QuickBooks Review 2025: The Ultimate Small Business Accounting Software?

What Is QuickBooks?#

QuickBooks is the market-leading accounting software for small businesses, developed by Intuit. Launched in 1983 (yes, it’s been around that long), QuickBooks has evolved from desktop software into a comprehensive cloud-based platform that powers over 7 million businesses worldwide.

Whether you’re a freelancer tracking expenses, an e-commerce seller managing inventory, or a service business with employees, QuickBooks offers the tools to handle your finances without needing an accounting degree.

Key Features#

Invoicing and Payments#

QuickBooks makes it easy to create and send professional invoices in minutes. You can customize templates with your logo and branding, set up recurring invoices for regular clients, and send automatic payment reminders for overdue invoices.

The payment processing is seamless — customers can pay directly from the invoice via credit card, debit card, ACH bank transfer, or even Apple Pay. Funds typically hit your account within 1-2 business days.

One standout feature: invoice tracking. You’ll get notifications when clients open your invoice, so you know they received it (great for following up on unpaid invoices tactfully).

Expense Tracking#

QuickBooks automatically imports and categorizes transactions from your connected bank accounts and credit cards. This eliminates hours of manual data entry every month.

You can also snap photos of receipts with the mobile app, and QuickBooks will automatically extract the amount, vendor, and date. No more shoeboxes full of crumpled receipts.

The mileage tracking feature uses GPS to automatically log business miles, which is a godsend at tax time if you drive for work.

Bank Connections#

QuickBooks connects to over 24,000 financial institutions — more than any competitor. Once connected, transactions sync automatically, giving you real-time visibility into your cash flow.

The bank reconciliation feature matches transactions to your records, making monthly reconciliation painless. QuickBooks will flag discrepancies and suggest matches, saving hours compared to manual reconciliation.

Payroll#

QuickBooks Payroll (available as an add-on starting at $45/month + $5/employee) handles everything from calculating paychecks to filing payroll taxes automatically.

Key features include:

• Same-day and next-day direct deposit
• Automatic payroll tax calculations and filing
• W-2 and 1099 preparation
• Time tracking integration
• Workers’ comp administration

It’s one of the easiest payroll systems to set up — we got it running in under 30 minutes.

Tax Preparation#

Come tax season, QuickBooks becomes invaluable. It tracks income and expenses in IRS-friendly categories, generates reports your CPA will love, and even estimates your quarterly tax payments.

The software integrates directly with TurboTax (also owned by Intuit), allowing you to import your year’s financial data with one click. Many accountants also use QuickBooks, making collaboration seamless.

Inventory Management#

If you sell physical products, QuickBooks tracks inventory levels, costs of goods sold (COGS), and reorder points. It supports both simple inventory tracking (available on Plus and higher) and more advanced features like batch and serial number tracking (Advanced plan).

When you create an invoice, QuickBooks automatically decrements inventory and updates your COGS, giving you accurate profit margins in real-time.

Reporting#

QuickBooks offers 40+ pre-built reports including Profit & Loss, Balance Sheet, Cash Flow Statement, Sales Tax reports, and more. You can customize any report, schedule automatic delivery to your email, and export to Excel for further analysis.

The dashboard gives you an at-a-glance view of your business health: income vs expenses, cash flow trends, outstanding invoices, and bills due soon.

Mobile App#

The QuickBooks mobile app (iOS and Android) is surprisingly full-featured. You can:

• Create and send invoices on the go
• Capture receipt photos
• Track mileage automatically
• Check your cash flow and bank balances
• Approve time off requests (if you have employees)

The mobile experience is smooth enough that many users run their entire business from their phone.

Pricing#

QuickBooks Online offers four main pricing tiers (billed annually; monthly billing costs more):

Note: QuickBooks frequently runs promotions offering 50-70% off for the first 3-6 months.

What’s Included at Each Tier#

Simple Start includes:

• Invoicing and payment processing
• Expense and mileage tracking
• Basic reporting
• 1 user

Essentials adds:

• Bill management and payment scheduling
• 3 users
• Time tracking

Plus adds:

• Inventory tracking
• Project profitability tracking
• 5 users

Advanced adds:

• Custom user permissions
• Dedicated account team
• Custom reporting
• 25 users

Add-Ons#

• Payroll: $45/month + $5/employee
• Time tracking: Included with Essentials+
• Payment processing: 2.99% for card transactions, 1% for ACH (max $10)

Who Is QuickBooks Best For?#

QuickBooks is ideal for:

• Small businesses with 1-25 employees who need professional accounting without hiring a full-time bookkeeper
• Service-based businesses (consultants, agencies, contractors) who invoice clients regularly
• E-commerce and retail businesses needing inventory tracking and multi-channel sales integration
• Businesses planning to scale — QuickBooks grows with you from solo freelancer to mid-size company
• Anyone who wants peace of mind at tax time with organized, IRS-ready financial records

It may not be the best fit for:

• Very large enterprises (100+ employees) — consider NetSuite or Sage Intacct
• Non-profits — QuickBooks has a separate nonprofit version, but some prefer specialized tools
• Hobby businesses with minimal transactions — free tools like Wave might be sufficient
• Businesses with extremely complex inventory needs — dedicated inventory systems offer more granularity

QuickBooks vs Competitors#

How does QuickBooks stack up?

QuickBooks wins on breadth of features and integrations. FreshBooks is simpler for service businesses. Xero is comparable but slightly better for international businesses. Wave is great if you’re on a tight budget but lacks advanced features.

Our Verdict#

Common Alternatives to Consider#

QuickBooks vs FreshBooks#

FreshBooks is simpler and more focused on service businesses (freelancers, consultants, agencies). It excels at time tracking and project-based billing but lacks inventory management and has fewer bank integrations. Choose FreshBooks if you want simplicity and don’t need inventory. Choose QuickBooks for a complete accounting solution.

QuickBooks vs Xero#

Xero is QuickBooks’ closest competitor, offering similar features at comparable prices. Xero has a cleaner, more modern interface and better multi-currency support (great for international businesses). QuickBooks has more bank integrations and tighter TurboTax integration. For US-based businesses, QuickBooks edges ahead. For international businesses, consider Xero.

QuickBooks vs Wave#

Wave is completely free for basic accounting and invoicing (they make money on payment processing and payroll add-ons). It’s perfect for very small businesses or side hustles with simple needs. However, Wave lacks many advanced features like inventory tracking, project profitability, and robust reporting. Upgrade to QuickBooks when you outgrow Wave’s limitations.

Tips for Getting Started#

1. Take advantage of the 30-day trial — Test it with real data before committing
2. Connect all your bank accounts and credit cards on day one — Let QuickBooks import historical transactions
3. Set up rules for recurring transactions — QuickBooks will learn to categorize automatically
4. Use the mobile app to scan receipts immediately — Don’t let them pile up
5. Schedule a weekly 15-minute “money date” — Quickly review and categorize transactions while they’re fresh in your mind
6. Consider hiring a bookkeeper to set it up — A few hours with a QuickBooks ProAdvisor can save you weeks of frustration

FAQ#