your business grows. Switching tiers is easy to get the features that best fit your current size and accounting needs,” recommends Reynolds.

“Businesses spending over $2,000 annually on bookkeeping assistance should consider QuickBooks Online Advanced to automate processes. The capabilities mean you rely less on outsourced accounting costs,” says Carla Simmons, small business bookkeeper.

Evaluating QuickBooks Online Plans

Here are some essential factors to weigh when picking your ideal QuickBooks Online subscription plan:

• Consider both your current accounting needs along with future growth plans. Will more advanced capabilities quickly become necessary?
• Weigh the number of users that will access the account now and down the road. Purchase enough seats for your team.
• Do you sell products or services? Plan tiers align best with specific business models.
• Calculate total costs including add-ons like payroll, apps, bookkeeping services, and tax forms. These can add significantly to monthly costs.
• Take advantage of any discount promotions when first signing up to maximize savings. Discounts range from 20% to 60% off for first-time subscribers.

Choosing the Right QuickBooks Plan

“I typically recommend QuickBooks Online Essentials as the best starting point for most small businesses,” says Ben Reynolds, CPA and small business advisor. “It offers core accounting tools plus multi-user access at a reasonable monthly price.”

“For product-based businesses, explore QuickBooks Online Plus capabilities around inventory management, sales channels, and custom fields before assuming Essentials will suffice,” suggests Reynolds. “The right features now spare headaches as you scale.”

“Don’t overpay for unnecessary features, but also make sure to get a plan that handles your current and near-future needs,” recommends Carla Simmons, bookkeeping professional. “QuickBooks offers scalable tiers so you can change plans as your business evolves.”

Final Words

QuickBooks Online provides industry-leading accounting software and financial management solutions tailored to small businesses at a reasonable cost. But entreprises have unique needs and budgets.

Take time to evaluate the pricing tiers, add-on fees like payroll and apps, available discounts, and how costs compare to alternative platforms. This allows you to make the optimal QuickBooks Online buying decision for your financial situation, accounting needs, and stage of business growth.