The information in this article is based on our research, interviews with customers, professional bookkeepers, and certified public accountants, as well as dozens of hours hand-testing each platform. The details of our review process can be found in this description of our research methodology.
QuickBooks Online is the top accounting software for small businesses. With more than 70 financial and accounting reports, add-on features like payroll and accounting services, and a large network of accounting and bookkeeping professionals, this platform is the undeniable leader in the accounting space. However, it still exists in a competitive market, with a handful of other popular systems that may be better for your business.
There are five accounting tools we believe are worth consideration before you purchase QuickBooks Online, which is one of the most expensive platforms. They differentiate based on the intended customer segment. For example, QuickBooks Online is not very user-friendly, so freelancers and smaller businesses will have an easier time getting a handle on tools like Wave or FreshBooks.
Here’s a breakdown of our review criteria and how QuickBooks Online competitors performed in each category.
|Software Company||Analyst Rating||Features||Usability||Pricing||Customer Support|
|Sage Business Cloud||83||7.5||9||9||8.5|
In this article, we’ll describe QuickBooks Online, outline its features and pricing, and compare these factors against popular competitors. If you’d like a full description of QuickBooks Online, you can read our in-depth QuickBooks Online review.
Table of Contents
- QuickBooks Online Features
- QuickBooks Online Competitor Overview: Features
- QuickBooks Online Competitor Overview: Pricing
- Top QuickBooks Online Competitors
- Bottom Line
QuickBooks Online Features
QuickBooks Online has not only the most features across accounting software tools, but also the most detailed features. Though some additional features come at an additional cost, like the payroll, that the features are in-house and interconnected is very helpful.
|QuickBooks Online Feature||Description|
|Invoicing||Invoicing is one of the easiest things to do with QuickBooks Online. It’s notable that this is quite simple, as the rest of the platform is not particularly user-friendly.|
|Inventory Management||The Plus and Advanced plans include inventory management, which syncs seamlessly with Amazon, Etsy, and Shopify. If you’re an ecommerce business, this feature is indispensable.|
|Payroll Service||Starting at $45 per month, QuickBooks Online’s full-service payroll automates your taxes and forms, facilitates 401(k) plans, and lets you administer next-day direct deposits to your employees.|
|Time Tracking||The time tracking feature costs an additional $20 per month, but it’s key for running real-time reports, tracking time off and accruals, calculating time off, and more.|
|Accounting Reports||QuickBooks Online offers the most built-in accounting reports across the software tools in this article, with more than 70 reports. Beyond that, there’s also a section where you and your accountant can create customized reports, just in case there’s something else that you need.|
|Multiple Users||Multiple authorized users can access and utilize the software at the same time. This facilitates live coworking with your bookkeeper or accountant and will ultimately save time.|
QuickBooks Online Competitor Overview: Features
The chart below provides a quick visualisation of each platform’s features. It’s important to know the features that you’ll absolutely need, because no matter how streamlined or advanced your platform is, it won’t work unless it has exactly what you need. Pay close attention to whether or not the platform has inventory management features and if it has accounting and bookkeeping services.
QuickBooks Online Competitor Overview: Pricing
QuickBooks Online is one of the more expensive accounting tools on the market. QuickBooks Online pricing begins at $25 per month for one user and basic features. Their most popular plan is the $70 per month plan, which includes five users, and payroll pricing begins at $45 per month. The table below will give you an idea of how these solutions are priced on a plan-by-plan basis.
|Sage Business Cloud|
Top QuickBooks Online Competitors
As we mentioned, QuickBooks Online has no true equal in terms of what it offers for small businesses. However, as robust as the platform is, it is certainly not for everyone. Freelancers will likely prefer to pay less for a software while also having an easier time using their accounting tools.
We’ve listed the top competitors and alternatives to QuickBooks Online based on their similarities to the tool, taking features, pricing, and usability into consideration.
The top QuickBooks Online competitors are:
- Zoho Books
- Sage Business Cloud
1: Zoho Books
Zoho Books is an advanced accounting software that’s most similar to QuickBooks Online in terms of features, power, and the reporting capabilities. As you can see in the features chart, Zoho Books has everything that QuickBooks Online does except for accounting and bookkeeping services. Zoho Books is also particularly helpful because it’s one of many software products by Zoho, which has more than 30 software tools you can seamlessly integrate with Zoho Books.
For a direct comparison between the two, check out our QuickBooks Online vs. Zoho Books article.
- You want bookkeeping and accounting services
- You want a tool that’s a little more user-friendly and intuitive to navigate
- You want a trial run of the software for 30 days
- You conduct business with customers in many different currencies
- You’d like access to 16 invoicing templates
- You want to process payments via nine payment gateways
Zoho Books is an accounting software designed for small and medium businesses. Its standout features are its invoicing templates and vast number of financial reports. We recommend Zoho Books for those who need inventory management features.
Xero received the second-highest rating in our accounting category, second only to QuickBooks Online. It’s much easier to use than QuickBooks Online, has more than 800 pre-built integrations with third-party software tools, and is significantly cheaper. However, Xero is slightly less powerful than QuickBooks Online, and it’s not quite as popular among accountants and bookkeepers. Choose Xero if you’d like a software that’s very powerful for a moderate price.
To read a more in-depth comparison, check out our QuickBooks Online vs. Xero article.
- You can afford to pay a bit more each month
- You want to track time for your projects
- You want a built-in payroll feature
- You want a software tool that’s easy to onboard with and use
- You’re interested in one of 800 integrations with the Xero Marketplace
- You don’t need to sign up for bookkeeping services
Xero is an accounting software that's used by more than 2 million customers worldwide. It includes all essential accounting features like reporting, invoicing, inventory management, and tax form generation. It's a great option for most small and medium businesses in any industry.
Wave is the best entry-level accounting software for small businesses and freelancers. Millions of customers use the freemium tool for the best value. Wave and QuickBooks Online are ideal for very different customers. If you’re a freelancer or very small business that would like to start in just a few hours with a modern accounting software, pick Wave. If you’re a more established business that’s product-based, you should pick QuickBooks Online for something that’s much more nuanced.
For a full-length one-to-one comparison between the two, check out our QuickBooks Online vs. Wave article.
- Your business sells products or services, or both
- You want access to more than 70 financial reports
- You’re interested in a software tool that’s overall more advanced
- You’re a freelancer and need to start invoicing in just minutes
- You don’t need advanced reports
- You’re interested in adding paid features onto a freemium option
Wave is an accounting tool for invoicing, expense tracking, and payroll functionality. Wave is the best freemium tool on the market, and we recommend it for those who want accounting features for free.
FreshBooks, like Wave, is very different from QuickBooks Online in that it’s best for freelancers and very small service-based businesses. It does not include in-house payroll, services, or inventory management. However, FreshBooks is an amazingly user-friendly, budget-friendly choice.
- You have advanced accounting and financial requirements
- You’d like 70 reports in comparison with 20 in FreshBooks
- You need to track and manage inventory
- You have a service-based company
- You’re in the market for something that won’t break the bank
- You have a small client base
FreshBooks is the most user-friendly accounting software for beginners and freelancers. With features like invoicing, receipt capture, and expense tracking, it's a great first accounting tool to use when you're starting your business.
5: Sage Business Cloud
Sage Business Cloud is a cost-effective accounting software solution. At just $10 or $25 per month, this is a tool businesses should choose if their ultimate goal is unlimited features capped at $25. Sage Business Cloud’s best feature is the reporting section, which nearly rivals QuickBooks Online’s. This article provides a full comparison of QuickBooks Online and Sage Business Cloud.
- You want a built-in receipt capture feature
- You’re interested in time tracking or services
- You want a more progressive software that enables you to do more
- You want advanced and varied reporting options with Sage Intelligence
- You’d like to have unlimited users for $25 per month
- You’ll need to facilitate foreign currency transactions
Sage Business Cloud is a mid-tier accounting software designed for small businesses. Its main features include invoicing, expense tracking, and accounting reports. Overall, Sage Business Cloud is a very user-friendly tool, but is not as nuanced or cost-effective as other accounting software products.
QuickBooks Online is an advanced accounting software that provides its customers with the ultimate precision and functionality. While customers have reported that the platform is not intuitive to use, QuickBooks Online can’t be beat when it comes to its features and level of detail. If a difficult tool doesn’t intimidate you, QuickBooks Online is the best choice for most small businesses.
Here’s a quick recap of who we recommend each accounting software for: