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Writer's pictureAndrea Lyles, EA

Which QuickBooks Online Tier Should You Choose as a Contractor?

Here is the video version of this post if reading is not your thing:



If you're just getting started with QuickBooks, you might feel a little bit confused as to which plan you should choose, so we're going to walk through that today and tell you our recommendations.


First, let's note that there is a QuickBooks Self-Employed option that you may feel tempted to go with because of the price. But this is not a plan that we recommend because it's not a scalable solution. As your business grows, this is not a plan that you will then be able to transition over into one of the regular QuickBooks Online plans.


There are four primary plans: Simple Start, Essentials, Plus, and Advanced. Most of the time we see people either in Simple Start or Plus. Simple Start is great if you're just getting started, you don't have a high volume of transactions, and if you are pretty much just paying for things on the spot. In other words, you don't have bills to enter that you're going to need to pay later. Also, Simple Start does not integrate with most project management software.


We don't see a whole lot of companies using Essentials. We typically move straight from Simple Start to Plus. The perks with Plus are that you can have up to five users and set different levels of permissions for those users. You can also start using the Projects feature to track income and expenses by the job. This is probably the most appealing function for contractors, especially if you don't have a project management software already. If you do have a project management software, this is typically the lowest QuickBooks Online tier that it will integrate with.


We typically see a move up to Advanced when companies need more than five users. But, for the most part, if you are experiencing enough growth to need a higher level of bookkeeping or job budgeting, we will typically recommend that you consider using a project management software and integrating that with QuickBooks Online Plus rather than jumping up to Advanced. The project management software will take care of all of your job costing, and QuickBooks will be your general ledger which also keeps track of all the overhead and general expenses.


Needs do vary from business to business. If you'd like to have a chat with us, we do offer free 30 minute consultations. I'd also like to mention that whether or not you choose to use our services, the following link will allow you to get 30% off of your new subscription for 6 months: QuickBooks Online. If you'd like for us to set up a subscription for you, we are able to extend the discount for 12 months. I hope that you found this helpful and that we get to chat with you soon!


Disclaimer: The general information provided in this post or on this site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason.

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