You’ve made the leap—or maybe you felt shoved—into Quickbooks Online. You’ve been exploring the platform and can’t shake the feeling that something is off. Features you need seem locked behind pricey paywalls, and your team is struggling with access limitations.

Is this really the best choice for my small business?

Before you settle in for the long haul, let’s look at 13 disadvantages of QuickBooks Online and some QuickBooks alternatives so that you can confidently choose the best bookkeeping software for your business. 

What is QuickBooks Online

QuickBooks Online is known as the industry standard for small business owners. It offers a range of features—integration with third-party apps, payroll automation, expense tracking, and remote access—but there’s a pretty heavy learning curve to the software.

QuickBooks Online is an online dashboard that users access with a login. The dashboard contains profit and loss overviews, invoices, and expenses, and sales reports. 

A banking tab allows you to connect your bank and credit cards so that QuickBooks can import and categorize all expenses. The online dashboard can also be shared easily with your accountant. 

Who Uses QuickBooks Online

QuickBooks online is marketed as a tool for small businesses that work with bookkeepers or accountants. The software offers a starting point for smaller businesses as well as the ability to scale a business as different reporting becomes more important. 

However, there are a number of sneaky disadvantages to QuickBooks Online that are worth discussing so you can make an informed choice for your small business. 

13 Sneaky Disadvantages of QuickBooks Online for Small Business Owners

small business bookkeeping

While QuickBooks online is marketed as the ‘best accounting software for small businesses’ it’s important to look at the disadvantages—of which there are a surprising number—and the alternatives before jumping into a QuickBooks subscription for your business. 

#1: Maintaining and adding features is expensive.

QuickBooks Online is packed with features, but wow, does that price tag bite! The top-tier plan—which costs six times more than the basic—gets you up to 25 users, but anything below that, and you’re missing out. 

Adding extras like automated data backups and custom reports is another hit to the wallet. You’re left with a watered-down version unless you go for the priciest subscription.

#2: No built-up restore or backup function.

No built-in restore or backup? Yikes. Without it, you’re vulnerable to both small mistakes (like deleting a transaction) and big disasters (accidentally wiping an entire account or importing transactions to the wrong one). 

Worse yet, there’s no safety net against hackers or server problems. Exporting data one account at a time to a .xls file doesn’t cut it either—it skips important split details and can’t be fully restored. 

#3: Has CSV limitations. 

QuickBooks Online claims to support CSV file imports but only recognizes three fields: date, description, and amount. Important details like categories, memos, and check numbers are ignored. 

If your past transactions include any of that info, get ready for some serious manual editing. And if you’re trying to import years of past bookkeeping data—you’ll need a lot of coffee. It’s a tedious process that makes CSV imports way less efficient than they should be.

#4: Lack of industry-specific features.

Different industries have specific inventory management needs, and while QuickBooks Desktop rises to the occasion with features tailored for sectors like retail, nonprofit, manufacturing, and general contracting, QuickBooks Online falls short. 

General contractors using QuickBooks Desktop can track job costs by vendor, but QuickBooks Online doesn’t offer these industry-specific reports or support robust inventory management. It’s more of a one-size-fits-all tool—which is highly limiting. 

#5: Unable to revert to a previous version.

QuickBooks Online users can’t revert to previous versions of their books without paying for the top-tier plan. The software updates and saves data in the cloud but doesn’t create restoration points. If a transaction is modified or deleted, there’s no easy way to recover it.

Unless you’re prepared to manually re-enter data or upgrade to the advanced plan with backups, you’re out of luck. Many cloud-based platforms offer this functionality at lower price points, so the lack of this essential feature is frustrating.

#6: No payroll functionality.

QuickBooks Online’s basic plan doesn’t include payroll functionality, meaning you’ll need to pay extra each month to add it—and there’s an additional charge per employee

If you were hoping for software that does it all (especially payroll) know that there isn’t a benefit to using payroll in Quickbooks over any other easy-to-use payroll system. 

bookkeeping for small business

#7: Surprise updates.

Since QuickBooks Online is cloud-based, you don’t control when updates or feature changes happen. If an update introduces bugs or removes features, there’s no way to revert to a previous version. 

You’re also at the mercy of QuickBooks when it comes to subscription cost increases—i.e., there’s no way to prevent price hikes. 

#8: Bank and credit card account feed only goes back 90 days.

With QuickBooks Online, your bank and credit card transaction history may only extend back 90 days—this varies from bank to bank. If the connection goes offline for days or weeks, you’ll need to manually enter transactions or download a CSV file from your bank for any data older than 90 days. 

Unfortunately, if you’re importing from CSV, you’ll have to fill in memos, categories, and check numbers, and update any necessary splits afterward. It’s a time-consuming process that can quickly become frustrating!

#9: No control over your data.

Transitioning from QuickBooks Desktop to Online means relinquishing some control over your data. You can’t upload your files directly; instead, you create company files and send them for loading. 

With data stored in the cloud, you’re exposed to typical online risks, like hackers or unreliable internet connections. It’s a trade-off that comes with the convenience of cloud access but doesn’t feel the most data secure.

#10: Can’t upload files from non-Intuit payroll services.

Unlike the desktop version, QuickBooks Online doesn’t allow you to upload payroll data from third-party services like ADP, Paychex, or Paycor. 

This means if you use these payroll companies, you’ll need to manually create payroll journal entries to accurately record your payroll expenses. 

#11: Frequent price increases and upselling.

QuickBooks Online Simple Start is priced at $35/month for a single user but lacks features like billable hours tracking, bill pay, and inventory management. To access these features, users must upgrade to the Essentials plan for $65/month or the Plus plan for $99/month. 

Competitors like Xero and FreshBooks offer more affordable plans starting from $15 and $19 per month, while including features like unlimited users and basic inventory management. QuickBooks Online users frequently note that the platform’s pricing tends to rise more often than that of competitors. 

#12: Limited account users with each plan.

QuickBooks Online claims to be tailored for small businesses, but it comes with limitations on the number of files and users. If your transaction volume spikes or multiple users are active simultaneously, you’ll experience performance issues—like sluggishness and random crashes. 

How significant this becomes depends on your growth trajectory—if you plan to scale quickly, it’s essential to consider whether QuickBooks can keep up with your business demands.

#13: Lack of customer service/support (forum focus over helpline).

QuickBooks offers an online knowledge base with help articles—but not the ones you usually need. While you can contact QuickBooks support, the company primarily relies on its online forums for assistance. 

These community-driven platforms allow users to ask questions and receive answers from fellow QuickBooks users. This can be a double-edged sword—while the forums are active and widely used, they may not always provide the professional support you need.

QuickBooks Online Alternatives

So if QuickBooks Online isn’t the answer for your small business bookkeeping, what is? Here are a few QuickBooks Online alternatives for you to consider:

Xero

Starting at just $15 a month, Xero is your budget-friendly sidekick in the accounting world. It’s packed with features that rival QuickBooks Online, all wrapped up in an easy-to-use package. Get ready to breeze through your bookkeeping with this intuitive software!

FreshBooks

At $19 a month, FreshBooks is the go-to for freelancers and small business warriors alike. Its extensive features make managing invoices and expenses a walk in the park, giving you more time to focus on what you do best.

Wave Financial

Wave Financial offers solid accounting and invoicing software without the price tag. Perfect for those who want the essentials without the extra fluff! There are also paid plans for when you’re ready to level up.

QuickBooks Online: Final Thoughts From an Industry Expert

Let’s face it, when you’re working with a bookkeeper, QuickBooks is the industry go-to. And not without good reason—it’s the gold standard for small business accounting. It integrates seamlessly with almost every software program out there, from payroll to invoicing. 

Most bookkeepers know QuickBooks software like the back of their hand. If you hire a bookkeeper, don’t be alarmed that they are utilizing the benefits of QuickBooks—trust that they’ve been trained around the pitfalls. 

Work with a Bookkeeping Pro

The reality is, bookkeeping for a small business is one of—if not the—most important piece of the small biz puzzle. Your best move? Invest in a bookkeeping pro who will know exactly what software to use and the best ways to utilize it.

But who has time to find a bookkeeper? Thanks to Bookkeeping Match Up, you do! 

We help small businesses find their ideal bookkeeping partners—whether it’s software or professional support—tailored to fit your unique needs and budget. It’s wickedly easy and is guaranteed to match you with the best fit for your small business—check it out!

Disadvantages of QuickBooks Online: Frequently Asked Questions

Who should not use QuickBooks Online?

QuickBooks Online may not be ideal for larger businesses with complex accounting needs, as its functionality can be limited compared to QuickBooks Desktop. Companies requiring robust inventory management or in-depth job costing features may also find it lacking. 

Is it better to use QuickBooks Online or Desktop?

Choosing between QuickBooks Online and Desktop depends on your business’s needs. QuickBooks Online offers cloud accessibility and real-time collaboration, making it great for remote teams. QuickBooks Desktop provides more comprehensive features for specific industries and greater control over data. 

What features are missing from QuickBooks Online?

QuickBooks Online lacks several features compared to its Desktop counterpart, including advanced inventory management, job costing reports, and certain reporting capabilities. Users may also miss functionalities like built-in payroll options, customization for specific industries, and the ability to easily restore previous data versions. 

Find Your Perfect Bookkeeping Match

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Ready to take your bookkeeping game to the next level? Say goodbye to the guesswork of bookkeeping and hello to your perfect match. We connect you with top-notch bookkeeping services that fit your unique needs. Let’s get started!

 

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