QuickBooks Online recently increased its prices again, this time on July 1, 2025. The popular Plus plan is now $16 more expensive compared to July 2024.
With this latest price hike, is it time to start exploring other options? While QuickBooks is widely recognized as the industry standard for small-business accounting, it may not be the best fit for every business.
1. QuickBooks is becoming cost-prohibitive
The continuous price increases by QuickBooks often draw criticism from online users. If your business is struggling to keep up with the escalating costs of QuickBooks, it might be time to consider a more affordable alternative.
For instance, you could calculate the potential savings by switching to a simpler and less expensive option like Zoho Books. While QuickBooks may charge $38 per month, Zoho Books offers plans starting from $0 per month.
Although Zoho Books’ free plan may not offer as many features as QuickBooks’ introductory plan, its Standard tier provides features like automatic bank feeds at a price that is $18 lower per month than QuickBooks’ cheapest option.
If the potential savings from switching to a different software solution make sense for your business, it might be worth exploring. While there’s no guarantee that other products won’t increase their prices over time, some alternatives like Zoho Books have not raised their prices since 2021.
2. Your business is very small with no employees
For many very small businesses, QuickBooks Online may offer more features than necessary. Freelancers or businesses without employees often require basic reporting and invoicing functionalities without the complexities of larger organizations.
These types of businesses typically have simpler finances and straightforward tax requirements compared to larger enterprises. For example, sole proprietors may report their business finances on their personal tax forms, indicating a less detailed bookkeeping process. However, it is essential to maintain separate records for personal and business expenses.
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3. Your business doesn’t require custom fields
QuickBooks Online’s custom fields feature allows for detailed transaction tracking beyond basic categorization. If your business does not need this level of granularity, you might consider simpler alternatives like FreshBooks or Wave. These platforms offer transaction categorization by account without the additional tracking options. FreshBooks plans start at $21 per month, while Wave’s plans begin at $0.
4. Your accountant approves an alternative
Before switching from QuickBooks or selecting new accounting software, consult with your accountant. Share your concerns about QuickBooks and inquire if they are open to working with a different platform.
Many accountants are familiar with Xero, a platform that offers functionality comparable to QuickBooks. If your accountant recommends Xero, it might be worth exploring, especially considering the potential cost savings. Xero’s plans range from $20 to $80 per month.