When it comes to choosing the right accounting software for your business, making sense of all the available options can be overwhelming. QuickBooks Online is one of the most popular cloud-based accounting platforms, and it offers several plans designed to meet different business needs. Two of the top-tier plans in the QuickBooks Online lineup are Plus and Advanced. In this blog post, we will walk you through the differences, features, benefits, and considerations of QuickBooks Online Plus vs. QuickBooks Online Advanced so that you can decide which plan is the right fit for your business.

QuickBooks Online has gained global popularity, with millions of customers relying on it for managing income and expenses, invoicing, payroll, and more. The platform is available in various plans ranging from Simple Start for very basic needs through Essentials and Plus up to Advanced. For many small and growing businesses, the decision often comes down to choosing between QuickBooks Online Plus and QuickBooks Online Advanced.

The “Plus vs. Advanced” debate centers on factors such as user capacity, enhanced features, reporting capabilities, and pricing. This post will cover:

• An overview of QuickBooks Online plans
• Detailed feature comparisons between Plus and Advanced
• Pricing, scalability, and advanced functionalities
• Use-case scenarios for small-to-medium businesses versus larger, growing companies
• How to decide which plan works best for your business

QuickBooks Online: An Overview of the Plans

QuickBooks Online offers a range of plans to suit different business sizes and needs:

• Simple Start: A basic plan ideal for new or sole proprietorship businesses that need simple double-entry accounting.
• Essentials: A step up with additional features such as recurring transactions and better user management.
• Plus: Designed for growing businesses that need enhanced tracking such as inventory and project profitability.
• Advanced: Tailored for medium to large businesses with complex workflows, more users, customized security permissions, and enhanced reporting.

While Simple Start and Essentials are meant for basic financial management, the decision between Plus and Advanced is critical once your business begins to scale and your accounting needs become more complex.

QuickBooks Online Plus: What It Offers

QuickBooks Online Plus is a robust solution for businesses that require more advanced features than the basic plans can deliver. Here are some of its key features and advantages:

Key Features of QuickBooks Online Plus

• Inventory Tracking: Plus allows you to track inventory items, update costs, and even calculate the cost of goods sold using FIFO (first in, first out). This is essential for product-based businesses that need to stay on top of stock levels.
• Project Profitability: With features to track income and expenses by project, Plus can help you monitor the profitability of individual projects. This is especially useful for service providers and construction companies who want to compare estimated versus actual costs.
• Customizable Invoices: Customize invoices to reflect your brand. You can add logos, change colors, and modify templates to create professional-looking invoices.
• Contractor Management: Manage contractors, including tracking data relevant to the preparation of form 1099.
• Class and Location Tracking: Plus allows you to track financial data by class or location, giving you insights into the performance of different departments or business segments.
• User Access for Small Teams: Suitable for up to five users, making it ideal for small organizations or teams of emerging businesses.
• Other Standard Features: All QuickBooks Online plans include secure cloud storage, mobile apps for both iPhone and Android, free support, customizable dashboards, bank-level security, and unlimited invoicing.

Who Should Consider QuickBooks Online Plus?

If you are running a small to medium-sized business with up to five users and you need basic inventory tracking or project-based profitability features, QuickBooks Online Plus might be all you need. It offers a solid middle ground between the simplicity of lower-tier plans and the advanced features that larger businesses might require later on.

For businesses that mainly rely on essential accounting functions, manage a moderate number of transactions, and have relatively straightforward workflows, Plus delivers a perfect blend of functionality and affordability.

QuickBooks Online Advanced: What Sets It Apart

QuickBooks Online Advanced is the next step up from Plus, created with larger businesses and growing companies in mind. It not only includes all the features available in Plus but also adds several functionalities that cater to more sophisticated accounting needs.

Key Features of QuickBooks Online Advanced

• Scalability for Larger Teams: Advanced supports up to 25 users, making it ideal for businesses that are expanding their teams. If your company is rapidly growing and you anticipate adding more users, Advanced provides the capability without additional per-user fees.
• Enhanced Reporting and Analytics: One of the standout features of Advanced is the inclusion of robust reporting powered by tools like Fathom. Users can generate dynamic, presentation-ready reports and dashboards that offer deeper insights into key performance indicators (KPIs) and financial data.
• Custom User Permissions: With Advanced, you can define role-based permissions in a granular way. This means you can control what each user sees and does, ensuring sensitive financial information is accessible only to those who need it.
• Batch Invoicing and Expensing: Advanced allows you to send invoices and record expenses in batches. This feature simplifies repetitive tasks, saves time, and minimizes the risk of data entry errors.
• Automation and Custom Workflows: Advanced supports more automation, including rule-based workflows, reminders, and triggers. These features streamline everyday tasks, reducing manual intervention and improving efficiency.
• Dedicated Customer Support: Advanced users often receive the benefits of QuickBooks Priority Circle, which includes access to a dedicated Customer Success Manager. This premium support feature ensures that any technical issues or questions are addressed promptly.
• Advanced Training Resources: The plan includes free training credits, offering online classes to help your team quickly adapt to the platform and leverage its advanced features.
• Unlimited Chart of Accounts, Classes, and Locations: Unlike Plus, which has limits on the number of accounts, classes, or locations you can create, Advanced allows you to have unlimited options. This is crucial for enterprises that need granular tracking of multiple departments or business entities.

Who Should Consider QuickBooks Online Advanced?

If your business is scaling beyond the limitations of five users, requires more powerful reporting, and involves complex financial transactions, QuickBooks Online Advanced is designed for you. It caters to medium to large-sized businesses with evolving needs in inventory management, multiple location tracking, and real-time data analytics.

For companies with a complex organizational structure—such as those managing multiple departments, functioning across various locations, or handling detailed project-based accounting—Advanced is not just an upgrade; it’s a necessity. The advanced features and dedicated support help ensure that your financial workflows remain seamless, even when your operations become more complicated.

Pricing Comparison: Plus vs. Advanced

Understanding the pricing structure can help you balance feature requirements with your budget. While prices can vary based on promotions and regions, a typical comparison might look like this:

• QuickBooks Online Plus: Priced around US$40 per month (given the pricing examples provided in some promotions). This cost includes the necessary features for a moderately sized business with up to five users.
• QuickBooks Online Advanced: Priced at about US$76 per month, roughly double the Plus plan. Although Advanced comes at a higher cost, it includes additional capabilities such as support for up to 25 users, advanced reporting tools, dedicated customer support, and unlimited customization options.

While the jump in price might seem steep, the added functionalities in Advanced are aimed at businesses that require scalable solutions and automation tools to manage complex workflows and increased data volumes. For many growing businesses, the investment in QuickBooks Online Advanced is justified by improved efficiency and deeper insights into financial performance.

Feature Comparison: Breaking Down the Differences

Let’s dive deeper into how features compare between QuickBooks Online Plus and Advanced. Understanding these differences will help you gauge which features are essential for your business operations.

User Capacity and Access

• Plus: Supports up to 5 users. This is perfect for small businesses or startups where only a few team members directly manage financial data.
• Advanced: Supports up to 25 users. Ideal for larger teams or organizations experiencing rapid growth. Plus offers standard user roles, while Advanced allows for detailed role-based access control, ensuring that sensitive data is visible only to authorized personnel.

Inventory and Project Management

• Plus: Offers robust tools for tracking inventory levels, calculating the cost of goods sold, and monitoring project profitability. Businesses can track income and expenses by project or location, making financial analysis easier.
• Advanced: In addition to the features in Plus, Advanced provides more sophisticated project management and reporting capabilities. With unlimited classes, locations, and accounts, Advanced is better suited for businesses with multiple projects or branches that need detailed performance insights.

Reporting and Analytics

• Plus: Delivers over 110 customizable reports that cater to standard financial scenarios, including balance sheets, profit and loss statements, and sales trends.
• Advanced: Takes reporting to the next level with enhanced tools like Fathom. This enables users to create dynamic, presentation-ready dashboards, schedule automated report emails, and perform consolidated reporting across multiple business units. The advanced analytics capabilities are particularly useful for in-depth performance tracking and strategic analysis.

Automation and Workflow Customization

• Plus: Provides essential automation features such as recurring invoices and automatic bank reconciliations. It helps reduce manual data entry and simplifies routine tasks.
• Advanced: Offers a suite of additional automation options including batch invoicing, batch expensing, and rule-based workflows. These tools are designed to streamline operations further and minimize repetitive tasks—saving valuable time as your business scales.

Customer Support and Training

• Plus: Access to standard customer support through phone and online channels. This support is usually sufficient for businesses with straightforward needs.
• Advanced: Includes membership in QuickBooks Priority Circle, which features a dedicated Customer Success Manager and faster response times for support issues. Additionally, Advanced users receive free training resources, which can be a huge advantage for larger teams requiring onboarding or ongoing technical support.

Use-Case Scenarios: Which Plan is Right for Your Business?

Choosing between Plus vs. Advanced ultimately comes down to assessing your business needs. Below are some scenarios to help you determine which plan might be best for you.

Scenario 1: A Growing Small Business

Imagine you run a retail operation with a modest team of five staff members. You manage inventory, produce invoices, and track sales across one or two store locations. The day-to-day transactions are steady, and your projects are relatively straightforward. In this case, QuickBooks Online Plus might be the perfect solution. It provides all the core features you need without unnecessary complexity.

Scenario 2: A Scaling Business with Complex Workflows

Consider a medium-sized business that is expanding rapidly. You are adding new departments, tracking multiple projects, and require enhanced reporting capabilities to analyze performance across various locations. You might even have a growing number of employees exceeding the five-user limit. Here, QuickBooks Online Advanced offers the necessary scalability and robust tools, such as customizable workflows and advanced analytics, ensuring that as your operations become more complex, your accounting system grows with you.

Scenario 3: Companies Needing Detailed Security and Role-Based Access

If your business handles sensitive financial data and you require detailed permissions for different types of users, QuickBooks Online Advanced will allow you to set up granular access controls. This means you can designate which employees see only the data they need, reducing the risk of errors or unauthorized access—a critical feature for larger teams.

Scenario 4: Businesses Focused on Advanced Reporting and Strategic Insights

For businesses that thrive on data-driven decision-making and need comprehensive reports to guide strategic planning, the enhanced reporting tools in QuickBooks Online Advanced are invaluable. The ability to generate consolidated, multi-dimensional reports will empower you to draw insights from your financial data quickly and efficiently.

Making the Decision: Factors to Consider

When evaluating whether QuickBooks Online Plus or Advanced is right for you, keep these factors in mind:

• Business Size: Smaller teams with limited users might find Plus perfectly adequate, while larger teams will benefit from Advanced’s higher user capacity.
• Growth Potential: If you foresee rapid expansion or additional users in the near future, investing in Advanced can save you the hassle of switching plans later.
• Feature Requirements: List out the accounting processes most critical to your operations. If advanced reporting, customizable workflows, and enhanced security are non-negotiable, Advanced makes sense.
• Budget: While Advanced comes at a higher cost, consider the value of time saved through automation, improved data insights, and dedicated support. For many growing enterprises, the additional investment is well worth it.
• Industry Requirements: Businesses in manufacturing, construction, or multi-location retail often have more complex accounting needs that Advanced is tailored to address.

Tips for Transitioning Between Plans

For those who are unsure, one strategy is to start with QuickBooks Online Plus and monitor your business needs. Many companies begin with Plus and then upgrade to Advanced as their complexity and user base grow. Transitioning from Plus to Advanced is a seamless process, and QuickBooks offers guidance and support to help you migrate your data without interruption.

Here are some tips for a smooth transition:

• Evaluate Regularly: Set milestones or check-ins to assess if the current plan meets your needs. Analyze growing pain points in reporting, user access, or workflow automation.
• Consult Support: Reach out to QuickBooks support if you are nearing your plan’s limits. They can guide you on whether it’s time for an upgrade.
• Training & Onboarding: Use any free training resources offered with Advanced. They can help your team quickly adapt to the new functionalities and maximize productivity.
• Data Backup: Always ensure that your data is safely backed up before transitioning. QuickBooks Advanced offers continuous backups, which gives added protection during migration.

Final Thoughts

In the battle of Plus vs. QuickBooks Advanced, there is no one-size-fits-all answer—each plan is tailored for different business sizes and needs. QuickBooks Online Plus offers a comprehensive suite that is more than sufficient for many small to medium-sized businesses. It provides essential features such as inventory management, project profitability tracking, and basic reporting capabilities, all while supporting up to five users.

On the other hand, QuickBooks Online Advanced is built for growing enterprises and businesses with complex workflows. Its ability to support up to 25 users, combined with advanced reporting options, customizable workflows, and dedicated customer support, makes it an excellent choice if your business is expanding, requires granular role-based permissions, or demands deeper insights into financial operations.

Before making your decision, analyze your current business processes, growth trajectory, and budget constraints. Consider the key differences discussed in this blog post, and evaluate how each plan aligns with your unique business requirements.

Remember, the right accounting software is not just about managing books—it’s a strategic tool that can streamline operations, save time, and provide valuable insights that drive better decision-making. Whether you choose QuickBooks Online Plus or opt for the enhanced functionalities of QuickBooks Online Advanced, the end goal is to empower your business with the tools it needs to thrive.

Conclusion

The decision between QuickBooks Online Plus and Advanced essentially comes down to your business size, complexity, and growth plans. For small businesses with straightforward financial needs, Plus offers an affordable yet powerful solution. For businesses poised for rapid expansion or those that require advanced reporting, automation, and security, QuickBooks Online Advanced provides the necessary features and scalability.

We hope this detailed comparison between Plus vs. QuickBooks Advanced helps you make an informed decision about which plan will best support your business workflows now and in the future. If you’re still on the fence, consider starting small with Plus and upgrading to Advanced when your business outgrows its current features—all while taking advantage of QuickBooks’ seamless migration options and robust support resources.

Take a moment to assess your business needs, explore your current transaction volumes, growth plans, and team dynamics. With detailed insights into features, user capacity, and pricing, you’re well-equipped to choose the plan that will keep your accounting accurate, your financial reports detailed, and your business on the path to success.

Ultimately, whether you choose Plus or Advanced, QuickBooks Online remains one of the most trusted names in cloud-based accounting. Embrace the solution that fits your current needs and scales with you as your business moves forward.

By making an informed choice today, you’re setting the foundation for a more organized, efficient, and agile financial future. Happy accounting!

Feel free to share your thoughts or questions in the comments below. We're here to help you choose the best tool for your unique business requirements.