Paying that monthly subscription for QuickBooks got you thinking: is this really worth it?
In today’s business world, one has to be aware of the many tax regulations and compliance to stay in business long-term.
Having worked with the software since it's early days as QuickBooks Accountants in Alberta, we've seen the prices climb steadily over the years.
QuickBooks is one of the biggest and most trusted name in accounting software, offering a suite of tools to streamline financial processes under many different versions of the software.
However, as we move forward, it seems the software has almost monopolized the accounting industry and prices have been steadily moving upward. It seems sensible for anyone to question the affordability of platforms like QuickBooks.
In this article, let’s have an honest look into the cost considerations surrounding QuickBooks and explore whether its pricing is becoming too steep for the everyday small business in Canada.
The History of QuickBooks Pricing
QuickBooks has undergone significant changes since it first started, with pricing structures adapting to accommodate changing market demands and technological advancements.
Intuit QuickBooks was initially targeted towards small businesses only as a desktop accounting software. The early versions were similar to a preformulated Microsoft Excel template that anyone could enter accounting data into.
Since then, QuickBooks has expanded its offerings to cater to enterprises and accounting professionals with more complex needs, and user access options.
How QuickBooks is Changing Pricing Plans
QuickBooks currently offers several pricing plans for different user segments, and they are still largely geared toward small businesses to medium sized businesses.
QuickBooks used to sell software. When you bought QuickBooks, you had it for the rest of your life and only needed to buy a more recent version if you needed to use payroll services.
Enter QuickBooks Online, where small businesses now paid monthly instead of paying once for the whole software package. Now QuickBooks data is completely in the hands of Intuit servers and the business owner needs to pay regularly to access it.
Though it may be great for sharing your files with accountants, many of them will tell you they do not like using QuickBooks Online for data entry since the online system is much slower than the desktop version, and some of the more sophisticated features like batch entries are not available.
As of 2019, QuickBooks only sells subscriptions, even for the desktop software. These plans vary in features, functionality, and pricing, allowing users to choose the option that best aligns with their business requirements and budget constraints.
Rising Costs: Factors to Consider
While QuickBooks remains a popular choice for many businesses, some users have expressed concerns about rising costs. Several factors contribute to this perception:
1. Feature Expansion
As QuickBooks continues to innovate, new features and functionalities are added to the platform. While these additions enhance user experience and offer greater value, they may also come with a higher price tag, particularly for users who do not require all the added features.
2. Subscription Model
QuickBooks now operates on a subscription-based model, requiring users to pay recurring fees for access to the software. While this model offers flexibility and regular updates, it can lead to cumulative costs over time, especially for long-term users.
3. Tiered Pricing
QuickBooks offers multiple pricing tiers, each with its own set of features and corresponding price points. While this tiered approach allows users to select a plan that matches their needs, it can also result in higher costs for users who require advanced features not included in lower-tier plans.
Evaluating Alternatives
As the cost of QuickBooks rises, some users may explore alternative accounting software options to manage their finances more affordably. Several competitors offer comparable features at lower price points, providing viable alternatives for budget-conscious users.
As bookkeepers, we are still very much married to QuickBooks, but here are some alternatives that are on the market:
Wave Financial is a free accounting software that offers a comprehensive suite of tools for small businesses and freelancers. With features including invoicing, expense tracking, and financial reporting, Wave provides a user-friendly platform for managing finances without the burden of subscription fees.
2. FreshBooks
FreshBooks is another affordable option for small businesses and self-employed professionals. With plans starting at a modest monthly fee, FreshBooks offers features such as invoicing, time tracking, and expense management. Its intuitive interface and mobile app make it a convenient choice for those on the go.
3. Zoho Books
Zoho Books is a cloud-based accounting software that offers competitive pricing and robust features for small businesses. With plans starting at a fraction of the cost of QuickBooks, Zoho Books provides tools for invoicing, expense tracking, and inventory management, along with integrations with other Zoho applications.
4. Xero
Xero is a popular alternative to QuickBooks that offers affordable pricing plans tailored to businesses of all sizes. With features such as bank reconciliation, payroll, and project tracking, Xero provides comprehensive financial management solutions at competitive price points.
5. Sage Business Cloud Accounting
Sage Business Cloud Accounting offers scalable pricing plans designed to accommodate the needs of small businesses and growing enterprises. With features including invoicing, bank reconciliation, and financial reporting, Sage Business Cloud Accounting provides a cost-effective solution for businesses seeking advanced accounting capabilities.
Conclusion
While QuickBooks remains a leading accounting software solution, its pricing structure may pose challenges for some users, particularly as costs continue to rise. Understanding the factors influencing pricing and evaluating alternative options can help businesses make informed decisions about their accounting software needs.
In conclusion, while QuickBooks offers a comprehensive suite of tools for financial management, users should carefully consider the associated costs and explore alternative solutions to ensure they are getting the best value for their money in today's competitive market.
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