What Changed in QuickBooks Online Pricing in 2021: What You Need to Know

16 Jun 2021 What Changed in QuickBooks Online Pricing in 2021: What You Need to Know

Authored by: Hal Rosen, CPA, Haynie & Company Partner

Key Takeaways:

• QuickBooks Online Pricing Changes: Significant increases in QuickBooks Online pricing, effective July 15, 2021, across Essentials, Plus, and Advanced plans.
• Price Increases: QBO Essentials rises from $40 to $50/month, QBO Plus goes from $70 to $80/month, and QBO Advanced from $150 to $180/month.
• Wholesale Discount Program Ends: The previous wholesale discount program is discontinued for new subscriptions and changes, effective July 15, 2021. Existing users are grandfathered in.
• ProAdvisor Preferred Pricing Introduced: A new discount program offering 40% off, but with reduced discounts compared to the previous wholesale program.
• Multi-Company Pricing Changes: Parent company pricing increases starting September 1, 2021, while child company pricing remains the same for a limited time.

Intuit recently announced important QuickBooks Online 2021 pricing changes set to take effect starting July 15, 2021. The pricing tiers for QuickBooks Online Essentials, Plus, and Advanced are increasing, marking the first price hike in two years. This article breaks down QuickBooks Online pricing changes for 2021, including the discontinuation of the Wholesale Discount Program and the introduction of the ProAdvisor Preferred Pricing program.

QuickBooks Online Pricing Tiers Explained

If you’re wondering how QuickBooks Online pricing compares in 2021 versus 2020, here’s a breakdown of the upcoming changes:

• QuickBooks Online Essentials: Increasing from $40 to $50/month.
• QuickBooks Online Plus: Increasing from $70 to $80/month.
• QuickBooks Online Advanced: Increasing from $150 to $180/month.

The main QuickBooks Online plans—Simple Start, Essentials, and Plus—offer different features and pricing to suit various business needs. The features and plans available may differ for new users or depending on your region.

Please note that prices and features may vary based on location, eligibility, or promotional offers. Some features or services may incur an additional cost beyond the standard subscription fee.

These changes affect new subscriptions starting July 15, 2021, and existing client-billed subscriptions after August 1, 2021.

Why Did QuickBooks Increase Prices in 2021?

The QuickBooks Online 2021 price increase follows a period of stable pricing. Intuit attributes these increases to the continued enhancement of their platform, including new features, services, and updates. Recent improvements include real time data updates, enhancements to the mobile app for managing finances on the go, integrated bill pay, and advanced cash flow management tools. There are also improved profit and loss reporting capabilities and advanced accounting features to support detailed financial oversight. These enhancements are designed to help users and run your business more efficiently, ensuring QuickBooks Online continues to meet the evolving needs of its customers. While some customers may find the price increase concerning, Intuit has stated that these changes are designed to improve the overall user experience and maintain the quality of service provided to QuickBooks Online customers.

What Changed in QuickBooks Online Pricing in 2021?

Key Changes in QuickBooks Online 2021 Pricing:

• The Wholesale Discount Program is being discontinued for new subscriptions, upgrades, and downgrades starting July 15, 2021. Accountants and advisors often purchase QuickBooks Online subscriptions on behalf of their clients, and these changes will impact how such purchases are managed.
• Existing customers who are enrolled before July 14, 2021, will remain on the old pricing structure and can make changes to their quickbooks online subscription without facing the increased rates. Accountants and accounting professionals should be aware that these updates may affect their ability to manage discounts and subscriptions for their clients, as well as how payments are processed, including payment features and the ability to get paid.
• A new discount program, ProAdvisor Preferred Pricing, will replace the Wholesale Discount Program. This will offer a 40% reduction compared to the previous discount plan but will be more limited. The new program affects clients and their subscriptions, and is available for eligible users. Subscription management is handled through QuickBooks Online Accountant, which allows accountants to efficiently manage client accounts and discounts. QuickBooks Online Payroll and QuickBooks Online Payroll Elite are available as add-ons, with pricing and features for QuickBooks Payroll subject to eligibility criteria and additional fees may apply. Please note that certain services or features may incur extra costs—fees apply. Users are strongly advised to review the terms and conditions, terms conditions and fees, and additional terms conditions for full details on program eligibility, pricing, and service agreements.

QuickBooks Online Simple Start vs Essentials 2021

One key comparison for users is the difference between QuickBooks Online Simple Start vs Essentials in 2021:

• QuickBooks Online Simple Start: Best suited for single users with basic bookkeeping needs, priced at $25/month (no price increase). QuickBooks Self-Employed is also available for sole proprietors and self employed individuals who do not need inventory tracking or payroll.
• QuickBooks Online Essentials: A step up, designed for small businesses with up to three users and a broader set of features, priced at $50/month in 2021. This plan works well for businesses that need to manage more complex work, such as tracking expenses, handling invoices, and working with multiple users.

If you’re considering an upgrade, be aware of the QuickBooks Online Simple Start vs Essentials 2021 pricing difference as the plans offer varying levels of functionality based on your business size and needs. Each plan helps users manage their work and ongoing working tasks, making it easier to stay on top of accounting and bookkeeping activities.

Multi-Company Setup Pricing Changes

Starting September 1, 2021, multi-company pricing will change as well:

• Existing multi-company setups (established by July 14, 2021) will see an increase in parent company pricing.
• New multi-company setups will be subject to new pricing structures, with discounts applying for the parent company but child company pricing increasing to $20/month.

When setting up multiple companies, you will need to manage separate accounts for each entity. This includes organizing different account structures, such as bank accounts or customer accounts, to ensure accurate financial tracking and reporting across all accounts.

Frequently Asked Questions (FAQs)

Why did QuickBooks Online increase prices in 2021?

QuickBooks Online pricing was increased to support ongoing improvements and enhancements to the platform, ensuring the service meets customer needs while maintaining high-quality support.

What are the new QuickBooks Online pricing tiers for 2021?

• QuickBooks Essentials: $50/month (up from $40)
• QuickBooks Plus: $80/month (up from $70)
• QuickBooks Advanced: $180/month (up from $150)

What is the ProAdvisor Preferred Pricing Program?

The ProAdvisor Preferred Pricing program is Intuit’s new discount plan, offering a 40% discount compared to the previous wholesale discount for new customers and upgrades.

How does the price change affect multi-company setups?

For multi-company setups, pricing for the parent company will increase starting September 1, 2021, while child company pricing will stay the same for a limited time.

Can I still get the old pricing after the price increase?

Yes, existing customers enrolled before July 14, 2021, will be grandfathered into the old pricing and can make subscription changes without facing the price increase.

Contact us