QuickBooks Online is a popular accounting software used by small businesses and self-employed individuals. With its user-friendly interface and comprehensive features, it has become a go-to choice for managing finances. However, one of the most common questions asked by potential users is, “How much does QuickBooks Online cost?”
In this article, we will break down the cost of QuickBooks Online and help you understand its fee structure.
QuickBooks Online Cost Breakdown
Before delving into the details of QuickBooks Online, it is crucial to highlight the fact that the software platform provides a generous 30-day free trial for individuals who are new users. This trial period grants users the opportunity to explore and experience the various tools, features, and functionalities that QuickBooks Online has to offer without any financial commitment or obligation to subscribe to a paid plan.
This trial period is designed to give users a comprehensive understanding of the software’s capabilities and how it can effectively meet their specific accounting and financial management needs.
Pricing Tiers
QuickBooks Online offers four different subscription plans: Simple Start, Essentials, Plus, and Advanced. Each plan offers different features and is priced accordingly. Here is a breakdown of the cost for each plan:
- Simple Start: $25 per month
- Essentials: $40 per month
- Plus: $70 per month
- Advanced: $150 per month
Additional Fees
In addition to the subscription plans that are available for your business, it is important to note that there may also be additional fees that could apply depending on the specific needs and requirements of your business. These additional fees are designed to cover any extra services or features that you may require in order to fully meet your business objectives. Some examples of these fees include custom development work, additional storage space, or advanced technical support.
By understanding and being aware of these potential additional fees, you can ensure that you are fully prepared for any potential costs that may arise as your business grows and evolves.
- Payroll: QuickBooks Online offers a payroll add-on for an additional cost. The cost varies depending on the number of employees you have and the features you need.
- Payment Processing: If you choose to use QuickBooks Online to process payments, there will be a fee for each transaction. The fee is 2.9% + $0.25 for credit card transactions and 1% for bank transfers.
- Add-ons: QuickBooks Online offers various add-ons such as inventory management, time tracking, and project management for an additional cost.
QuickBooks Cost: Fee Structure
Now that we have a general understanding of the cost breakdown, let’s take a closer look at the fee structure of QuickBooks Online.
Monthly Subscription
One of the main financial considerations of utilizing QuickBooks Online is the recurring monthly subscription fee that users must pay. This fee can fluctuate based on the specific plan that the individual or company selects. Among the available options, the Simple Start plan is the least expensive, offering basic features and functionality for those on a budget. Conversely, the Advanced plan is the priciest option, providing a wide range of advanced features and tools for businesses with more complex needs.
Ultimately, the cost of using QuickBooks Online will depend on the plan that best suits the user’s financial constraints and operational requirements.
Per User Fee
Each subscription plan offers a designated capacity for the number of users who can access the account. The Simple Start plan, for instance, grants access to the account to one user only. On the other hand, the Essentials plan extends this privilege to up to three users. Similarly, the Plus and Advanced plans both accommodate up to five users.
However, in the event that you require additional users to be granted access to the account beyond the set limits of your chosen plan, there will be an extra fee incurred for each additional user added.
Payroll Fee
If you make the decision to use QuickBooks Online for your payroll processing needs, it is important to note that there will be an extra charge for each employee that you need to pay. The specific cost of this additional fee will depend on a variety of factors, including the particular features that you require for your specific business operations, as well as the total number of employees that you have on your payroll.
Should you opt to utilize QuickBooks Online as your preferred platform for managing your payroll responsibilities, it is vital to take into consideration the fact that there will be an added expense associated with each employee that you need to process payroll for.
The exact amount of this additional fee can fluctuate based on a variety of factors, including the specific features and functionalities that you deem necessary for your business operations, as well as the total count of employees currently on your payroll roster.
Payment Processing Fee
When using QuickBooks Online as your payment processing platform, it is important to note that there will be additional fees associated with each transaction. These fees are not included in your subscription fee and are charged separately by a third-party payment processor. For credit card transactions, the fee is calculated at 2.9% of the total amount plus an additional $0.25 fee per transaction.
On the other hand, bank transfers incur a lower fee of 1% of the total amount. It is essential to factor in these fees when determining your overall costs for using QuickBooks Online as your payment processing solution.
Add-on Fees
QuickBooks Online, a popular accounting software, provides users with a wide range of add-ons that can be purchased for an additional cost. These add-ons serve to further enrich the functionality of the software and address the unique needs of different businesses. The pricing of these add-ons can vary greatly depending on the complexity of the features they offer as well as the number of users they will be utilized by.
Businesses can choose to invest in add-ons that will help streamline their financial processes and improve overall efficiency.
Your business is an asset. You should know its value and understand how to maximize it.
How to Save on QuickBooks Online Cost
Now that we have a better understanding of the fee structure, let’s explore some ways to save on QuickBooks Online cost.
Choose the Right Plan
When looking to save on QuickBooks Online cost, the initial step is to carefully consider and select the most suitable plan for your business requirements. It is important to assess the size and complexity of your business operations to determine which plan will provide the necessary features and functionality. For small businesses with straightforward accounting needs, the Simple Start plan could be a cost-effective option. On the other hand, larger businesses with more intricate accounting requirements may benefit from the enhanced capabilities offered by the Plus or Advanced plan.
By choosing the plan that aligns with your business needs, you can ensure that you are getting the most value for your investment in QuickBooks Online.
Take Advantage of Promotions
QuickBooks Online frequently runs special promotional offers and provides discounts to entice new users to sign up for their services. These promotions are a great way for new customers to save money on their subscription fees and take advantage of the many features and benefits that QuickBooks Online has to offer. By staying vigilant and keeping an eye out for these promotions, you can maximize your savings and get the most value out of your subscription to QuickBooks Online.
Utilize Free Features
QuickBooks Online provides a wide range of beneficial features that are available for free, allowing users to effectively manage their finances without having to incur additional costs. One such feature is the free mileage tracker, which enables individuals to monitor and record all business-related travel expenses in a convenient and efficient manner. By utilizing this tool, users can avoid the need to purchase a separate add-on for mileage tracking, ultimately saving them valuable time and money in the process.
Become a Certified QuickBooks Specialist
Enroll in the QuickBooks Online Bootcamp, a specialized program presented by the Universal Accounting Center and led by Alicia Katz Pollock, a leading expert in QuickBooks Online (QBO). This comprehensive course is designed to provide practical insights and hands-on experience, catering to both bookkeepers and small business owners alike. Alicia’s wealth of knowledge is seamlessly integrated into the curriculum, ensuring a thorough learning journey.
The program is structured to establish a solid foundation for success. Upon completion, participants have the opportunity to validate their skills by taking a rigorous exam to attain certification as a Certified QuickBooks Specialist. This prestigious certification serves as a testament to your proficiency in QuickBooks, enhancing your credibility and expertise in the field and earning you greater professional recognition.
News
The IRS is urging those who didn’t file a tax return during the peak of the Covid-19 pandemic and believe they’re due a refund to take action. Over $1 billion in unclaimed refunds for the 2020 tax year are up for grabs, and eligible filers still have time to claim them. Thanks to pandemic-related extensions, the deadline to claim these refunds has been extended to May 17, 2024.
IRS Commissioner Danny Werfel emphasized the importance of not missing out on these refunds, with the median refund estimated at $932 for 2020. Individuals, including students and part-time workers, may have overlooked these refunds due to the unprecedented circumstances of the pandemic. The IRS advises taxpayers to review their records promptly to avoid missing the May deadline.
Moreover, low- and moderate-income workers might qualify for the Earned Income Tax Credit (EITC), potentially worth up to $6,660 for those with qualifying children in 2020. It’s crucial to note that 2020 tax refunds may be withheld if individuals haven’t filed tax returns for 2021 and 2022.
Conclusion
In conclusion, the cost of using QuickBooks Online can vary significantly depending on a variety of factors such as the subscription plan chosen, any additional fees that may be incurred, and the use of any available add-on features. Therefore, it is crucial for business owners to carefully assess their specific needs and objectives in order to select the most appropriate plan that will help maximize cost savings in the long run.
Moreover, it is worth noting that taking advantage of any ongoing promotions or discounts, as well as leveraging any free features offered by QuickBooks Online, can also contribute to reducing overall expenses associated with using this financial management tool.
Ultimately, with its intuitive and easy-to-navigate interface, as well as its comprehensive range of features tailored for businesses of all sizes, QuickBooks Online stands out as a valuable asset for effectively managing finances and could indeed prove to be a worthwhile investment for the future success of your business.
