Should I use QuickBooks Online Simple Start, Essentials, Plus, or Advanced?
The biggest factor isn’t features. It’s how many people need access and what level of detail you need in your reporting. Here’s how each plan breaks down in practical terms.
Simple Start gives you one user, basic invoicing, expense tracking, and standard reports. It does not include accounts payable (bill management) or time tracking. If you’re a solo operator who handles everything yourself, doesn’t pay bills through QuickBooks, and doesn’t need anyone else logging in, Simple Start can work. But it’s limited. If you work with a bookkeeper, you’ve already outgrown it because there’s only one user seat.
Essentials adds two more users (three total), bill pay for managing accounts payable, and time tracking. This is where most service businesses should start. If you have a bookkeeper, an office manager, or anyone besides yourself who needs access, Essentials is the minimum. The bill pay feature alone is worth the upgrade if you’re juggling vendor payments and want to track what’s owed versus what’s been paid.
Plus is the right choice if you need inventory tracking, project-level profitability, or class and location tracking. Restaurants, retail shops, and contractors tend to need Plus. Inventory tracking keeps your cost of goods sold accurate. Project tracking lets you see profit and loss by job, which matters if you’re a contractor or run project-based work. Class tracking lets you separate revenue streams or departments within one company file. You also get five users instead of three.
Advanced is built for larger operations. It supports 25 users, custom user roles, workflow automations, batch invoicing, and advanced reporting tools. Most small businesses don’t need this. If you have a sizable team, multiple departments, and complex reporting needs, it might make sense. Otherwise you’re paying for features that sit unused.
A few things to keep in mind when deciding. If you’re hiring a Beaver Dam accounting services provider or any outside bookkeeper, you need at least two user seats, which means Essentials at minimum. If you think you might need inventory or job tracking in six months, starting on Plus now saves you the hassle of migrating settings later. And upgrading is always easier than downgrading because moving to a lower plan can mean losing access to data tied to features you no longer have.
The plan matters less than how it gets configured. A Plus subscription with a messy chart of accounts and no project tracking set up is no better than Simple Start. If you want help getting your QuickBooks file built the right way from the start, QuickBooks Online setup and training ensures the plan you pick actually works the way your business needs it to.
Wisconsin's Small Business Bookkeeper
The Next Step:
A Quick Conversation
Tell us about your business. We'll talk through what you need, answer your questions, and give you a clear quote.
More Questions
What bookkeeping do I need for bonding and insurance in a cleaning business?
Bond and insurance premiums should be recorded as prepaid expenses and spread across each month of coverage. You also need to track certificates of insurance by client so you know what's expiring and when.
Read answerWhat's the difference between direct costs and overhead for a roofing company?
Direct costs are expenses tied to a specific job like shingles, crew labor, dump fees, and subcontractors. Overhead covers what you pay whether you have jobs on the schedule or not, like office rent, insurance, and admin wages. Accurate classification is what makes job costing and pricing reliable.
Read answerHow do architects track billable hours vs project costs?
Most architecture firms use phase-based billing that maps to standard project phases. Tracking hours against each phase and comparing them to the agreed fee is what reveals whether a project is actually profitable.
Read answerWhat's the difference between gross margin and markup for a retail store?
Both measure the gap between cost and selling price, but they use different denominators. Markup is based on cost while margin is based on selling price. Confusing the two leads to underpricing.
Read answerHow should a Wisconsin gift shop handle sales tax on shipping?
Wisconsin requires sales tax on shipping charges whenever the product being shipped is taxable. Since most gift shop merchandise is taxable, most of your shipping charges will be too.
Read answerHow should a marketing agency handle retainer vs project revenue?
Retainer payments are deferred revenue until you deliver the work each month. Project revenue is recognized as deliverables are completed. Use separate income accounts for each so you can see your real revenue mix.
Read answer