QuickBooks Online is the software-as-a-service (SaaS) or cloud version of QuickBooks, one of the most well-known accounting tools available to businesses. QuickBooks has been around since the early 80s, but the online version was launched in 2001. As one of the most widely-used accounting tools, many businesses use QuickBooks on a daily basis. There are a number of benefits this software tool provides, and those benefits can ensure that you always have updated account balances and fully understand your company’s financial status.
Let’s take a look at some of the most popular benefits QuickBooks Online offers and how this cloud version differs from the traditional QuickBooks Desktop offering.
Share Access Easily
Sharing your financial information with others in your company and with your bookkeeper or CPA is incredibly easy using QuickBooks Online. Since everything is stored in the cloud, there’s no need to email files back and forth or exchange flash drives with your information on them. You simply share access to the file with those who need it.
This not only makes access very simple and easy, but it also improves your security. Your sensitive financial information isn’t being sent via email, so you don’t have to worry about it being intercepted. There’s also no need to worry about someone losing the drive containing your information. With both of those methods of sharing information, once you’ve given someone the file, you don’t know what they will do with it or for how long they will keep it. With QuickBooks Online, you can simply remove access for a user once they no longer need to see your information. Once that’s done, they can no longer see your data.
In addition to the version of QuickBooks Online that runs on desktops and laptops, there’s also an app you can install on your smartphone or tablet. This app syncs with the data stored on the cloud, so you always have up-to-date information available with the tap of a few buttons. This means you can easily record transactions and create invoices at a trade show or other event where you may not necessarily have a computer in front of you.
Data is Backed Up to the Cloud
In addition to having more control over who has access to your information, QuickBooks Online also offers regular backups. You won’t have to worry about backing up data regularly or making certain your backups are up to date. Instead, all of your information is automatically backed up in the cloud. QuickBooks Online doesn’t just keep one backup, either—cloud servers create redundant backups to ensure that even if one server fails, your information can be retrieved.
You Can Take Advantage of Everything SaaS Offers
SaaS has a number of inherent benefits that a QuickBooks Online user can take advantage of. The first is that there is no software to install on your computer. SaaS programs work by accessing data on a server. You have access to your accounting software from any computer that has an internet connection because it’s stored in the cloud.
This also means you don’t have to worry about updating or applying patches to every computer that accesses QuickBooks Online. The update is applied to the cloud software, so it’s instantly available to anyone who logs in. If you have a copy of the software installed locally on multiple computers, every copy has to be updated. If one user fails to do this, it can leave a hole in your security that can be easily breached.
Scalability is another great feature. If you install software on each computer, you have to purchase a license and then have your system administrator install it. With SaaS applications, all you have to do is add a new subscription to your QuickBooks Online account. The user you add instantly has access to the application and your data. When you need to remove users, you simply cancel their subscription.
This makes QuickBooks Online more affordable, too. Buying a one-time piece of software is often very expensive, and you only get a single license. With a subscription model, you can add or remove users as needed, and you only pay for the number of active subscriptions. You’re not left with multiple copies of expensive software you paid full price for but no longer need.
While the desktop version of QuickBooks certainly has its uses, many small business owners may find that QuickBooks Online has everything they need.
QuickBooks Online vs QuickBooks for Desktop
(as of March, 2022)
Simple Start, Essentials, Plus, Advanced
Pro Plus and Premier Plus
|Lowest Cost Plan||$25/month (Simple Start)|
$349.99/year for a single user (Pro Plus)
Most Expensive Plan
|$180/month (Advanced)||$549.99 /year for a single user (Premiere Plus)|
Maximum Number of Users
25 users (Advanced plan)
plus three accountant accounts
|5 users (Premiere Plus)|
|Cloud-based, so no local software installation needed|
Software is installed on your PC.
|Scalability||Easily scale upward or downward by adding/canceling subscriptions at any time|
Each user needs their own copy of QuickBooks
|Shareability||Easily share your data with your bookkeeper by adding them as an accountant user|
Save your data as an accountant file and email it to them for use.
|Learning Curve/Usability||Easy to learn and use|
Pro Plus and Premier Plus are both easy to use
Note that there is a third version of QuickBooks, the Enterprise edition, that is aimed at large corporations.
It’s Easy to Learn
QuickBooks Online was designed to be a very accessible tool. This means there’s a low learning curve for new users. For those who have used a previous version of QuickBooks, it’s easy to jump right in and start using the cloud version. Small business owners with little to no accounting experience will find that they can set up a new QuickBooks file and start entering transactions within a few minutes.
While the intuitive design makes it easy to get started, some users may need a little more help. QuickBooks Online includes a full support system. You’ll find various articles and how-to documents in the help section. If you need more assistance, they have an online help desk where you can chat with a live representative.
It Makes Automation Easy
One tedious task your bookkeeper (or you as the business owner, if you don’t have a bookkeeper yet) has to do every month is put together account statements and send out invoices. This can take several days if you have a lot of clients. With QuickBooks Online, you can automate this process and take back that time. It’s easy to configure QuickBooks to automatically generate and even email invoices and other regular statements to your clients. Once you’ve set up a client in the system, you don’t have to do anything. QuickBooks can automatically insert their name and other information, then send them the invoice. If you do print invoices, QuickBooks can send these invoices to your printer as well.
If you have signed agreements, receipts, or other paper documents you need to attach to an account, QuickBooks Online makes that easy, too. You can scan the documents and attach them to the account. QuickBooks can then email these documents along with the invoice. If the client pays online, the transaction is automatically entered into QuickBooks, further reducing the amount of work you have to do and ensuring that the transaction isn’t missed. This automation also reduces errors made on invoices or in entering a transaction.
Inventory Tracking is Included
In addition to tracking your fiscal transaction, QuickBooks Online also offers inventory tracking. You can keep a list of your products and how many you have in stock in the system. When you invoice a client through QuickBooks, the system will automatically adjust the inventory counts accordingly. This means if you sell three of one item, your inventory for that item will automatically be reduced by three when you enter the transaction. There’s no need for a separate inventory system. By using QuickBooks for both, you again reduce the risk of errors or of transactions being missed.
Multiple Report Options
Reports are vital to seeing a full picture of your finances. QuickBooks Online gives you a wide range of different reporting options. Each report highlights different information you may need to make decisions regarding the future of your business. With these reports, you’ll always have the data you need. In fact, because everything is cloud-based, you can generate a report from anywhere. You can even access these reports via the QuickBooks Online mobile app, so you don’t even need to have a computer in front of you.
Pair QuickBooks Online with a Professional Bookkeeper for the Ultimate Accounting Setup
While QuickBooks Online is an amazing tool that anyone can use, it’s still just a tool. To draw true insights from its reports and fully understand your data, you need a professional bookkeeper on your side. These experts can suggest accounting best practices and implement processes that will always ensure your accounts are accurate and follow all relevant accounting standards. By combining QuickBooks Online and a knowledgeable bookkeeper, you’ll be able to grow your business and improve your bottom line. This is also the best way to ensure that your bookkeeper has access to all the information they need in order to file your taxes.
Need a Virtual Bookkeeper? Contact Protea Financial Today
Are you in need of a bookkeeper? Protea Financial offers virtual bookkeepers for businesses just like yours. Because all of our bookkeepers are virtual, you aren’t limited to professionals in your area. Our team is made up of some of the best bookkeepers in the country, and we’re ready to provide whatever financial assistance you need, whether it’s basic bookkeeping or a virtual CFO.
Our team is very familiar with QuickBooks Online and uses it to assist many of our clients. We can track your transactions, set up automated invoicing, create custom reports, and much more. We’ll also be there to help analyze your financial data and provide recommendations to help your business. If you’re ready to bring on a virtual bookkeeper or would like to learn more about how we can help you, contact Protea Financial today.
Letting the experts take over your bookkeeping tasks allows you to focus on your business. Contact us here at Protea Financial today, and let us help organize your books!