Benefits of Using QuickBooks Online Plus vs Essentials: Which Is Right for Your Business?
When it comes to choosing the right version of QuickBooks Online (QBO), many small business owners face a common dilemma: QBO Essentials vs QBO Plus. Both offer powerful tools for managing finances, but they serve slightly different needs depending on the size, structure, and complexity of your business.
In this blog, we’ll explore the key features, advantages, and use cases of QuickBooks Online Plus compared to Essentials, answer common questions, and help you make the right choice. We’ll also share how Brecken Business Solutions can help tailor your QBO setup to your unique goals.
What Is QuickBooks Online Essentials?
QBO Essentials is the mid-tier version of QuickBooks Online, offering more features than Simple Start but fewer than Plus. It includes core accounting features like:
Managing bills and vendors
Tracking income and expenses
Creating and sending invoices
Time tracking
Running basic reports
Multiple users (up to 3)
Essentials is ideal for service-based businesses that don’t need inventory tracking or complex job costing.
What Is QuickBooks Online Plus?
QBO Plus includes everything in Essentials and adds more advanced features that benefit growing or more complex businesses. Key additions include:
Inventory tracking
Project and job costing
Budgeting
Class and location tracking
Customizable reports
Up to 5 users
This version is great for businesses that manage multiple projects, sell physical products, or need deeper financial insights.
QuickBooks Online Essentials vs Plus – Key Feature Comparison
1. Invoicing & Expense Tracking
✔️ Available in Essentials
✔️ Available in Plus
2. Bill Management
✔️ Available in Essentials
✔️ Available in Plus
3. Time Tracking
✔️ Available in Essentials
✔️ Available in Plus
4. Inventory Tracking
❌ Not available in Essentials
✔️ Available in Plus
5. Project & Job Costing
❌ Not available in Essentials
✔️ Available in Plus
6. Budgeting Tools
❌ Not available in Essentials
✔️ Available in Plus
7. Class & Location Tracking
❌ Not available in Essentials
✔️ Available in Plus
8. Number of Users
Essentials: Up to 3 users
Plus: Up to 5 users
Summary:
Essentials is great for service-based businesses that only need basic features like invoicing, time tracking, and bill management.
Plus is ideal for businesses that track inventory, manage multiple projects, or need budgeting and advanced reporting.
Benefits of Upgrading to QBO Plus
1. Project Tracking and Profitability Insights
With the Projects feature, QBO Plus users can track income, expenses, and labor costs by job or client. This is invaluable for understanding which jobs are profitable and which aren’t.
2. Inventory Management
Sell physical products? QBO Plus helps you track quantities, get reorder alerts, and see product-level profitability.
3. Class and Location Tracking
Segment your business by department, location, or type of service to see where your revenue is really coming from.
4. Custom Budgeting and Forecasting
Use budgeting tools to compare actuals vs forecasts and plan for growth.
5. Better Team Access
With room for up to 5 users (vs 3 in Essentials), it’s easier to share financial responsibilities across departments or team members.
Who Should Use QBO Essentials?
Service-based businesses without inventory
Freelancers or solopreneurs
Startups focused on basic accounting needs
Teams that only require simple time tracking and invoicing
Who Should Use QBO Plus?
Businesses that sell products or track inventory
Project-based businesses like construction, marketing, or consulting
Nonprofits or organizations with multiple departments
Companies with multiple locations or revenue streams
Growing teams needing broader user access
Q&A: Choosing Between QBO Plus and Essentials
Q: Is QBO Plus worth the extra cost?
A: If your business tracks inventory, manages projects, or needs budgeting tools, then yes— QBO Plus delivers better value long-term.
Q: Can I upgrade from Essentials to Plus later?
A: Yes, you can upgrade anytime without losing your data. QuickBooks will retain all your historical transactions.
Q: Do both versions integrate with QuickBooks Payroll and QuickBooks Time?
A: Yes. Both Essentials and Plus integrate with payroll and time-tracking tools.
Q: Can I use QuickBooks Online for multiple businesses?
A: Each business needs its own subscription, regardless of the QBO version.
Q: Does Plus include advanced reporting?
A: Yes, Plus provides more customizable and detailed reports, ideal for analyzing trends and performance across categories.
How Brecken Business Solutions Can Help
At Brecken Business Solutions, we specialize in helping small businesses choose and configure the right QuickBooks setup.
We can:
Evaluate which version suits your needs
Help migrate and upgrade your QBO account
Train your team on features like Projects and Budgeting
Provide ongoing support, cleanup, and bookkeeping
Let us make QuickBooks work for your business not the other way around.
Call to Action
Contact us today to find the best QBO plan for your business and ensure you're set up for success!
