Choosing the right accounting software is one of the most important decisions for any business. For those already considering QuickBooks Online, the decision often narrows down to two top-tier options: QuickBooks Online Plus and QuickBooks Online Advanced. In this article, we will compare and contrast these two plans in detail—exploring features, pricing, user limits, reporting capabilities, automation, and the overall value they bring to small-to-medium and growing businesses.

Both QuickBooks Online Plus and QuickBooks Online Advanced provide robust accounting capabilities. Yet, they are designed to meet different business needs. Whether you run a small business with straightforward financial management requirements or you’re in a growth phase with complex reporting and multiple users, understanding the differences between Plus and Advanced can help you choose the plan that best fits your organization.

Overview of QuickBooks Online Plans

QuickBooks Online offers several subscription levels, each with its own features and pricing. The main plans include Simple Start, Essentials, Plus, and Advanced. While Simple Start and Essentials cover the basics needed for day-to-day accounting tasks, Plus and Advanced are designed for growing businesses that require more powerful features.

QuickBooks Online Plus:

• Ideal for small to medium-sized businesses.
• Supports up to 5 users.
• Offers features like inventory tracking, project profitability reporting, purchase orders, and class or location tracking.

QuickBooks Online Advanced:

• Built for larger businesses or those with growing complexity.
• Supports up to 25 users.
• Contains all the features found in Plus, with additional capabilities such as enhanced reporting, batch invoicing, advanced workflow automation, and dedicated customer support.

In the remainder of this article, we will focus on comparing Plus with Advanced to help you decide which plan suits your business requirements.

Key Features of QuickBooks Online Plus

QuickBooks Online Plus is an excellent option for businesses that need a balanced mix of functionality and affordability. Here are some of its key features:

Inventory and Purchase Order Tracking

• Inventory Management: Plus provides the ability to track inventory levels, calculate the cost of goods sold (COGS), and update inventory costs using FIFO (First-In, First-Out) or other methods.
• Purchase Orders: Users can create and send purchase orders (POs) to vendors, helping streamline purchasing processes.

Project Management and Profitability Tracking

• Project-Based Profit and Loss: Monitor income and expenditures for specific projects. This feature helps businesses understand project profitability and manage costs efficiently.
• Class and Location Tracking: Allocate income and expenses to different classes or locations. It is particularly helpful for businesses operating in multiple regions or departments.

Contractor and 1099 Management

• Contractor Management: Plus enables basic management of contractors, including preparation for issuing Form 1099 at year-end for independent contractors.

User Accessibility and Reporting

• Limited User Access: Plus supports up to 5 users. This is sufficient for many small businesses where only a few people need regular access to the system.
• Customizable Reports and Dashboards: Generate standard financial reports (Profit & Loss, Balance Sheet, and more) that help you track business performance and cash flow.
• Unlimited Invoicing: Business owners can create and send unlimited invoices, ensuring that no payment opportunity is missed.

These features make QuickBooks Online Plus ideal for small businesses with straightforward financial management needs. It offers everything most growing companies require at a reasonable price.

Key Features of QuickBooks Online Advanced

QuickBooks Online Advanced builds on the capabilities of Plus by adding a layer of advanced tools and flexibility. Here’s what sets Advanced apart:

Enhanced User Capacity and Customization

• Higher User Limit: Supports up to 25 users, making it an ideal option for businesses that have expanded their team or anticipate rapid growth.
• Custom User Permissions: Advanced allows administrators to create role-based user access controls. This means you can customize what each user sees and can do—a critical feature when handling sensitive financial data.

Advanced Reporting and Analytics

• Fathom-Enabled Reporting: QuickBooks Online Advanced includes smart reporting features powered by Fathom. This tool allows for dynamic, presentation-ready reports, benchmarking, and tracking key performance indicators (KPIs).
• Customizable Dashboards: Build dashboards that give you an at-a-glance view of your business’s financial performance, enabling more data-driven decision-making.

Automation and Workflow Capabilities

• Batch Invoicing and Expenses: Advanced simplifies repetitive tasks by allowing you to process batch invoices and record multiple expenses at once. This is a huge time-saver for businesses dealing with large volumes of transactions.
• Workflow Automation: With rule-based triggers and reminders, you can automate certain workflows. For example, you can set up alerts for overdue invoices or automatically send payment reminders.
• Data Backup and Restoration: Advanced provides automated backup options and restoration features, ensuring your data remains secure at all times.

Dedicated Support and Training

• Priority Circle Membership: Advanced subscribers receive membership in QuickBooks Priority Circle. This membership includes access to a dedicated customer success manager who can offer personalized technical support.
• Free Training Resources: Users of QuickBooks Online Advanced can access free training materials, often valued at several thousand dollars, which help teams maximize the software’s capabilities.

These additional features not only justify the higher price tag but also make Advanced a very attractive option for companies with more complex financial operations and larger teams.

Feature-by-Feature Comparison: Plus vs Advanced

Below is a side-by-side look at the main differences between QuickBooks Online Plus and QuickBooks Online Advanced:

FeatureQuickBooks Online PlusQuickBooks Online AdvancedUser LimitUp to 5 usersUp to 25 usersInventory TrackingYesYesProject Profitability ManagementYesYesPurchase OrdersYesYesCustomizable ReportingBasic custom reportsAdvanced reporting with Fathom integration, custom dashboards, and batch processingWorkflow AutomationLimitedYes, including rule-based triggers and remindersRole-based User PermissionsBasic access controlsFull customization for user roles and permissionsDedicated SupportStandard SupportPremium support with a dedicated customer success managerTraining ResourcesStandard resourcesFree training courses and extensive support materials

This table clearly shows that while Plus provides a robust suite of features for growing businesses, QuickBooks Online Advanced offers enhanced customization, automation, and reporting—features that become increasingly important as your business scales.

Pricing and Value Analysis

The decision between Plus and Advanced often comes down to pricing and the value those additional features provide.

QuickBooks Online Plus Pricing

• Generally, Plus is less expensive compared to Advanced.
• It is best suited to businesses that do not require more than five users.
• Plus offers essential business functions without the extra cost of advanced customization and reporting tools.

QuickBooks Online Advanced Pricing

• Advanced carries a higher monthly fee, which is justifiable by its additional features.
• Businesses that have or expect to have more than five users, require comprehensive customization, and benefit from advanced reporting should consider Advanced.
• The advanced automation features, extensive training resources, and priority technical support can significantly improve efficiency and reduce manual data entry work.

For businesses with complex operations, the extra investment in QuickBooks Online Advanced can pay off through improved analytical capabilities and streamlined workflows. On the other hand, for smaller organizations with simpler needs, Plus might be the most cost-effective option.

Who Should Choose QuickBooks Online Plus?

QuickBooks Online Plus is ideal for:

• Small to Medium-Sized Businesses: Companies that are just starting out or have modest growth expectations.
• Businesses with Fewer Users: Organizations where the team size is limited to five or less.
• Retailers and Contractors: Businesses that require robust inventory management, invoicing, and project cost tracking.
• Service-Based Companies: Companies that need to monitor project profitability and track expenses by class or location without complex customization needs.
• Budget-Conscious Businesses: Plus offers essential features at a lower price point, making it attractive for small startups or established small businesses looking to manage costs.

For these businesses, the features provided by Plus are more than sufficient to manage day-to-day operations while offering the flexibility to track detailed financial information.

Who Should Choose QuickBooks Online Advanced?

QuickBooks Online Advanced is better suited for:

• Growing Businesses: Companies in the growth phase that need a solution which can scale with increasing numbers of users (up to 25) and more complex financial data.
• Organizations Requiring Detailed Analytics: Businesses that need in-depth, customizable reports and real-time dashboards to monitor performance and make data-driven decisions.
• Enterprises with Multiple Departments: Advanced role-based permissions enable businesses to delegate responsibilities and restrict access to sensitive financial data.
• Businesses with High Transaction Volumes: Batch invoicing, batch expense uploads, and workflow automation significantly reduce manual data entry and improve efficiency in busy environments.
• Companies in Need of Dedicated Support: Access to a dedicated customer success manager and premium support ensures that any technical issues are resolved quickly and effectively.
• Firms Needing Extensive Training: The free online training resources help onboard employees, ensuring the team is fully equipped to utilize the advanced features available.

For larger companies or those that handle complex operations, Advanced offers the necessary flexibility and power often required to stay competitive and efficient.

Real-World Use Cases and Examples

Example 1: A Retail Business

Imagine a retail company that manages an inventory of products across multiple stores. The business uses QuickBooks Online Plus to track inventory levels, create purchase orders, and allocate revenue to different store locations. With Plus, the owner can easily monitor profitable product lines and adjust stock levels accordingly. However, when the business started expanding to more stores and increased their team size beyond five users, they began experiencing limitations. At that point, the need for more advanced reporting and greater user access emerged, making QuickBooks Online Advanced the better fit. The Advanced plan allowed for custom dashboards that gave real-time insights into each store's performance and more granular control over user permissions.

Example 2: A Construction Company

In the construction industry, project management and cost tracking are critical. A construction firm might initially opt for QuickBooks Online Plus due to its project profitability tracking feature, enabling the firm to monitor labor costs, materials, and job-specific expenses. However, as the company grew, managing multiple construction projects became more complex. With Advanced, the company now benefits from batch invoicing and workflow automation, which are essential when dealing with hundreds of invoices and purchase orders. The ability to generate dynamic reports helped the company pinpoint cost overruns and optimize project efficiency.

Example 3: A Wholesale Distribution Business

A wholesale distributor may start with QuickBooks Online Plus to manage the basic needs of inventory, purchase orders, and sales tracking. As the business scales and the complexity of operations increases, the distributor needs more detailed insights into financial performance across various regions. Upgrading to Advanced means more robust reporting and advanced analytics. The dedicated customer success manager available in Advanced ensures that any issues are resolved swiftly, and the business continues to run smoothly even as sales channels multiply.

Example 4: A Nonprofit Organization

Nonprofits have unique accounting requirements such as tracking donations, grants, and expenses against budgets. Some organizations begin with QuickBooks Online Plus, which provides solid financial reporting and basic project tracking capabilities. However, as their funding and operations grow, the increased reporting needs and a requirement for more controlled user access make the Advanced plan more attractive. With Advanced, nonprofits can generate custom reports that align with IRS reporting standards, track donor contributions more efficiently, and manage multiple team members working on sensitive financial information.

Tips for Making Your Decision

When choosing between QuickBooks Online Plus and QuickBooks Online Advanced, consider these points:

1. Assess Your User Needs:
   • How many users need access to your accounting system right now, and what is the projected growth?
   • If your team is likely to exceed five users or if multiple departments require distinct levels of access, Advanced is the better option.
2. Evaluate Your Reporting Requirements:
   • Do you need basic financial reporting, or are you looking for advanced, customizable analytics that integrate with tools like Fathom?
   • If detailed dashboards and KPI tracking are important for your decision-making, the additional reporting features in Advanced provide significant value.
3. Consider Workflow Complexity:
   • If your business involves batch processing, bulk data entry, and high-volume transactions, the automation tools in Advanced can save time and reduce errors.
   • Evaluate whether setting up rule-based triggers will help streamline your day-to-day operations.
4. Review Your Budget:
   • While Advanced offers more features, the higher monthly fee may not be justified for all businesses. If your current operations are well-managed with Plus, you might opt to stick with it until the need arises for more advanced tools.
   • Look at your growth projections and determine if the additional cost can be offset by the efficiency gains and enhanced reporting provided by Advanced.
5. Think About Future Needs:
   • Is your business in a phase where growth is expected? Adopting a solution that is scalable may help avoid the complications of upgrading later.
   • Consider the training and support structure. More advanced features come with the benefit of dedicated support and training resources that can ease the transition as your processes become more complex.

Implementing the Transition from Plus to Advanced

If your business currently uses QuickBooks Online Plus and grows to a point where you need the advanced features, switching to QuickBooks Online Advanced is generally seamless. Here are some tips for a smooth transition:

• Data Migration:
  Ensure that your financial data is organized and backed up before initiating the switch. Although the transition is designed to be seamless, careful record keeping reduces any potential hiccups.
• Team Training:
  Take advantage of free training resources provided with Advanced. Training sessions, webinars, and online tutorials can help your team get up to speed with new automation features, custom reporting, and workflow management tools.
• Customize User Permissions:
  Advanced provides detailed control over user roles. Spend some time mapping out who needs access to what data, then set up the role-based permissions accordingly to ensure data security and efficiency.
• Leverage Dedicated Support:
  With Advanced, you have a dedicated customer success manager at your side. Use this resource to clarify any questions about features or to troubleshoot issues as your team adapts to the new functionalities.

Conclusion

Deciding between QuickBooks Online Plus and QuickBooks Online Advanced comes down to a clear analysis of your business’s current needs, future growth expectations, and the complexity of your financial operations.

• If your small to medium-sized business requires essential features such as inventory tracking, project management, class tracking, and supports up to 5 users, QuickBooks Online Plus is an attractive and cost-effective choice.
• As your business expands, if you find yourself needing enhanced reporting capabilities with dynamic dashboards, increased automation through batch processing, more user capacity (up to 25 users), and dedicated support resources, QuickBooks Online Advanced becomes the more suitable option.

Both plans are designed to make accounting more efficient, offering you the freedom to manage your business financials from anywhere with cloud-based accessibility. Ultimately, the choice will depend on the scale and complexity of your operations, along with your future plans for growth.

By understanding the differences in features, user count, automation capabilities, and support services, you can make an informed decision that not only meets your current requirements but also supports your business as it evolves. If you are still on the fence after considering these factors, consider starting with Plus and upgrading to Advanced when your operational needs expand further. This flexibility is one of the strengths of QuickBooks Online, ensuring that your accounting software grows along with your business.

Regardless of which plan you choose, investing in a reliable accounting platform like QuickBooks Online is a step toward better financial management, improved reporting, and, ultimately, business success. Take the time to evaluate your current workflow, discuss with your team, and reach out to QuickBooks support if you need additional insights about the advanced features.

Remember, the right decision today can pave the way for smoother operations and more strategic growth tomorrow. Whether it’s Plus or Advanced, both plans are designed to help you keep your financial data secure, organized, and readily accessible—so you have more time to focus on what really matters: running and growing your business.

In summary, the discussion of “plus vs quickbooks online advanced” clearly shows that while QuickBooks Online Plus provides an excellent suite of tools for many small businesses, QuickBooks Online Advanced offers those growing companies and larger teams the enhanced capabilities they need for complex financial environments. Assess your business requirements, consider future growth, and choose the option that aligns with your strategic objectives.

We hope this detailed comparison has shed light on the key differences and helped you understand the benefits of each plan. If you have any questions or need further assistance, don’t hesitate to reach out. Your path to efficient accounting and smarter financial decisions begins with the right tools.

Happy accounting!