Running a small business often means wearing many hats and handling all aspects of operations. Most business owners would likely agree that bookkeeping and accounting tasks can feel overwhelming amidst everything else.
Luckily, solutions like Intuit QuickBooks Online aim to simplify small business accounting and financial management. With QuickBooks Online, users can efficiently track income and expenses, generate financial statements, and monitor cash flow from anywhere.In this review, we'll explore how QuickBooks Online stacks up for growing SMBs in need of robust yet easy-to-use accounting software.
We'll overview key capabilities like invoicing, reporting, and integration features. We'll also discuss limitations to consider and ideal user profiles that can benefit most from QuickBooks Online. By the end, you'll understand if QuickBooks Online is the right cloud accounting choice as your business scales.
Introduction to QuickBooks Online
QuickBooks Online (QBO) is a cloud-based accounting software application launched by Intuit in 2008. It was designed to provide small and medium-sized businesses (SMBs) with an affordable, user-friendly option to manage key financial processes like invoicing, expense tracking, reporting, and more without needing to install complex desktop software.
Over the past decade, QBO has become one of the most widely-used SMB accounting platforms. Its intuitive interface, robust feature set, secure cloud access, and seamless integration with other business apps has fueled rapid adoption across a range industries.
Overview of QuickBooks Online
As a cloud-based platform, QBO allows users to access their financial data from anywhere via desktop or mobile devices. Core capabilities include:
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Invoicing and estimates
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Expense and income tracking
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Bank reconciliations and transactions
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Financial reporting and analysis
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Payroll management
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Taxes
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Inventory monitoring
QBO connects to bank accounts, credit cards, POS systems, and other business apps to automatically import transaction data. This saves significant time by reducing manual data entry.
Robust reporting allows users to generate real-time insights into cash flow, profits & losses, sales tax liabilities, account reconciliation status, and more. These insights help inform better financial decisions.
History and Market Position
Intuit launched QuickBooks Online in 2008 as demand grew for cloud-based financial tools accessible from anywhere, without needing desktop software installation.
Over the past decade, QBO has quickly become the #1 accounting platform for SMBs. As of 2022, QBO holds over 50% market share in the United States among small business accounting software.
Millions of small businesses now use QBO as their central financial hub to manage billing, get paid faster, track expenses, monitor cash flow in real-time, and simplify tax preparation.
Key Benefits and Advantages
The most notable upsides and value propositions of using QBO for small business finances are its accessibility, scalability, and integration capabilities.
Accessibility and Mobility
QBO offers anytime, anywhere access to financial data and tools through its web-based platform and mobile apps. Key benefits include:
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Access QBO on all devices with an internet connection, including desktops, laptops, tablets, and smartphones
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Native iOS and Android apps provide full mobile functionality
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Work from home, office, or on the go with equal convenience
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Collaborate in real-time with accountants and bookkeepers
With cloud access built-in, QBO provides mobility and flexibility for business owners and finance teams to manage finances and accounting tasks conveniently.
Scalability
As a cloud-based solution, QBO scales easily with business growth. Key scalability benefits:
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Effortlessly add or remove users as the team expands or downsizes
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Adjust subscription plans to match usage needs and budget
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Integrates with popular SaaS tools like payroll, POS, ecommerce, and more
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No local storage limitations for large data sets
QBO's scalability simplifies financial management for any stage of business growth. Usage and access can flex to match operational needs.
Integration Capabilities
With over 750 third-party app integrations, QBO interoperates with many popular business platforms.
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Bi-directional sync with POS systems like Square and Clover
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Automate data flows from ecommerce platforms such as Shopify and WooCommerce
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Integrated payroll from Gusto, ADP, and other providers
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Robust developer platform for custom connections
These native and third-party integrations streamline financial workflows and reduce manual data entry. QBO can serve as a central financial hub connected to everyday business platforms.
Core Accounting Capabilities
Invoicing
QuickBooks Online (QBO) provides robust tools for creating professional invoices and managing the invoicing workflow. Key features include:
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Customizable invoice templates with logo and branding
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Ability to create recurring invoices for regular services
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Online payment processing and tracking
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Automatic sync between invoices and accounting
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Reporting on invoices outstanding, paid, overdue, etc.
With QBO, users can quickly generate invoices, send them to clients via email, and accept online payments seamlessly. The software tracks payments and automatically reconciles invoices when paid, keeping the books up-to-date.
Expense Tracking
QBO enables businesses to track various expenses for reimbursement, tax deductions, and cash flow analysis. Users can:
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Capture expenses via mobile app with receipt images
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Categorize expenses (travel, office supplies, etc.)
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Match expenses to clients for billable reimbursements
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Integrate corporate card expenses for auto-sync
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Run reports on expenses by category, employee, client, and more
The tool simplifies expense tracking with automated data feeds and flexible categorization. Managers gain visibility into expenses and can better analyze spending over time.
Bank Reconciliations
Connecting business bank, credit card, and loan accounts to QBO allows for automated matching and reconciliation. Benefits include:
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Automatic import of latest transactions from connected accounts
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Matching algorithm that pairs imported transactions with recorded payments/deposits
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Reconciliation reports that identify mismatches for easy correction
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Up-to-date cash flow reporting based on reconciled transactions
By reducing manual reconciliation tasks, QBO saves significant time and minimizes errors. The automated connections ensure accounting records mirror the real bank balances.
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Reporting and Analysis
Reporting and analysis features are critical for businesses to gain insight into their financial data. Intuit QuickBooks Online provides several options to visualize information to inform decisions.
Standard Reports
QuickBooks Online automatically generates commonly used financial reports, including:
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Profit and Loss Statement - View revenue, expenses, and profitability over time.
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Balance Sheet - Gain insight into assets, liabilities, and equity.
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Cash Flow Statement - Understand cash inflows and outflows.
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Accounts Receivable and Accounts Payable Aging - Manage customer payments and vendor bills.
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Sales Tax Liability - Ensure accurate sales tax calculations and payments.
These standard reports provide an overview of key financial metrics, updated in real-time as new transactions occur. The intuitive interface allows users to filter date ranges, compare periods, and export to Excel with one click.
Custom Reports
In addition to standard reporting, QuickBooks Online enables users to create customized reports tailored to their business's specific needs. Options include:
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Building from scratch or editing existing reports
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Selecting specific data fields to include
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Custom column ordering and naming
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Filtering by date, customer, item or other parameters
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Adding formulas such as percentages or margins
With some SQL knowledge, advanced users can write custom queries to manipulate the data and display it as needed.
Visualizations and Dashboards
To help identify trends and opportunities, QuickBooks Online offers interactive visualizations of financial data, including:
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Charts - Bar, line, pie and other graph types
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Key performance indicator dashboards - Customizable display of critical metrics
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Mapping - Visualize data by geographic parameters
The visualization tools make it easy to spot patterns, compare metrics over time, and share insights with stakeholders. Users can create multiple dashboards for different aspects of the business.
With robust reporting, customization, and data visualization, QuickBooks Online provides the actionable financial insights growing businesses need to make data-driven decisions. The intuitive tools allow users to analyze their data, identify opportunities for improvement, and track performance over time.
Limitations to Consider
QBO offers many benefits, but it's important to consider some potential limitations before deciding if it's the right solution for your business.
Learning Curve
Transitioning to any new accounting software can involve a learning curve. QBO has a user-friendly interface, but it still has a wide range of features that may take some time to fully understand and utilize effectively, especially for larger product catalogs. Setting up and customizing the software is fairly intuitive, but mastering advanced reporting and workflow automation capabilities can require more learning.
Inventory Management
While QBO provides all the basic inventory tracking features most small businesses need, it lacks some advanced capabilities offered by higher-end solutions. For example, there is limited support for multiple warehouse/location tracking, lot and serial numbers, and advanced bill of materials features. If your business has complex inventory needs, traditional QuickBooks desktop or an industry-specific solution may be better suited.
Customer Support
Intuit offers 24/7 customer support via phone, chat, and self-help resources which is sufficient for most small business needs. However, direct 1-on-1 support options are primarily reserved for premium support plan subscribers. So businesses with more complex setups or specialized needs may require paying extra for priority service and access to senior support reps. Phone wait times can also be longer during peak tax seasons.
Ideal Users
The Intuit QuickBooks Online (QBO) accounting software is best suited for small and medium-sized businesses (SMBs) in certain use cases where it can provide the most value.
Startups
QBO is easy to set up and use, making it a great choice for early-stage startups who need to get their financial tracking and reporting up and running quickly. Key benefits for startups include:
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Intuitive interface that is easy to navigate with little accounting experience
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Scales as your business grows so you don't need to switch platforms later
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Integrates with other software like payroll, POS systems, etc. saving you hassle
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Mobile app allows you to manage finances from anywhere
With QBO handling your books, you can focus energy on sales, marketing, product development and other startup priorities. It removes a common pain point so you can accelerate growth.
Mobile Businesses
For companies frequently on the go like field services, QBO offers accessible cloud-based financial management accessible from any device. You get:
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Real-time reporting to make data-driven decisions on the fly
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Mileage tracking for field reps and accounting of reimbursements
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Invoice creation and receivables management while meeting clients
By centralizing financial data in the cloud, managers and accounting can access QBO to provide support no matter where employees are located. The flexibility and mobility gives mobile businesses an edge.
Light Manufacturing
QuickBooks Online is a reasonably priced solution for small manufacturing firms that want better visibility and tracking across inventory, orders, shop floor activities, etc. Benefits include:
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Custom fields for tracking jobs, assemblies, and components
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Barcode scanning to simplify inventory counts and order fulfillment
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Bill of Materials and inventory reports to optimize ordering
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Shop floor data import from external apps
While QBO has limits in handling complex manufacturing needs, it provides a good foundation for light manufacturers to improve workflow, inventory management, and reporting accuracy.
Conclusion and Recommendation
QuickBooks Online is best suited for growing SMBs that need a scalable accounting platform optimized for small business growth stages. As an industry-leading cloud accounting software, it offers top choice for affordable and accessible accounting capabilities to manage financial operations.
Best For Growing SMBs
QuickBooks Online provides the features and flexibility growing SMBs need as they scale their operations. Key advantages include:
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Easy to set up and use even for beginners. Intuitive interface with robust training resources.
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Flexible subscription plans to upgrade as the business grows. Scales from 1 to 100+ users.
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Integrates with many other business applications through open API. Connects CRM, POS, payroll and more.
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Real-time reporting and dashboards provide insights into financial performance.
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Remote access from anywhere via web and mobile apps. Supports distributed teams.
With strong accounting capabilities tailored for SMBs, QuickBooks Online simplifies financial management through the various stages of business growth.
Leading Cloud Accounting Choice
As a pioneer in cloud accounting software, QuickBooks Online is a top choice for an affordable, accessible, and modern platform to manage business finances.
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Cloud-based and accessible from any device with an internet connection.
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Intuitive interface and navigation modeled after desktop version.
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Bank-level security and automatic backups safeguard business data.
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Regular software updates provide latest features and improvements.
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US-based customer support team provides helpful guidance.
For SMBs seeking a proven, user-friendly accounting solution, QuickBooks Online delivers essential financial tools with the convenience of the cloud.
