Comparing Bookkeeping Platforms - #1 Quick Books Online

Choosing the right bookkeeping software is a crucial decision for any small business. The best choice depends on your specific needs, budget, and business type. This is part of a series of reviews of popular small business bookkeeping options with their pros and cons.

1. QuickBooks Online
QuickBooks Online is the industry leader, widely used by small businesses and their accountants. It's a robust platform with a wide range of features. (This is the platform I use in my bookkeeping business).

Pros
Extensive Features: Offers comprehensive tools for everything from invoicing and expense tracking to detailed reporting and inventory management.
User-Friendly: Despite its complexity, its interface is intuitive and easy to navigate, making it accessible even for those without an accounting background.
Scalability: QuickBooks Online has multiple pricing tiers and add-on features, allowing businesses to upgrade and add features as they grow - going from a one-person startup to a business with much larger payroll, invoicing and accounting needs.
Widespread Adoption: Most bookkeepers and accountants are familiar with QuickBooks, which simplifies collaboration and tax preparation. It is probably the best at allowing many people to work remotely.
App Integration: It integrates with hundreds of other business apps, from payment processors to e-commerce platforms.

Cons
Higher Cost: It's generally one of the more expensive options, especially as you add users or features like payroll.
Steep Learning Curve: While user-friendly, the sheer number of features can be overwhelming for brand-new users.
Customer Support Issues: Many users report long wait times and unhelpful customer support.
Limited Customization: While reports are customizable, some users find the invoice design options to be limited.
Can Be Overkill: For a very small business or freelancer, the temptation to include QuickBooks' advanced features may be unnecessary and an unnecessary added expense.

Comment: You really need to have a good, general understanding of bookkeeping/accounting principles to use Quick Books Online effectively, which is why its detractors point to cheaper and less powerful platforms like FreshBooks and Xero.

And if you are a one-person startup - the simpler and cheaper options tend to be better. But as your business grows in size and your accounting needs become more complicated, the simpler and cheaper platforms quickly start to underperform.

A large number of small businesses use a contract bookkeeper, like me, with Quick Books Online once you get to the point you can afford to have someone take bookkeeping off your hands. This frees you to concentrate on what you do best: grow your business.

NEXT: A look at FreshBooks