QuickBooks Pro vs Premier: Which One is Right for Your Small Business?
Many companies automate their internal processes to 1.) achieve maximum outcomes, while 2.) minimize the time it traditionally takes to get results. However, when it comes to accounting, many small businesses are not comfortable migrating their operations to the cloud and prefer using Quickbooks desktop pro vs premier.
In this article, we’ll compare QuickBooks Pro vs. Premier, this QuickBooks comparison may help business owners decide which version best matches their company’s current needs.
What is QuickBooks?
QuickBooks, developed by the software company Intuit, is an accounting tool designed specifically for small- to medium-sized companies. It allows users to manage their invoices, track their cash flows, and pay bills all in one platform.
QuickBooks products are particularly beneficial to companies that need help generating month- and year-end financial reports, either for tax purposes or for getting additional funding. The software includes payroll integration and bank transaction management, as well as 24/7 chat support.
The company also launched a cloud-based accounting platform known as QuickBooks Online, which is for organizations and companies that want to run their accounting operations on the cloud.
QuickBooks Comparison: Pro vs. Premier
Here we’ve broken down the QuickBooks version comparison, both the similarities and the differences between QuickBooks Pro and Premier in terms of features. Let’s start with the ways in which they are similar.
What are the similarities between QuickBooks Pro and Premier?
1. Track income and expenses
With both platforms, small business owners use QuickBooks desktop version comparison so they can easily determine which version can import their existing financial data from Microsoft Excel or other programs supported by QuickBooks Desktop efficiently. They can also easily connect their bank to the software to categorize transactions, although corresponding charges apply.
2. Get real-time invoice status
QuickBooks Pro and Premier lets users create personalized professional invoices and payment receipts, as well as set reminders on pending payments. Both can also bill partners regularly and stay up-to-date on the cash flow with invoice status alerts.
3. Customize sales reports
Through the Pro and Premier platforms, these QuickBooks products allow business owners to use filters to customize their company’s sales reports so that the reports focus on the information that’s most important to the business – whether that’s sales from taxable customers, sales by state, daily sales by payment method, or payments linked to open invoices, among other options.
4. Manage unpaid bills
It’s imperative that small businesses stay on top of all their monthly bills or accounts payable. With so many different payments due at different times throughout the month, this can be difficult to manage. QuickBooks Pro and Premier both help track and pay recurring operational expenses by creating a spreadsheet of vendors the business owes, the amount they’re owed, and what for.
5. Record employee time-ins and outs
QuickBooks Pro and Premier will both allow human resources to clock employee time, including accruals of vacation and sick leaves. Business owners can also use either platform to track billable hours according to their clients and add them to invoices when needed.
6. Oversee inventory round-the-clock
Managing available products and estimating the total cost of inventory can take time, which could otherwise be used for more critical tasks. QuickBooks Pro and Premier make it possible to track inventory and receive notifications as soon as products run low.
7. Comply with 1099 forms
The IRS Form 1099 requires all businesses to report the following to the Federal government: all taxable incomes paid to vendors, contractors, attorneys, or freelance workers who provided services amounting to more than $600. QuickBooks Pro and Premier both allow companies to track all third-party payments and put them together in the software’s 1099 category. Companies may also file their 1099s straight from QuickBooks with additional charges.
8. Ensure data recovery during downtimes
Companies are assured that their financial information is secure with automated data recovery and backup in place on both platforms.
What is the difference between QuickBooks Pro and Premier?
QuickBooks Premier builds upon the Pro platform to offer a more robust accounting system. The premiere is designed for businesses that require more specialized functions, whereas Pro is designed for those in need of simple accounting.
Here’s a breakdown of the main differences between the two:
1. Reports generation and tracking
Creating financial reports on what is QuickBooks pro, QuickBooks premier edition,
is a breeze, except that more industry-specific reports (150 and up) can be generated when small business owners subscribe to Premier.
QuickBooks pro versus premier: both plans allow users to create profit and loss analyses, balance sheets, and expense reporting in one dashboard. Premier, however, makes it possible for business owners to track their profitability according to product, client, or project. This feature is not available in the Pro version.
2. Pricing model
Since Premiere features more functionalities than Pro, it is more expensive. See below for price comparison:
To compare QuickBooks desktop versions both the Pro and Premier are fairly priced, given what they each offer. When evaluating which may be best for your company, it will boil down to the urgent needs of your business. Some small companies may opt for the Pro version initially to try the software out first before getting the Premier or Enterprise plans.
For small business owners who want to hire or outsource an accountant but don’t have the budget, QuickBooks Premier is a good alternative because of its added features.
3. Sales forecasts
One of the best-added features of QuickBooks Premier is its forecasting capabilities. Companies that want to focus on the growth of sales need forecast reports to make better marketing decisions. With the help of Premier, business owners can easily track their forecast progress either via percentage or dollar format.
For example, owners of a small retail business can create a new sales forecast or use existing data to project future sales. Using QuickBooks Premier, they can estimate whether the business is ready for an expansion, or if more informed financial decisions need to be made in order to meet the annual sales targets. These features are not available in Pro. This can also be observed in the difference between QuickBooks desktop pro and pro plus.
4. Industry-specific capabilities
QuickBooks Premier features tailor-made in-app solutions that help businesses to better manage and track their inventory, and create reports that fit the following industry-specific niches in particular:
- General contractors
QuickBooks Premier allows contractors to create reports per vendor to monitor expenses and see which vendors need to be paid. They can also customize job cost reports and modify job orders at a glance.
- Manufacturing and wholesale
Businesses in this sector can use QuickBooks Premier to track inventory at a more comprehensive level. They can run reports that tell which products are running low on inventory and therefore need re-ordering. You’ll also be able to see which products are performing best in terms of sales so you can remove the ones that aren’t performing well. Furthermore, users can easily prioritize open sales orders and close them at their own pace.
- Not-for-profit organizations
Through QuickBooks Premier, users can monitor who the biggest donors are and quickly create donation statements by the end of the year. They can also comply with IRS Form 990, which is a requirement for tax-exempt organizations.
QuickBooks Premier offers sales summaries, inventory reports, and profit-and-loss analyses to its users. Users can also bill suppliers and analyze expenses in real-time, using personalized invoices.
- Professional Services
Freelancers can take advantage of QuickBooks Premier to see which clients need to send their payments, set different billing rates according to client, project, or service provided, and analyze profitability reports.
5. Number of users
In Quickbooks desktop comparison, QuickBooks Desktop Pro allows up to three users simultaneously using the account, while Premier allows up to 5 users. This means that using Premier guarantees more work done in the same period of time.
It’s worth mentioning that QuickBooks Pro also has a QuickBooks Pro Plus version. The main difference between the QuickBooks Pro vs Pro Plus is that the latter has an annual subscription model, compared with Pro that’s only software. The QuickBooks Pro Plus also has unlimited chat support and automatic data backup, which are features that Pro users will have to pay for separately.
What is the difference between QuickBooks Pro and pro plus?
QuickBooks Pro has two such versions, and they both include a slew of useful features for your business. This article will compare the difference between QuickBooks Pro and pro plus. This can assist you in making a more informed decision. QuickBooks Pro is an accounting software package designed to help small and medium-sized businesses manage their financial transactions and company procedures. It enables simultaneous access to the same company file by three persons. On the other hand, the difference between QuickBooks desktop pro and pro plus, is that QuickBooks Desktop Pro Plus is a subscription-based product that offers all of the functionality of Desktop Pro plus some enhanced payroll tools. Apart from the functions included with QuickBooks Pro (Inventory Management, Sales Tax Management, Invoices, Bills and Accounts Payable, and Income and Expense Tracking), in this Quickbooks desktop comparison, you’ll also receive the following: Annual updates, Freephone assistance, and Free automatic data backups.
Can you upgrade from QuickBooks Pro to Premier?
Users who wish to upgrade from QuickBooks Pro to the Premier platform. You may employ Quickbooks desktop pro vs premier. This will tell how they can easily transfer their data to the latter. To do this, you simply need to install QuickBooks Desktop Premier. You’ll be able to access the Premier edition’s added features immediately once the installation is complete. (Make sure you do not uninstall the Pro version before the Premier version is done installing.)
QuickBooks pro versus premier: If the version of QuickBooks Premier that you are upgrading to is from the same year as the QuickBooks Pro platform you were previously using, then all the financial data you had entered into the Pro version will automatically transfer over when you upgrade. This means if you’re currently using QuickBooks Pro 2020 and are planning to migrate the files to Premier, you should use the 2020 version of Premier as well.
Can you downgrade from QuickBooks Premier to Pro?
What is QuickBooks pro, QuickBooks premier edition? Since QuickBooks Desktop Pro and Premier are interchangeable, users can switch back to the Pro edition. It’s good to compare QuickBooks products. The Premier version does feature added functionalities such as industry-specific reports, sales orders, and forecasts, which are not available in the Pro version. If you revert to Pro from the Premier version, you will not be able to access these added functionalities. There is also a possibility that existing data you had entered into Premier may not be captured into the Pro edition.
All-new features of QuickBooks Desktop Pro and Premier 2021
Intuit recently unveiled the new powerhouse features of QuickBooks Desktop Pro and Premier 2021. This is QuickBooks desktop version comparison. The features include:
- Automatic categorizing of bank transactions using better guidelines and batch editing
- Automated recurring statements to various customer groups
- Integration of brand logo as well as custom formatting on invoices and receipts
- New customer management tools that allow users to automatically update its customer groups according to location, payment balance, or status.
Ready for an Upgrade? You Can Also Try QuickBooks Desktop Enterprise
QuickBooks Enterprise 2021 contains all the robust features of Premier, plus more:
- Categorizing receipt expense transactions are made easier, thanks to the Enterprise’s mobile app. Users can simply take a photo of the receipt, import it into the application and review the expenses later on.
- Priority Circle Loyalty Program. Customers of QuickBooks Enterprise are part of the Priority Circle Loyalty Program, which gives them a dedicated team, complimentary training, and priority support from QuickBooks’ top specialists.
- Barcode scanning. Warehouse workers can easily scan product barcodes for real-time updating of inventory and tracking of sales orders.
- End-to-end sales workflow. Using QuickBooks Enterprise, business owners can oversee the entire sales workflow from the central dashboard. They can also fill out and print shipping labels, and send items to a picker or packer.
- Up to 30 users. Imagine how many reports can be generated when 30 people are using the Enterprise platform simultaneously. This gives business owners more time building the company’s network or getting more clients.
- More than 200 pre-set report templates. Users can either choose among hundreds of report templates or generate their own using Enterprise.
- Customized access. Since 30 people can access a single Quickbooks Enterprise account, business owners can nominate pre-set user roles and permissions. The access is also customizable, so not all Enterprise users with access to the same account can see the same set of sensitive financial data.
Which version of QuickBooks is the best for the business?
When asking which QuickBooks version is right for your organization, it’s important to assess your current requirements as well as your budget. Quickbooks version comparison can help decide which to use. Businesses can compare QuickBooks products. Smaller companies that are new to managing their financial data using accounting software can start off with the Pro version and then upgrade to Premier or Enterprise if the need arises.
Medium-sized organizations that have industry-specific accounting needs are likely better off purchasing the Premier version since it offers added features that are tailor-fit for more advanced requirements.
QuickBooks Pro vs. Premier: Frequently Asked Questions (FAQs)
FAQ #1. What is the difference between QuickBooks Premier and Premier Plus?
QuickBooks Premier Plus is basically an upgrade of the QuickBooks Premier. Both versions can accommodate up to 5 users. But QuickBooks Premier Plus contains features that are not available with the Premier subscription. It includes:
- Advanced inventory tracking and reporting
- Purchase orders
- Sales orders
- Job costing
- Bill Tracker Pro
- Free unlimited phone support
- Automatic data backups
Overall, both versions offer robust functionalities for small businesses. However, if you’re a larger company and need more advanced bookkeeping features, the QuickBooks Premier Plus would be a better choice. However, if you’re in the early stages of operation and don’t need the additional features, QuickBooks Premier would fit just fine.
FAQ #2. What is the cost of QuickBooks Premier?
The latest version of QuickBooks is priced at $549.99 per year. With the subscription, your business can take advantage of industry-specific accounting software, which can accommodate up to 5 users.
Intuit also offers the QuickBooks Premier Plus + Payroll plan at $1,049.99 per year. This bundle includes the features offered in the Premier Plus version and payroll functionalities that include tax calculations and preparations, employee payroll processing, and more.
FAQ #3. What Does QuickBooks Pro do?
QuickBooks Pro is a helpful software for small businesses as it offers a variety of features including invoicing, payment tracking, and managing payroll among others. You can also connect it directly to your bank account and credit cards, so it’s easier to track expenses. The software is specifically designed for smaller businesses and can be customized to fit the needs of your small business.
FAQ #4. Is QuickBooks Desktop being phased out?
No. QuickBooks Desktop is not going to be discontinued. However, Intuit recently announced that it will be discontinuing QuickBooks Desktop’s 2019 by May 31, 2022. That means that businesses won’t be able to access the features of all QuickBooks Desktop versions, including Pro, Premier, and Enterprise solutions version19, starting June 1, 2022.
If you’re using v19 of QuickBooks Desktop, it’s imperative to start planning your transition to a new accounting software of upgrading your current QuickBooks Desktop to the latest version of the tool. You can find more information on Intuit’s QuickBooks website.
QuickBooks generally discontinue their Desktop versions three years after their release. That said, if you’re currently using the 2021 version of the tool, the product will most likely be viable until 2024.
FAQ #5. Can I switch from QuickBooks Premier to QuickBooks Pro?
According to Intuit QuickBooks, you can easily downgrade or upgrade between Premier and Pro as long as both are of the same versions (i.e., Pro 2022 and Premium 2022).
FAQ #6. What are the different versions of QuickBooks?
QuickBooks comes in six different versions:
- QuickBooks Self-Employed – tailored for freelancers
- QuickBooks Pro Plus – best for medium-sized businesses
- QuickBooks Premier Plus – fit for niche-specific businesses
- QuickBooks Enterprise – designed for large enterprises
- QuickBooks for Mac – specifically for Mac users
- QuickBooks Online – best for small businesses overall
Each QuickBooks version is designed to target a specific business size. However, QuickBooks Online could be an excellent alternative for small businesses looking for a cloud-based solution.
FAQ #7. Is QuickBooks Pro only subscription-based?
Intuit has recently announced that as of 2022, the company will be offering their QuickBooks Desktop (Pro Plus and Premier Plus) products subscription-only. That means, instead of making a one-time purchase (like the previous versions), you will have to pay a yearly subscription to use the features of your chosen version.
FAQ #8. What is the difference between QuickBooks Desktop Pro and Enterprise?
The main difference between QuickBooks Desktop Pro and Enterprise is that Enterprise offers more features and is designed for businesses with a large number of employees. Some of the additional features offered by Enterprise include:
- Ability to create custom fields and reports
- More detailed financial reports
- Tracking inventory and Sales Orders
- Multiple user access (up to 30 users)
However, QuickBooks Pro is still a very comprehensive software package and should be enough to meet the needs of a small business. Although it doesn’t offer the features mentioned above, companies can cover accounting and bookkeeping tasks like tracking sales and inventory, printing checks, setting up reminders for taxes or overdue payments, following up with customer payments, and more.
Another notable difference between the two Desktop versions is the cost. Naturally, Enterprise comes at a much higher price tag considering the advanced functionalities. QuickBooks Enterprise’s subscription starts at $1,340 a year, while Pro Plus 2022 starts at $349.99 a year.
FAQ #9. What is the cheapest version of QuickBooks Desktop?
The subscription for QuickBooks Pro Plus 2022 starts at $349.99/year and is the cheapest plan among the QuickBooks Desktop products.
FAQ #10. What are the pros and cons of QuickBooks Online vs. Desktop?
There are a few key distinctions that make one product a superior choice to the other. Here’s a comparison of QuickBooks Online vs. Desktop:
- Pros: cheaper upfront cost, access from any device with an internet connection, no software to install, automatic updates
- Cons: cannot customize as much as the desktop version, limited support hours, can be slow to update account information
- Pros: more customization options, can run on multiple devices, support available by phone or in-person
- Cons: more expensive upfront cost, must install software, updates can be slow, customer support is not free
Overall, QuickBooks Online is a less expensive and more portable option than QuickBooks Desktop.
FAQ #11. What is the best QuickBooks Desktop?
It depends on your needs. QuickBooks Desktop comes in a variety of versions (Pro, Premier, and Enterprise), so you can find the best one that fits your business needs. Larger and fast-growing companies typically need more advanced accounting and bookkeeping features and may need to give access to more people. In that case, they would be better off with QuickBooks Enterprise.
QuickBooks Pro and Premier offer robust accounting and bookkeeping features and maybe a good choice for small businesses and medium-sized businesses, respectively.
Since every business is different, it’s important to compare the different versions of QuickBooks Desktop to see which one would work best for your needs. You can find a comparison chart on the Intuit website that will help you make your decision.
Of course, the list of questions regarding the QuickBooks Desktop is exhaustive. As Intuit’s QuickBooks Desktop continues to shift and improve each year, it’s more likely that new questions will emerge. As a business owner, it’s crucial to be informed of the latest updates, so you’ll be able to make adjustments to your software whenever necessary.