You need an accounting package for your small business, and you’ve narrowed your provider down to Quickbooks. But, Quickbooks has a bunch of different products. You know that the cheaper products won’t provide enough support for your business’ operations.
So you’re wondering, when should I choose Quickbooks Premier Vs Pro? In this article, we’ll help you to resolve the Quickbooks Premier vs Pro debate once and for all by walking you through the unique features of each product and showing you how they rate up against each other.
Why Pick An Upper Echelon Of Quickbooks Software?
Because Quickbooks is the de facto standard for small and medium-sized business accounting software, most companies gravitate to it immediately.
As companies scale, their relationship with Quickbooks changes, however. The smallest businesses find that as they scale, it’s much harder or outright impossible to continue using their old edition of Quickbooks.
The software simply doesn’t offer the ability to handle additional people, customers, or revenues after certain cutoffs. So, they need to upgrade their Quickbooks edition to something more intense like Quickbooks Pro or Quickbooks Premier.
These higher levels of Quickbooks software also have a few types of features which the lower levels don’t. For example, the more you pay for a Quickbooks package, the more it has features like inventory management, invoice generation, and even some payroll functionalities.
Between Quickbooks Pro and Quickbooks Premier, you’ll find most of the accounting features that the most intense small businesses will need — the only question is which of those features your company needs the most.
Quickbooks Premier has some features which are not in Quickbooks Pro. The difference between the two packages ranges from the logistical — like how many users can edit a file — to the essential, like whether historical information on inventory is accessible.
These features include the ability to have up to five concurrent users affecting a file in Quickbooks Premier. Only three users can edit a file in Quickbooks Pro. This is a major consideration if your HR department is growing.
Quickbooks Premier also provides for more extensive reporting of data. With Premier, you can arrange your balance sheets by class and access balance forecasting with the help of the business planner.
You’ll also have a lot more control over the rates of your prices and your billing. Rather than setting fixed percentages for these items like in Quickbooks Pro, in Quickbooks Premier you can set individual unit prices on a per item or per billing basis.
This will give you a lot more flexibility when it comes time to process your books, and you might be able to provide your employees with a higher standard of HR practices which they will appreciate as a result.
Quickbooks Premier also has some inventory assistance features such as:
If your business retains a lot of inventory with many different SKUs, these features will be a lifesaver if you purchase Premier. Your supply chain and revenues will be visible under one hood.
This makes it much easier to calculate essential business metrics and take in your entire company’s prospects at a glance. On the other hand, if the supply chain isn’t a big deal to your business — such as is the case in service businesses — these metrics aren’t nearly as important.
If you do plan on moving a lot of products, the automatic generation of POs and invoicing in Premier will help to cut down on a lot of extra man hours. The benefits of this automation only grow with the customer base of your company.
Likewise, viewing historic deleted entries within your inventory and billing pipeline can be very useful to identify accounting or inventory anomalies. With Pro, you’ll be left to your own devices if that you need to perform record reconciliation.
If you purchase Pro, you’ll be left with your current standard of inventory management and billing.
While many businesses deal with their inventory management and their corporate billing under separate software packages or even separate department headings, smaller businesses can stand to benefit from unifying their pipeline with Premier.
On the other hand, if your business only has a small inventory or provides a service rather than a product, the features offered by Premier are mostly extraneous.
Nonetheless, it may be smart to opt for Premier if you anticipate your company growing over the course of the next year. The line between the scale of customers provisioned by Pro and the scale of customers provisioned by Premier is very thin if your business is growing rapidly.
Likewise, your number of customers will directly influence the amount of revenues and the amount of billing paperwork your company will need to complete. If your company is on the edge of the values covered by Pro, Premier is the smarter choice, even though you may not use 100% of its capacity.
Both of the Quickbooks products are priced for a license on a yearly basis. You may be able to get a discount by signing up for more than one year at a time, but the size of this discount is the same between the two products.
Quickbooks Pro costs $299 for a year, whereas Quickbooks Premier costs $499. Notably, there are several different versions of Premier, ranging from the basic retail package to the Accountant Premier version.
The differences between these versions with relation to Quickbooks Pro are relevant because they simply keep adding the features which you won’t be able to find elsewhere.
Of paramount importance is the ability for Quickbooks Accountant Premier to batch generate transactions and transaction reports. Likewise, Accountant Premier can batch void or batch delete transactions from your records.
These features aren’t in Pro, and they also aren’t in standard Premier — you’ll need to pay a bit extra, which tends to vary depending on the promotion that they’re running at the time.
So, which Quickbooks package wins the match up between Quickbooks Premier vs Pro? The answer is that it depends on the size of your company and whether your company’s accounting needs include the tracking of inventory or not.
If your company has so many HR personnel that you expect more than three people to be editing an accounting file at the same time, you should opt for Quickbooks Premier.
But if your company only has a couple of HR people and doesn’t retain inventory, Pro is more than sufficient. Keep in mind that it’s easy to upgrade from Pro to Premier, but there’s no way to get your money back after you downgrade from Premier to Pro.
The software packages are equally easy to use and are largely identical in their setup and interface options for your employees. Furthermore, you’ll also have access to the excellent Intuit customer service no matter which package you pick.