Is QuickBooks Online right for your business?

Is QuickBooks Online right for your business? QuickBooks online is a relatively new product in the QuickBooks line up.  This article will inform you of QuickBooks Online cost, setup and discuss the benefits of online banking, data backup and payroll.  Also, comparisons will be made to the desktop version of the software.  This will guide you to make an informed decision whether QuickBooks Online accounting is right for your business.    Recently, I had a situation where a client needed more than a virtual bookkeeper.  His corporation is located in Florida. He resides in Florida part of the year, and Michigan the remainder of the year.  His office workers in Florida needed QuickBooks access to enter deposits and other financial information.  I needed access to enter data and prepare the financial statements from my office in Michigan.   The owner wanted access available to him wherever he was working around the United States.  We started out using remote access.  Unfortunately, two people cannot work on the remote computer at the same time.  This became a major time issue, so we decided to try QuickBooks Online Plus.  This allowed us to have four people at separate locations working online.   This solved our dilemma and allowed the owner to review his corporate account information anywhere he had internet access. There are three levels of online accounting available for your business.  QuickBooks Online Free has no cost, but it has very limited features. This is mainly used by small businesses that are just starting out.  QuickBooks Online Basic is $9.95/per month and offers a few more benefits than Online Free.  For example, one user can have access with Online Free, but with Online Basic one user and your accountant is allowed.  QuickBooks Online Plus is $34.95/per month and offers many more features than the others.   For a side-by-side comparison of the products, copy and paste http://search.quickbooksonline.com/finance-accounting-solutions/.  QuickBooks ProAdvisors can get a 40% discount for their clients who purchase Online Plus.  Keep in mind that QuickBooks Online will not work for your company if you need inventory or purchase order availability. With QuickBooks Online Free, there is no software to install.  After the purchase, QuickBooks starts with a setup interview. After the interview, the software will give the option to import your company’s desktop data (only available with Online Plus).  A one-time conversion is available with QuickBooks Basic, Pro or Premier Editions. Quicken software cannot be converted to the Online version.  If your company needs to import data from another accounting system, contact customer service and they will try to help with the conversion.  If importing from QuickBooks desktop products, plan on spending extra time entering payroll data or re-creating templates. QuickBooks online screens navigate differently than the desktop products to allow several people to work at the same time.    A beneficial feature with Online Plus is online banking.  The online banking feature can save a lot of time for the accountant.  The authorized account users have to setup Online Banking through their financial institution.  Every night daily transactions are downloaded into the accounts or the transactions can be matched manually. This allows the accountant to access the transaction information immediately even if the company chooses to not to allow the accountant access to the banking account.  Another benefit is the users who are authorized can view bank information from their Blackberry or iPhone.   At this time, Online Bill Pay isn’t available.  This should be a consideration if your company is currently using this feature with the desktop version of QuickBooks.   Another benefit is the security and safety with Online.  Company data is secured with the same technology that the most prestigious banks use with VeriSign Secured and Truste Certified Privacy.  Unlike the desktop version, your company’s information is saved online which is a great benefit because your data is always protected.  There will be no worries about hard disk failure and losing hours of data entry.  There are two copies of your data information maintained at all times and QuickBooks automatically backs up daily.  Just keep in mind the can never be restored from an earlier point in time because the records are always updated.  QuickBooks gives the option to back up the data on your hard drive for added comfort.   The only time the users won’t have access to your company files is when the internet is not working.  Payroll is a great feature and available with Online Plus.  The regular price for payroll costs $19.95/per month.  Promotional discounts are usually available.  It works the same way the desktop version does but your company will receive emails notifying when payroll, payroll taxes and any other payments are due to be scheduled or paid.  Federal and State payroll tax reports are included.  When converting from desktop, the employee contact information is the only item imported.  Setup of payroll items, employee deductions and year-to-date information will need to be entered before payroll can be performed.   Direct deposit is available with Online plus payroll.Overall, the main reasons for choosing QuickBooks Online are multiple users working from any location anytime of the day and that the CEO or owner(s) have access to the financial statements with the ability to review the detail of those statements immediately.   These features are especially important considering we live in a fast paced environment.   Since this is a fairly new product, there are some things to be improved upon, such as the lack of options with report layouts and the limitation for businesses with inventory products.  As I’ve seen many times in the past, QuickBooks keeps improving their products to remain the leader in small business accounting software. Raeann SalterAdvanced Certified QuickBooks Consultant