You know you need a QuickBooks account, but with so many different plans—QuickBooks Online, QuickBooks Desktop, QuickBooks Self-Employed, and even options within QuickBooks Online—how do you choose the right one for your solopreneur business?
Caroline, a freelance graphic designer, knew her books were a mess. When it came to tracking her income, expenses, and taxes, she knew her DIY spreadsheets weren’t quite cutting it. She realized she needed accounting software but felt overwhelmed by the choices. Should she go with QuickBooks Self-Employed, Simple Start or something else entirely?
After a consultation, I helped Caroline identify her needs and recommended QuickBooks Online Simple Start as the best fit for her. Within weeks, she had transitioned to a streamlined system that worked perfectly for her growing business. Like Caroline, you don’t have to face this decision alone – I’m here to help you find the right plan for your business too.
Hi, I’m Jessica Lawrence. I help solopreneurs take control of their bookkeeping and business finances through QuickBooks courses and bookkeeping services. My goal is to help you keep more of your hard-earned money and reduce the stress of managing your business finances. When I started my bookkeeping journey, I saw how confusing it was for small business owners to navigate QuickBooks. That’s why I’m passionate about simplifying it for you.
Let’s break down the QuickBooks options so you can confidently choose the plan that’s best for your business.
QuickBooks Online vs. QuickBooks Desktop vs. QuickBooks Self-Employed
Let’s start out with comparing some of the different QuickBooks Plans.
QuickBooks Online
A cloud-based option that’s perfect for solopreneurs and small businesses who need access from anywhere, anytime.
- Best for: Most soloprenuers
- Why: It’s user-friendly, scalable, and integrates well with other tools. It allows you to manage and see your books as well as giving your bookkeeper, accountant, or tax preparer access as well.
- FYI: Subscription based so you will pay a set amount each month.
QuickBooks Desktop
This is a software-based option that requires installation on a single device. So essentially that means only your bookkeeper or accountant has access to the software that has been downloaded directly to their computer.
- Best for: Larger businesses with specific industry needs and in-house accountants.
- Why: Offers advanced features but lacks the flexibility of QuickBooks Online.
- FYI: Most small business owners aren’t ready for full-time in-house bookkeepers or accountants and if you are reliant on your bookkeepers QuickBooks Desktop account it makes it hard to transition to another bookkeeper or add another team member or have access to your own financial accounts.
QuickBooks Self-Employed
Designed for freelancers and independent contractors with very basic limited features like expense tracking, tax calculations, and mileage tracking.
- Best for: Freelancers or contractors filing a Schedule C when their business is more of a hobby.
- Why: It’s affordable but limited, making it less suitable for solopreneurs planning to grow their business.
- FYI: QuickBooks Solopreneur and QuickBooks Self-Employed are essentially the same thing, focusing on basic tools for freelancers. This is a very limited version that really only focuses on data for your Profit & Loss Statement but not your Balance Sheet or Cash Flow Statement.
My Recommendation: QuickBooks Online is the best choice for 95% of the solopreneurs I meet with who are taking their business seriously and plan to grow and scale their business. QuickBooks Online provides the financial statements and tools you need to really understand the full financial picture for your small business.
While QuickBooks Self-Employed is better than nothing or just managing your books in Excel, it just doesn’t give you a full financial picture of your business and is hard to transition from once you are ready to grow.
While QuickBooks Desktop is better for large business who have full-time W2 in-house accountants to manage their books which most small business owners and solopreneuers do not need.
QuickBooks Online: Which Plan Should You Choose?
So now that we are clear QuickBooks Online is the way to go let’s talk about the different options within QuickBooks Online. QuickBooks Online offers four plans: Simple Start, Essentials, Plus, and Advanced. Here’s a quick overview:
Simple Start
- Best for: New soloprenuers with basic needs.
- Features: Income and expense tracking, invoicing, receipt capture.
- Examples: Freelancers, consultants, coaches, designers, and other professional services
Essentials
- Best for: Solopreneurs managing bills and team collaboration.
- Features: Includes all Simple Start features plus bill management and multi-user access.
- Examples: Have hired employees and need to enter time by employee/project
Plus
- Best for: Solopreneurs who need project tracking, inventory management, or business split out by location/class.
- Features: Includes all Essentials features plus inventory tracking and project profitability tools.
- Examples: Short term rental owners, construction, non-profits, restaurants, law firms
Advanced
- Best for: Large growing businesses with complex needs.
- Features: Advanced reporting, batch transactions, and dedicated account support.
- Examples: Need 25+ users, data to sync with Excel, batch invoices and expenses and 24/7 support
My Suggestion: Start with the Simple Start plan if you’re new to QuickBooks and have basic needs. As your business grows, you can upgrade to Essentials or Plus based on your requirements.
There are some exceptions, for example if you are a construction business or short term rental owner with multiple properties I’d suggest starting with the Plus plan. To really dive into your unique situation and if it makes sense for you to go straight to the Essentials or Plus plan, go ahead and set up a consultation call with me to discuss.
FAQs About Choosing a QuickBooks Plan
Q: Is QuickBooks Solopreneur the same as QuickBooks Self-Employed?
A: Yes, “QuickBooks Solopreneur” is essentially the same offer and often used to describe “QuickBooks Self-Employed”. They are the same product.
Q: Can I switch from QuickBooks Self-Employed to QuickBooks Online?
A: You cannot directly upgrade from QuickBooks Self-Employed to QuickBooks Online plans. They are separate platforms. If you want to switch, you would need to start fresh with a QuickBooks Online account and manually transfer your data. This is one of the reasons I recommend you start with QuickBooks Online Simple Start plan instead which allows you to upgrade or downgrade your plan within QuickBooks Online as needed.
Q: Can I switch from QuickBooks Desktop to QuickBooks Online?
A: You cannot directly upgrade from QuickBooks Desktop to QuickBooks Online. They are separate platforms. If you want to switch, you would need to migrate your desktop data into a new QuickBooks Online account. However, there are several QuickBooks resources available to help you either do this yourself or with the help of a specialist.
Q: What’s the difference between QuickBooks Online and QuickBooks Self-Employed?
A: QuickBooks Self-Employed offers limited features like basic expense tracking and tax calculations that align with your Profit & Loss Statement and Schedule C. QuickBooks Online is more robust and scalable, making it ideal for solopreneurs who want a full financial picture of their business (including your Balance Sheet, Statement of Cash Flows) and plan to grow their business.
Q: Can I switch plans within QuickBooks Online?
A: Yes! QuickBooks Online allows you to upgrade or downgrade your plan as your business needs evolve within the 4 different plans it offers: Simple Start, Essentials, Plus, and Advanced.
Final Thoughts
Choosing the right QuickBooks plan is an important step in taking control of your business finances. For most solopreneurs, QuickBooks Online’s Simple Start plan is a great place to begin. As your business grows, you can explore more advanced options to fit your needs.
Ready to get started? Go sign up for your new QuickBooks account today! Or, better yet, enroll in my QuickBooks Set Up For Solopreneurs course learn everything you need to know to get set up and running smoothly. Together, we’ll make managing your finances a breeze.