Did you know that more than 80 percent of business failures are associated with cash flow? Managing your finances the right way is clearly important to ensuring business success.
One of the most important parts of managing finances is having the right tools. To that end, you’re likely wondering about different accounting and bookkeeping software. What options are available on the market?
You might be debating between Quicken vs QuickBooks. What are the differences between these two programs, and which one is right for you? This guide has the answers.
Similarities between Quicken and QuickBooks
Both Quicken and QuickBooks are bookkeeping and accounting software. Both programs were published by Intuit. Quicken was sold to another company in 2016.
Both of these financial management tools are available in online versions. They’re primarily for the North American market. There are several localized versions, including Australia, New Zealand, and Singapore.
More versions of Quicken are available, but there is no UK version. QuickBooks is available for the UK market.
Both tools are also available for Windows. Quicken has a Mac version available. QuickBooks also has a Mac version, but it’s US-only.
Difference between Quicken and QuickBooks
So, we know that Quicken and QuickBooks are financial management tools. They were developed on the same platform. What’s the difference between them?
Quicken is intended for personal use. QuickBooks is designed for businesses.
You can see this in the tasks each is designed to handle. Quicken, for example, allows for:
- Household inventories
- Tracking of stocks and bonds
- Retirement planning
QuickBooks doesn’t have any of these features. Why would a small business need help planning for retirement?
Similarly, Quicken doesn’t have many of the business-focused features of QuickBooks. With QuickBooks, you can:
- Develop a business plan
- Track business sales
- Manage payroll
- Track expenses
- Integrate with office productivity software like Excel and Outlook
- Access the program remotely
- Have multiple users
From this list of features, it’s clear that QuickBooks is built to handle more small business tasks.
Quicken vs QuickBooks: Which is Better?
Both programs were developed by the same publisher, so Quicken and QuickBooks work in similar ways. You can use either program to:
- Create invoices
- Find tax deductions
- Create budget reports
- Conduct online banking
Again, QuickBooks offers business features that Quicken doesn’t. For example, you can track unpaid invoices in QuickBooks. You can’t do that with Quicken.
When looking for tax deductions, Quicken recommends those intended for individuals. QuickBooks will let you take advantage of more small business credits.
The biggest difference between the two is thus what they’re intended to do.
A small business can choose to use Quicken. If you have no employees, you don’t need to run payroll. Quicken’s features may be enough for you.
QuickBooks is a much more robust solution for small business owners though. There’s a good chance that you’ll eventually feel limited by what Quicken can do. If you hire employees and need to conduct payroll, you’ll likely run into trouble with Quicken.
Which is Right for Your Business?
The question isn’t if Quicken vs QuickBooks for small business is better. The question is more about what your business needs.
If you’re a very small business that only handles a few invoices and has no payroll, Quicken might be enough. You can create invoices and keep track of your budget with this program.
If you need to do much more, then QuickBooks might be the right choice. If you’ve had late paying clients, you may want the ability to track your unpaid invoices. Sending reminders is much easier with QuickBooks.
QuickBooks is also the right solution if you need access to your books from remote locations. Those who travel or work remotely will find QuickBooks is the better tool. Quicken is just not accessible.
If you work in a Mac environment outside the US, then you won’t be able to use a desktop version of QuickBooks. You may be able to use the online version. This may be fine for your organization, as many businesses use the cloud anyway.
In that case, you may want to use Quicken. If you need to manage payroll or access the program remotely, then you may want to look for other bookkeeping software.
You’ll also need to pay attention to where the software is adapted for use. Users in Germany have access to a local version of Quicken. QuickBooks isn’t available for the German market.
The Bottom Line
Another reason people ask if they should use Quick or QuickBooks comes down to pricing. Simply put, Quicken is less expensive than QuickBooks.
Again, that’s because Quicken is designed for individual use. Quicken is available as an annual subscription.
QuickBooks is billed on a monthly basis and the tally runs much higher. The price per month increases after those three months. At the lowest tier, the cost is more than double the price of Quicken.
Of course, QuickBooks is also more robust and allows you to do more for your business. It could help you save much more than you’re paying.
Doing payroll the right way will help you avoid penalties from local tax authorities. QuickBooks can also help you find more tax breaks for your small business.
In short, QuickBooks provides better value to business users. While you can use Quicken, it may actually end up costing you more. You may also experience more frustration because of the program’s limited functionality.
It is important to make a long-term decision. Quicken data does not easily convert to QuickBooks and vice versa.
If you do need to manage data, then working with a team of QuickBooks Enterprise consultants is usually your best option.
Information Powers Business Success
Now you can make an informed decision about whether Quicken vs QuickBooks is right for your business.
Looking for other tools to help you manage and grow your business? Check out our latest reviews, as well as tips and tricks. With the right information, you can keep your business growing.