When it comes to choosing a payment processing and financial management solution for your business, two of the most popular names on the market are QuickBooks and Square. In today’s fast-paced business environment, small to medium enterprises are increasingly relying on a single platform to handle everything—from payment processing and point-of-sale (POS) transactions to detailed accounting and payroll. In this post, we’ll explore in depth the factors to consider when weighing QuickBooks vs Square, comparing key features such as pricing, payments, invoicing, ease of use, eCommerce integration, payroll, merchant accounts, card readers, and customer support. Whether you run a brick-and-mortar store, an online shop, or a service-based business, understanding the differences between these two platforms can help you choose the right tool to grow your business.

Introduction

Both QuickBooks and Square have earned their reputations by offering solid solutions. QuickBooks is well known as the gold standard in accounting software and has built out payment processing and invoicing capabilities to compliment their already robust financial management suite. Square, by contrast, began as a payment processor and POS solution and has since expanded its services to include inventory management, eCommerce, and even payroll solutions.

As businesses mature, they may find themselves questioning, “Which one is right for me—QuickBooks or Square?” The answer is rarely “one-size-fits-all,” as each platform offers unique strengths. In this post, we’ll walk through a variety of topics that include comparing pricing options, transaction fees, invoicing features, eCommerce integration, and more to help you determine which system best fits your business needs.

Overview of QuickBooks and Square

QuickBooks Overview

QuickBooks is best known as an accounting software designed to help small to mid-sized businesses manage their finances. With its user-friendly interface, QuickBooks offers comprehensive tools for tasks such as:

• Tracking income and expenses
• Invoicing and payment reminders
• Payroll management and tax filing
• Detailed reporting and analytics
• Inventory and project profitability tracking (available in higher-tier plans)

QuickBooks isn’t just a tool for bookkeeping—its ecosystem integrates with a host of third-party apps and even native solutions for payment processing (QuickBooks Payments), giving businesses the ability to scale their operations over time. Its strength lies in its complete financial management capability, which makes it particularly appealing for service-based businesses and companies with substantial accounting needs.

Square Overview

Square started out with a focus on payment processing and POS systems, providing an easy-to-use platform that today powers millions of small businesses worldwide. Square’s core offerings include:

• A free basic POS system for in-person, online, and mobile payments
• A range of affordable hardware options (card readers, terminals, register solutions)
• Integrated tools for invoicing, inventory tracking, and sales reporting
• An eCommerce solution through Square Online that lets you build and manage an online store
• Payroll and other add-on solutions tailored to retail, restaurants, and service appointments

Square’s ecosystem is built to allow even small retailers and restaurants to process payments quickly, manage inventory, and get paid faster—all with minimal setup fuss. The platform is particularly popular among brick-and-mortar shops and service-based businesses that want an integrated payment and POS solution.

Pricing Comparison

Pricing is one of the reason why many small business owners carefully evaluate both QuickBooks and Square. Here’s a detailed look at the pricing structures for both platforms:

QuickBooks Pricing Plans

QuickBooks offers several pricing plans designed to scale with your business:

• Simple Start: Ideal for startups or very small businesses. It offers the essentials of bookkeeping and invoicing. Prices typically start around $35/month after any introductory offers.
• Essentials: Adds more users and additional features such as bill management and multi-channel connectivity. Priced at roughly $65/month.
• Plus: In addition to Essentials, it includes inventory tracking and more detailed reporting. This plan is around $99/month.
• Advanced: Intended for larger or growing businesses that need advanced reporting, workflow automation, and additional integrations. This plan is priced around $235/month.

QuickBooks Payments is integrated into the ecosystem but comes with its own fee structure, largely determined by transaction types (swiped, online, or manually entered). For example, card-not-present transactions generally charge a fee around 2.9% plus a small fixed amount, while card-swipe transactions might be slightly lower. Moreover, QuickBooks offers additional features like invoicing with automatic reminders and recurring payment processing when you upgrade to QuickBooks Online.

Square Pricing Plans

Square adopts a simpler pricing approach, making it very appealing for businesses that want transparency:

• Free Plan: Square’s core POS system is free to use, regardless of how many transactions you process. You only pay the transaction fees.
• Plus Plan: For around $29/month, Square provides extra features tailored to specific business types such as restaurants or appointment-based services.
• Premium/Custom Plans: For more complex needs, Square will work with you to develop a custom pricing plan that may come with discounted processing rates and added functionalities.

Regarding transaction fees, here is how the two compare:

Transaction TypeQuickBooks PaymentsSquare TransactionsIn-Person SwipeApproximately 2.4% + 25¢Approximately 2.6% + 10¢Online/Not PresentApproximately 2.9% + 25/30¢Approximately 2.9% + 30¢Keyed-in/Manual EntryApproximately 3.4-3.5% + 25/30¢Approximately 3.5% + 15¢ACH/Bank TransfersAround 1% (min $1, with limits)Around 1% (min $1, with limits)

This fee structure means that for smaller transactions (e.g., a coffee shop sale), Square might have the lower fixed charge that can make each sale more profitable. Conversely, for high-ticket items, QuickBooks might edge out slightly with lower percentage rates on the transaction value. Always keep in mind that your average sale amount and business model will heavily influence which pricing structure works best for you.

Payments and Merchant Accounts

QuickBooks Payments

QuickBooks Payments offers a more traditional approach by providing your own vendor-specific merchant account. This has several benefits:

• Dedicated Merchant Account: Because you are provided with an individual merchant account, the risk of your account being frozen due to issues with other users in a shared account is minimized.
• Integrated Accounting: Since QuickBooks Payments is built into the QuickBooks ecosystem, transactions can automatically sync into your books, reducing manual work and errors.
• Advanced Features: It offers features like recurring payments, automatic reconciliation, and chargeback protection which are valuable for service-based businesses that invoice customers regularly.

Square Payments

Square’s payment processing is robust and highly optimized for quick, convenient transactions:

• Aggregated Merchant Account: In Square’s model, you share a merchant account with other businesses. This simplifies the setup process with less paperwork, though it can sometimes lead to stricter transaction monitoring.
• Versatile Payment Types: Square supports in-person, online, and mobile payments seamlessly. Whether you accept cards, digital wallets (Apple Pay, Google Pay), or even Venmo, Square’s solution keeps your cash flow flowing.
• Hardware Compatibility: Square is famous for its affordable and easy-to-use card readers and terminals. A free magstripe reader is available when you sign up, and additional hardware such as chip and contactless readers or integrated terminals are available at competitive prices.
• Instant Deposits: With Square, you can have funds deposited instantly (typically incurring a small percentage fee) or wait for the next business day with no extra fee.

Invoicing and Cash Flow Management

QuickBooks Invoicing

Invoicing is an area where QuickBooks stands out thanks to the following features:

• Customization: QuickBooks allows you to create professional, branded invoices. You can customize logos, colors, and even adjust labels to better reflect your business’s identity.
• Automation: It supports recurring invoices and automatic reminders. This is especially useful if your business works with regular clients or subscription-based services.
• Integration with Accounting: Since every invoice is automatically integrated into your accounting software, reconciling sales with deposits is seamless, reducing the risk of errors.

Square Invoicing

Square’s invoicing features are simpler but effective for many small businesses:

• Ease of Use: Square Invoices can be sent quickly via email or SMS. There is no steep learning curve—just create an invoice and send it out.
• Mobile Flexibility: Because it is integrated with the Square POS system, you can generate and manage invoices on the go using a smartphone or tablet.
• Limited Customization: While Square does allow basic customization, its features are not as robust as QuickBooks’s advanced, automated invoicing options.

For businesses that rely heavily on contracts and recurring billing, QuickBooks tends to be the superior option. On the other hand, if you’re a small business owner who mostly deals with one-off transactions and values simplicity, Square might be more than enough.

eCommerce Integration and POS Functionality

Square’s Strength in POS and eCommerce

Square has a proven track record in the POS space and has expanded its capabilities to support online sales.

• Point-of-Sale Capabilities: Square is renowned for its highly intuitive POS system. Whether you operate in a physical store, from a mobile location, or even over the phone, Square’s solution ensures that transactions are processed swiftly.
• eCommerce via Square Online: With Square Online, you can easily set up an online store. This integration is seamless with Square Payments, allowing you to manage both in-person and online sales from one central dashboard.
• Inventory Management: Square provides basic inventory tracking features that alert you when stock levels are low. This is particularly useful for retailers who need to manage a small inventory.
• Specialized Hardware: Square offers an array of hardware solutions, from free card readers to advanced POS terminals and registers. These devices are designed for ease of use and integrate tightly with the Square software ecosystem.

QuickBooks eCommerce Considerations

QuickBooks itself does not offer a native eCommerce platform. That said:

• Third-Party Integrations: QuickBooks can sync data from online sales channels through integrations with platforms like Shopify, WooCommerce, and BigCommerce. However, these integrations are primarily for accounting purposes—to import sales data into your QuickBooks ledger.
• Inventory and Bookkeeping: While QuickBooks can track inventory and manage sales data, it does not replace a dedicated eCommerce solution. This means you might have to use a third-party tool for your online store and then integrate that data back into QuickBooks.

For businesses looking for a unified cash register that handles both in-store and online orders out of the box, Square is often the more attractive option. If your primary focus is detailed accounting and you’re willing to integrate with separate eCommerce solutions, QuickBooks can provide a more comprehensive bookkeeping solution.

Payroll and HR Capabilities

QuickBooks Payroll

QuickBooks offers a full-fledged payroll service that closely integrates with its accounting software:

• Advanced Payroll Features: QuickBooks Payroll allows you to pay employees and contractors, file taxes, and generate year-end reports (W-2s and 1099s). It also includes options for direct deposit and even same-day or next-day payments in higher-tier plans.
• HR Support: QuickBooks Payroll provides more robust HR support. Depending on your plan, you may have access to HR advisory services, which help with employee onboarding, benefits management, and even compliance reporting.
• Integration with Accounting: Payroll information is automatically fed into your QuickBooks ledger, reducing manual data entry and helping maintain accurate books.

Square Payroll

Square also offers payroll services, but with a focus on simplicity:

• Targeted at Small Businesses: Square Payroll is an excellent choice for smaller companies or those with straightforward payroll needs. It is particularly popular among businesses that already use Square’s POS system.
• Basic Features: While Square Payroll can handle both employee and contractor payments, its feature set is generally less robust than QuickBooks Payroll. Options such as local tax filing or extensive HR support may be more limited or offered only at higher price tiers.
• Cost-Effective for Contractors: If you mainly pay independent contractors rather than full-time employees, Square Payroll can be quite competitive in terms of cost.

Choosing between the two depends largely on your business size and complexity. If you require advanced payroll tax management and robust HR features, QuickBooks Payroll is likely the right choice. For simpler payroll needs and a small team, Square Payroll provides a streamlined and attractive alternative.

Merchant Account Differences and Stability

A key consideration when comparing QuickBooks vs Square is the type of merchant account you receive.

• QuickBooks Payments comes with a dedicated merchant account. This means that your business has its own account for processing transactions, which tends to offer greater stability and lowers the chance of unexpected account holds.
• Square’s Aggregated Account is a shared merchant account with other businesses hosted by Square. The setup is simple and fast since there is less paperwork involved, but the shared nature sometimes might lead to stricter transaction review processes.

For businesses that process high volumes or larger transactions, a dedicated merchant account can provide smoother operations and lower risk. However, for many small businesses, the streamlined nature and ease of setup with Square’s system provide significant advantages.

Integration and Seamless Synchronization

Both platforms have worked hard to integrate with other software applications that are essential for modern business management. A popular point of integration is the ability to sync sales data with accounting software.

QuickBooks and Integration Tools

QuickBooks has long offered a native and well-developed app ecosystem. It seamlessly integrates with Square through tools like “Sync with Square,” which automatically imports transactions, sales details, fees, and deposits. This automatic import reduces the need for manual data entry, making reconciliation easier for bookkeepers and accountants. Other third-party integrations are also available for advanced needs, such as inventory management and eCommerce, ensuring that your financial data is in sync across systems.

Square Integration Options

Square not only offers its native POS but also supports third-party integrations that bring its sales data into platforms like QuickBooks. In some cases, merchants have the option to use third-party services to streamline data feeds between Square and QuickBooks. While the integrations continue to improve, there may sometimes be minor issues like mismatched dates on transactions—though many businesses report that these can be manually adjusted and resolved.

By setting up proper integration, you can achieve near real-time synchronization of Square transactions with QuickBooks—helping you maintain accurate financial reports and cash flow statements.

Card Readers and Hardware Options

Both QuickBooks and Square offer hardware solutions that work in tandem with their software:

• Square Hardware:
  • Free magstripe reader included upon signup.
  • Chip and contactless readers available for about $49.
  • Additional hardware setups like the Square Terminal or Square Register are available for larger retailers needing a full countertop POS system.
• QuickBooks Hardware:
  • QuickBooks offers a mobile card reader (often available at a similar price point, around $49) that connects via Bluetooth.
  • For businesses that require more robust point-of-sale functionality, third-party hardware integrations may be needed, especially if you are linking with QuickBooks’ POS on a desktop or tablet.

Both systems accept EMV chip cards, debit, credit cards, and mobile wallet options (Google Pay, Apple Pay). The choice here usually comes down to the overall ecosystem—if you are already using QuickBooks for accounting, you might lean toward their hardware to keep the data tightly integrated; whereas businesses that require fast, reliable POS performance may prefer Square’s broad range of hardware options.

Customer Support and Ease of Use

QuickBooks Support

QuickBooks tends to focus on offering extensive help documents and community forums. While users have access to chat support and some phone support, many customers feel that QuickBooks' sheer number of features creates a steeper learning curve. Support is generally available, but for certain POS-specific queries, the phone support for QuickBooks POS (if you still use it) may come with additional fees.

Square Support

Square is frequently praised for its ease of use and accessible customer support. Support options include:

• Free customer help via phone, chat, email, and social media
• Extended business hours for merchants on free plans
• 24/7 support available for those on paid plans

Square’s interface is often described as intuitive and streamlined, making it especially appealing for small business owners who prefer simplicity over a steep learning curve.

Summary and Which One is Right for You

When comparing QuickBooks vs Square, it’s clear that both solutions offer tremendous value to small businesses—but they serve slightly different needs:

• Choose QuickBooks if:
  • You are a service-based business that requires robust accounting and bookkeeping features.
  • You need advanced invoicing capabilities with automated reminders, recurring bills, and detailed financial reporting.
  • You have more complex payroll and HR needs.
  • You are already invested in the QuickBooks ecosystem and need deep integration between your payment processing and accounting.
• Choose Square if:
  • You operate a retail, restaurant, or mobile business that benefits from a best-in-class POS system.
  • You want an all-in-one payment processing system that is easy to use, with quick deployment for in-person and online sales.
  • You value cost transparency with a free core plan and simple, competitive transaction fees.
  • You require integrated eCommerce and inventory management features directly built into your payment processor.

Both platforms have their pros and cons, and the best choice ultimately depends on your business model, transaction volume, and growth projections. Some businesses may even choose to use both solutions in tandem—accepting payments through Square for in-person sales while tracking finances meticulously through QuickBooks to leverage its powerful accounting features.

FAQs

1. Do I need both QuickBooks and Square or can I choose one?

It depends on your business needs. If you need comprehensive accounting alongside payment processing, QuickBooks may provide a better ecosystem. For small businesses focused on seamless in-person transactions and an easy-to-use POS system, Square alone might suffice.

2. Is Square’s free plan enough to manage my business?

Square’s free plan is robust for many small businesses—it offers a POS system, basic invoicing, and inventory tracking without a monthly fee. However, if you need advanced features like detailed reporting or industry-specific functionality, consider Square’s Plus or Premium plans.

3. How does the transaction fee structure affect my business?

If your average transaction amount is low, the lower fixed fee in Square’s pricing may save you money on each sale. For larger-ticket items, QuickBooks’ slightly lower percentage rate on swiped transactions might be more cost-effective. Evaluate your average sale and monthly volume to decide which fee structure benefits you the most.

4. Can I integrate Square with QuickBooks?

Yes, integrations like “Sync with Square” are available. This tool automatically imports your Square transactions into QuickBooks, helping keep your accounting records up-to-date. However, be aware that some minor discrepancies (such as invoice date mismatches) may need manual adjustments.

5. What if my business grows—can these platforms scale with me?

Both QuickBooks and Square offer scalable solutions. QuickBooks scales through its various subscription plans, while Square provides additional hardware options and custom pricing plans for larger operations. When your business grows, you may evaluate upgrading or even combining the strengths of both systems.

Final Thoughts

Choosing between QuickBooks and Square is a strategic decision that can profoundly impact your business operations. QuickBooks excels as a comprehensive accounting solution with advanced invoicing, payroll, and financial management capabilities. It’s best suited for companies that have intricate accounting needs and wish to integrate every aspect of their financial management.

Square, on the other hand, shines as a powerful, user-friendly payment processing and POS system with an intuitive interface and flexible hardware options. It offers built-in features for retail, restaurants, and mobile businesses, making it an excellent choice for merchants who need efficient payment acceptance along with basic inventory and eCommerce functionalities.

In today’s competitive market, many business owners find value in leveraging both platforms together. By using Square for quick, reliable payment processing in your store and QuickBooks for deeper financial reporting and bookkeeping, you can capture the best of both worlds.

Ultimately, your decision should be based on your specific business operations, growth plans, and the unique mix of features that best supports your day-to-day needs. Whether you choose QuickBooks, Square, or integrate both, investing in the right technology will save you time, streamline your processes, and help boost your bottom line.

We hope this comprehensive comparison of quickbooks vs square has provided valuable insights to help you make an informed decision for your business. As you move forward, consider what features are most important for your daily operations and long-term goals. Remember, the best software is the one that grows with you and simplifies the complexities of managing a business.

Happy processing and bookkeeping!