If you’ve ever Googled “which QuickBooks version is best for small business” and ended up more confused than when you started, you’re not alone.
Many small business owners know they need better bookkeeping tools but don’t know which version of QuickBooks fits their situation. QuickBooks is everywhere. It’s one of the most trusted accounting solutions for small businesses in Canada. But with so many choices; Online, Desktop, Simple Start, Plus, Advanced, it’s hard to know which one is right for your business.
The wrong version can mean overpaying for features you don’t need, or worse, struggling without the tools that would actually make your life easier.
In this guide, we’ll walk through each version of QuickBooks, what it offers, and how to choose the best one for your business in 2025.
Why Choosing the Right QuickBooks Version Matters
QuickBooks is powerful software, but not every business needs all its features. A freelancer might just need basic invoicing and expense tracking, while a growing retail store may need inventory, payroll, and multi-user access.
If you choose a version that’s too basic, you’ll hit roadblocks. If you go too advanced, you might be paying for things you never use.
The goal isn’t to find the “best” version overall, it’s to find the best one for your business needs.
What QuickBooks Options Are Available in 2025?
QuickBooks comes in two main categories:
1. QuickBooks Online (QBO)
This is the cloud-based version and the most popular among small businesses today.
- QuickBooks Simple Start
- QuickBooks Essentials
- QuickBooks Plus
- QuickBooks Advanced
2. QuickBooks Desktop
Still used by some businesses that prefer locally-installed software.
- QuickBooks Pro Plus
- QuickBooks Premier Plus
- QuickBooks Enterprise
QuickBooks Online continues to see updates and feature improvements in 2025, while Desktop is still supported but generally not recommended unless you have specific offline needs.
Visit QuickBooks Online Plan Comparison Page for more details.
How to Choose Based on Business Type
Let’s break it down by business size and needs.
Freelancers & Sole Proprietors: Start with Simple Start
If you’re just sending a few invoices and tracking expenses, QuickBooks Simple Start will likely do the job. It includes:
- Invoicing
- Expense tracking
- Basic reporting
- Tax calculation
- CRA-ready sales tax features
It’s ideal for:
- Consultants
- Designers
- Freelancers
- Part-time business owners
You can access everything from your phone or laptop, and you don’t need accounting knowledge to use it effectively.
Service-Based Small Businesses: Consider Essentials or Plus
If you run a service-based business and have a few contractors or employees, you’ll want a bit more than Simple Start.
- Essentials adds:
- Bill management
- Time tracking
- Multi-user access (up to 3 users)
- Bill management
- Plus adds:
- Inventory tracking
- Project profitability tracking
- More detailed reporting
- Inventory tracking
Essentials is great for:
- Agencies
- Cleaning services
- IT consultants
- Professional services
Plus is better for:
- Interior designers
- Landscaping businesses
- Retail with limited inventory
- Construction contractors
Product-Based or Scaling Businesses: Go with QuickBooks Online Advanced
If your business is growing fast or you manage inventory, projects, and payroll, QuickBooks Online Advanced is a serious upgrade.
It includes everything from the other plans, plus:
- Customizable reporting (with Fathom)
- Up to 25 users
- Workflow automation
- Role-based permissions
- Dedicated account manager
It’s ideal for:
- Wholesalers
- Larger retailers
- Manufacturers
- Multi-location businesses
Yes, it’s a higher monthly fee (starting around $200 CAD), but if it saves hours of manual reporting, customizes your workflow, and improves accuracy, it can be worth every penny.
When Is QuickBooks Desktop Still a Good Option?
In 2025, most Canadian small businesses are switching to QuickBooks Online. But there are exceptions.
QuickBooks Desktop may work better if:
- You don’t always have reliable internet
- You want to control your own data storage
- You use complex inventory systems that require third-party add-ons
The Desktop version is more traditional, but keep in mind:
- You’ll need to manage backups
- Access is limited to the device it’s installed on
- You pay an annual fee (Pro Plus or Premier Plus)
Common Questions About QuickBooks Versions
Is QuickBooks Online better than Desktop?
For most small businesses, yes. QuickBooks Online is easier to access, better for collaboration, and integrates with modern apps and tools.
Can I switch between versions later?
Yes. You can upgrade from Simple Start to Plus or Advanced any time. Moving from Desktop to Online is also possible, though it takes some planning and possibly a bit of help.
Check the QuickBooks Migration Resource for further help.
How many users can access QuickBooks?
- Simple Start: 1 user
- Essentials: Up to 3
- Plus: Up to 5
- Advanced: Up to 25
User roles and permissions become more customizable at higher levels.
Signs It’s Time to Upgrade Your QuickBooks Plan
- You need multiple users
- You want better reporting tools
- Your accountant says your books are messy
- You’re managing inventory manually
- You’re using spreadsheets for budgeting
As your business grows, QuickBooks needs to grow with you.
Tips for Getting the Most Out of QuickBooks
- Link your bank accounts and credit cards
- Reconcile monthly
- Use categories for every expense
- Customize your chart of accounts
- Automate invoice reminders
- Don’t mix personal and business transactions
QuickBooks isn’t just for taxes, it gives you a real-time picture of how your business is performing. Make it work for you.
Final Thoughts: Which QuickBooks Version Do You Really Need?
Choosing the right version of QuickBooks isn’t about how big your business is, it’s about how complex your needs are.
If you’re just starting out, Simple Start or Essentials may be perfect. But if you’re growing, hiring, or needing more insights into your business, Plus or Advanced can save time and give you the control you need.
The best part? You don’t have to figure it out alone.
Need Help Deciding?
At AccTax, we help Canadian small businesses choose the right QuickBooks version, set it up correctly, and get the most out of it. Whether you need help with setup, training, or troubleshooting, we’ve got your back.
👉 Contact us today for expert QuickBooks support tailored to your business!
