ZipBooks is more affordable than QuickBooks Online, with a free plan and more affordable paid subscription options. However, QuickBooks is reasonably priced, has many more features than ZipBooks, and is a better all-around bookkeeping system. We recommend QuickBooks over ZipBooks for most small businesses because it features missing in ZipBooks, such as inventory management, a mobile app, and integrated payroll.
After thoroughly evaluating ZipBooks vs QuickBooks, we found that:
- ZipBooks is adequate for service-based small businesses and freelancers that need an easy-to-use and affordable solution for income and expense tracking
- QuickBooks Online is more suitable for most businesses, especially those with inventory
We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.
We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios.
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3.3 ★ | 4.3 ★ | |
Monthly Pricing | $0 to $35; custom pricing for the Accountant plan | $35 to $235 |
Free Trial | 30 days for the paid plans | 30 days |
New Customer Discount | ✕ | 50% for 3 months; can’t be combined with the free trial |
Key Features |
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Ease of Sharing With External Accountants | Invitation can be easily sent via email | Invitation can be easily sent via email |
Scalability | Supports unlimited users in Sophisticated and Accountant plans | Supports 25 users in the highest tier, Advanced |
Mobile App | ✕ | iOS and Android; has most of the features of the desktop app |
Ease of Use | Easy, but lacks some time-saving features like transaction entry shortcuts | Easy; has shortcut buttons for quicker data entry |
Average Rating on Third-party Sites | ||
Use Cases and Pros & Cons
- Companies or freelancers looking for free accounting software: ZipBooks’ Starter plan is free for one user and one bank account connection. It is ideal for solopreneurs and freelancers needing to keep track of invoices and bills. With it, you get unlimited invoicing and billing for your business. In contrast, QuickBooks Online lacks a free subscription tier.
- Multicompany accounting: QuickBooks Online only offers a single-entity plan, meaning you can’t manage multiple organizations under one plan. With ZipBooks Sophisticated, you can track the bookkeeping for multiple organizations.
- Accountants with clients using ZipBooks: ZipBooks offers a plan for certified public accountants (CPAs) and bookkeepers to help assist their clients. The Accountant plan is custom-priced and includes unlimited users and bank account connections. It also has co-branding features to help distinguish your bookkeeping company from your competitors.
Pros
- Offers a free plan for a single user
- Lets you send unlimited invoices in all its plans
- Allows you to set up automated payment reminders
- Has more affordable plans than most other similar software
Cons
- Doesn’t allow you to customize chart of accounts in the free and entry-level paid plan
- Has a free plan that’s a bit limited, such as doesn’t allow you to customize your chart of accounts
- Doesn’t let you print checks and generate reconciliation reports
- Doesn’t track the costs of inventory and the COGS
- Ecommerce businesses: As our best ecommerce accounting software, QuickBooks Online can integrate with your ecommerce platform to record changes in inventory and sales automatically. QuickBooks Online can integrate with popular ecommerce platforms such as Shopify, WooCommerce, Square, Squarespace, Wix, and Zapier. ZipBooks lacks ecommerce integrations.
- Retail businesses: ZipBooks doesn’t have an inventory module to track inventory stock levels, cost of goods sold (COGS), and cost of ending inventory. QuickBooks Online can do all of those things, and it incorporates inventory costs when creating invoices and purchase orders (POs).
- Banking and cash management: QuickBooks Online, our leading bank reconciliation software, makes it easy to manage multiple bank accounts and cards in one place. If you’re uncomfortable connecting your bank to QuickBooks, you can still use its cash accounting features, such as bank reconciliation. Also, if you don’t have a bank feed, you can import your bank statement via a comma-separated values (CSV) file.
- Hourly billing: QuickBooks Online allows you to charge time and expenses to a client and project and then add that time automatically to the next invoice generated for that client.
- Businesses with employees: QuickBooks Payroll is built into QuickBooks Online and can be activated easily and used directly from your QuickBooks Online dashboard.
Pros
- Is popular among accountants, making it very easy to find help
- Offers more enhanced accounting features than most competitors
- Can track activity by class and location
- Has plenty of integration options
- Has great inventory accounting
Cons
- Doesn’t offer a free plan
- Is a bit expensive
- Doesn’t support multiple companies; separate subscription is required for each company
- Companies that need more affordable inventory accounting: ZipBooks lacks inventory management while with QuickBooks, you have to get Plus ($90 monthly) to access the inventory features. If you need a more affordable solution for tracking inventory items, then Xero is a great choice. It allows you to manage inventory for as low as $15 a month, and it supports unlimited users as opposed to five users in QuickBooks Plus. Read our review of Xero to learn more.
- Companies looking for a free accounting platform for multiple users: ZipBooks Starter supports only one user. If you have multiple users, you can consider Wave, which allows unlimited users and is our top-recommended free accounting software. Our detailed Wave review discusses its free accounting features.
- Businesses that prefer desktop-based software: Both ZipBooks and QuickBooks are cloud-based, meaning they need an internet connection to run. If you want the ability to access your software without the internet, a locally installed solution like QuickBooks Premier is a great alternative. Head to our QuickBooks Premier review to explore its desktop-based features.
Still can’t decide? If you need additional recommendations, check out our roundup of the best small business accounting software.
Fit Small Business Case Study
When comparing ZipBooks and QuickBooks using our internal case study, we looked into several factors, including features, pricing, ease of use, and customer support. The chart below sums up our findings.
Case Study for ZipBooks vs QuickBooks Online
Touch the graph above to interact Click on the graphs above to interact
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ZipBooks From free; tested at $35 monthly (Sophisticated)
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QuickBooks Online Starting at $30 per month; tested at $90 monthly (Plus)
ZipBooks stands out in pricing and user reviews, but QuickBooks Online wins in all the other categories. We explain the details in the pricing and feature discussions that follow.
User Reviews: ZipBooks
ZipBooks | QuickBooks Online | |
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Average Rating on Third-party Sites | ||
Users Like |
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Users Dislike |
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Most of the ZipBooks reviews we found online are positive, which isn’t surprising given that it’s a simple software. QuickBooks Online has many features, and it has more aspects to be critiqued than ZipBooks. ZipBooks wins because it does score higher, but it’s worth noting that it has far fewer reviews than QuickBooks Online.
One user is delighted that ZipBooks has an intuitive user interface, so they were able to get started with the program quickly. We agree that it’s easy to use, but we hope that the provider considers adding a shortcut button in the dashboard for quicker recording of transactions.
Moreover, some like that ZipBooks’ free plan supports an unlimited number of transactions and customers, while others shared that even the paid plans are more affordable than most other similar software. Businesses that need only one accounting user and have basic accounting needs will appreciate the free plan, but if you require multiple users and advanced features, you should consider upgrading to a paid subscription.
Aligning with our insights above, some reviewers complain that the free plan has many missing basic functionality. Some features missing in the free plan include recurring invoicing and the ability to customize the chart of accounts. Also, one user said that they’re frustrated that there isn’t that much room for invoice customizations. I explored the invoicing feature, and I wasn’t that impressed because I was unable to change the basic layout of the invoice template.
Expert Tip from Tim Yoder, CPA: When I reviewed ZipBooks for our case study, I was a bit annoyed by how it upgraded my free account to a paid plan without warning. If you click on a feature excluded from the free plan, you are immediately upgraded without any confirmation that you wish this to happen. But to be fair, features not in the current subscription level are marked as such, and I was able to revert to the free plan without being charged.
As of this writing, here’s how ZipBooks is rated on major review websites:
Many users commended QuickBooks Online for its simple and intuitive user interface. We are also impressed with the interface and like that the dashboard has shortcut buttons unlike in ZipBooks. Moreover, many reviewers appreciate its extensive accounting feature set and its robust reporting capability.
Based on our in-depth analysis, QuickBooks’ most notable features are banking, A/P and A/R management, and inventory tracking. We also concur that it has excellent reporting features, especially with the Plus and Advanced versions.
Meanwhile, most of the negative feedback we found are attributed to its unresponsive and inefficient customer support. Based on my personal experience, I would say that its customer support can be a hit-or-miss. Sometimes I get the right person, but on other occasions, I get transferred multiple times before getting the assistance I need.
On a tangent, one user complained that it takes too many steps to perform some tasks, like printing a check. This reviewer might be new to the QuickBooks platform. In my perspective, I believe check printing is pretty intuitive, especially if you’ve already done it a couple of times.
Here are the average ratings of QuickBooks Online on top review sites:
Pricing: ZipBooks Wins
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4.8 out of 5 | 3 out of 5 |
Monthly Pricing |
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Number of Users |
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Free Trial | 30 days | 30 days |
Free Plan | ✓ | ✕ |
New Customer Discount | ✕ | 50% for 3 months; can’t be combined with the free trial |
ZipBooks is a budget choice because of its free version and low-priced plans, while QuickBooks Online is more expensive, being the industry leader in advanced accounting features. ZipBooks is the winner based purely on price because its free plan is ideal for freelancers, while its highest plan is suitable for small businesses with basic accounting needs.
We compare QuickBooks Online’s plans to help you decide which is right for you.
Features: QuickBooks Online Wins
Note that our feature comparison is based on QuickBooks Online’s Plus plan ($90 a month) vs ZipBooks’ Sophisticated ($35 monthly).
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.9 out of 5 | 5 out of 5 |
Create & Send Invoices | ✓ | ✓ |
Upload Logo to Your Invoice | ✓ | ✓ |
Email & Print Invoices | ✓ | ✓ |
Track Outstanding Invoices | ✓ | ✓ |
Generate Recurring Invoices | ✓ | ✓ |
Accept Short Payments From Customers | ✓ | ✓ |
Choose From Different Invoice Templates | ✕ | ✓ |
Change Invoice Colors | ✕ | ✓ |
Calculates Sales Tax Rate Based on Customer Address | ✕ | ✓ |
We awarded QuickBooks Online the winner in banking because it allows you to upload your files of transactions manually, which is useful if you don’t want to connect your bank account to your accounting software. Another advantage is that it allows you to print checks, which is great if you’re paying your vendors regularly by checks.
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.9 out of 5 | 5 out of 5 |
Create & Send Invoices | ✓ | ✓ |
Upload Logo to Your Invoice | ✓ | ✓ |
Email & Print Invoices | ✓ | ✓ |
Track Outstanding Invoices | ✓ | ✓ |
Generate Recurring Invoices | ✓ | ✓ |
Accept Short Payments From Customers | ✕ | ✓ |
Choose From Different Invoice Templates | ✕ | ✓ |
Change Invoice Colors | ✕ | ✓ |
Calculates Sales Tax Rate Based on Customer Address | ✕ | ✓ |
Invoices in QuickBooks Online are more customizable than those in ZipBooks. QuickBooks Online lets you choose from different templates and change invoice colors, which is impossible with ZipBooks.
Also, a standout feature of QuickBooks Online is the ability to calculate the total tax rates automatically to apply to an invoice based on your customer’s address, which is great if you’re collecting taxable payments from different states. This feature makes QuickBooks Online our overall best invoicing software.
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.8 out of 5 | 5 out of 5 |
Track Unpaid Bills | ✓ | ✓ |
Store & Manage Vendor Information | ✓ | ✓ |
Create Recurring Expenses | ✓ | ✓ |
Track Payments to Independent Contractors | ✓ | ✓ |
Short Pay an Invoice | ✓ | ✓ |
Capture Expense Receipts | ✕ | ✓ |
Record POs | ✕ | ✓ |
Record Vendor Credits | ✕ | ✓ |
QuickBooks Online takes the lead in A/P management because you can upload expense receipts from your mobile device using the mobile app. The program captures the information automatically and attaches it to an existing transaction or lets you create a new one. Additionally, if you often need to issue POs and vendor credits, then QuickBooks Online is preferable.
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.3 out of 5 | 4.3 out of 5 |
Create an Estimate | ✓ | ✓ |
Convert Estimate to an Invoice | ✕ | ✓ |
Create Projects | ✓ | ✓ |
Track Time | ✓ | ✓ |
Record Actual Inventory Used in Project | ✕ | ✓ |
Compare Estimated vs Actual Costs | ✕ | Available only in Advanced |
QuickBooks Online is also better than ZipBooks when it comes to project accounting, as it allows you to track inventory used in your projects. And while both programs allow you to create an estimate, only QuickBooks lets you convert that estimate into an invoice once it’s approved. Another important feature available in QuickBooks Online Advanced is the ability to compare estimated vs actual project costs, which is useful for tracking project profitability.
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 1.1 out of 5 | 4.9 out of 5 |
Set Up an Inventory Item | ✓ | ✓ |
View Inventory Available | ✕ | ✓ |
Adjust Inventory Levels | ✕ | ✓ |
Set Reorder Points | ✕ | ✓ |
Generate Inventory Reports | ✕ | ✓ |
If your business sells products, you’ll prefer QuickBooks over ZipBooks. ZipBooks allows you to create an inventory item to be added to bills and invoices, but it doesn’t allow you to track inventory. QuickBooks, on the other hand, allows you to monitor the quantity of your products in real time, adjust inventory based on sales and purchases, run inventory reports, and more.
Most importantly, QuickBooks automatically tracks COGS, whereas ZipBooks does not. ZipBooks users with inventory will have to keep track of inventory costs in a spreadsheet or similar tool to comply with the tax rules for deducting inventory costs.
Integrations: QuickBooks Online Wins
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4 out of 5 | 5 out of 5 |
Approximate Number of Integrations Available | 12 | 800+ |
Payroll Integration | ✓ | ✓ |
Time Tracking Integration | ✓ | ✓ |
Electronic Bill Pay Integration | ✕ | ✓ |
QuickBooks Online wins because it offers a vast number of integrations, as compared to ZipBooks. In contrast, ZipBooks lacks some important integrations, including electronic bill payment—which is important for businesses dealing with many vendors and suppliers. If integration is an essential part of your business requirements, then QuickBooks Online is the clear choice.
QuickBooks Online integrates with over 800 apps, including:
- QuickBooks Payroll
- QuickBooks Time
- BILL
- Melio
- PayPal
- HubSpot
- Gusto
- Expensify
- Square Payroll
- LeanLaw
- TimeRewards
- Homebase
In contrast, ZipBooks currently has 12 integrations. These include:
- Asana
- Slack
- Google Drive
- Google Workspace
- PayPal
- Square Appointments
- Square POS
- Square for Retail
- Square Payments
- Spiceworks Network Monitor
- GrandMaster Suite
- eNETEmployer
Mobile App: QuickBooks Online Wins
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 0 out of 5 | 3 out of 5 |
Create & Send Invoices | ✕ | ✓ |
Receive Payments | ✕ | ✓ |
Capture Expense Receipts | ✕ | ✓ |
Enter Bills | ✕ | ✕ |
View Reports | ✕ | ✓ |
ZipBooks currently doesn’t offer a mobile app, but it can still be accessed through the browser of any device. Meanwhile, QuickBooks’ most useful mobile features are invoicing and receipt scanning. The invoicing feature shows all of your customer’s details, including directions and maps to find your way to their business. You can use it to enter transactions, record expenses, invoice customers, and send reports anywhere.
Ease of Use: QuickBooks Online Wins
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.6 out of 5 | 4.2 out of 5 |
Accessibility | Cloud | Cloud |
Ease of Setup | Easy | Easy |
Assisted Setup | ✕ | ✓ |
Customizable Dashboard | ✕ | ✓ |
Transaction Entry Shortcuts | ✕ | ✓ |
Both ZipBooks and QuickBooks are generally easy to use and set up, but we give the win to QuickBooks Online because it provides more time-saving features, such as a shortcut button for entering new transactions. We’d like to see ZipBooks add a new shortcut feature like an Add New button to the dashboard. New subscribers to QuickBooks Online will be provided a free meeting with a QuickBooks ProAdvisor to set up your books and connect your banks.
Customer Support: QuickBooks Online Wins
ZipBooks | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 2.1 out of 5 | 3.8 out of 5 |
Self-help Resources | ✓ | ✓ |
Live Chat | ✓ | ✓ |
Phone Support | ✕ | Callback only |
Email Support | ✕ | ✕ |
User Community | ✕ | ✓ |
With ZipBooks, the best way to contact a support agent for urgent issues is through live chat. This may be sufficient in many situations, but there will be instances where phone support is crucial. QuickBooks Online, on the other hand, offers phone support (callback). You have to send a request first and wait for a call from QuickBooks. This approach isn’t as immediate as direct phone support, but the ability to communicate over the phone is still helpful for users. This makes QuickBooks Online the winner in this category.
How We Evaluated ZipBooks vs QuickBooks Online
Our ZipBooks vs QuickBooks comparison is based on our internal case study. Below is a breakdown of the scoring criteria:
5% of Overall Score
In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.
7% of Overall Score
This section focuses more on first-time setup and software settings. The software must be quick and easy to set up for new users. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information.
7% of Overall Score
The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use. Lastly, the software must generate useful reports related to cash.
7% of Overall Score
The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
7% of Overall Score
This takes into account customer management, revenue recognition, invoice management, and collections. The software must have A/R features that make it easy for users to collect payments from customers, remind customers of upcoming or overdue invoices, and manage customer obligations through analytic dashboards or reports.
10% of Overall Score
Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units.
10% of Overall Score
Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
4% of Overall Score
In this section, we’re looking at sales tax features. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
4% of Overall Score
Reports are important for managers, owners, and decision-makers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
30% of Overall Score
Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software. For this section, we considered customer service, support network, and a subjective expert opinion score. Users must have easy access to customer service channels in case of problems, questions, or assistance.
Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use. Lastly, our expert opinion score is our subjective rating based on our experience in trying the software.
5% of Overall Score
The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
4% of Overall Score
We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Frequently Asked Questions (FAQs)
ZipBooks has a free plan, and QuickBooks Online doesn’t. Also, QuickBooks Online is more feature-rich, as it includes inventory accounting and a mobile accounting app.
ZipBooks might be better for freelancers or very small businesses without inventory that are on a tight budget and are primarily concerned with compiling income and expenses for a tax return.
Yes, and the best alternative depends on your needs. If you prefer a desktop-based solution, you should consider QuickBooks Desktop. If you want a free alternative, Wave is a great choice. Find more solutions in our roundup of the best small business accounting software.
Bottom Line
Considering the low price of ZipBooks, it’s remarkable how well it stacks up against QuickBooks Online. If you need to keep your costs low, ZipBooks can handle the basic functions that you need for business accounting, unless you sell physical products and need to track inventory. Overall, however, QuickBooks Online takes the lead for its depth of functionality, reporting, and customer support. We recommend it for most small businesses, especially those with inventory.
[1]G2.com | ZipBooks
[2]GetApp | ZipBooks
[3]Capterra | QuickBooks Online
[4]G2.com | QuickBooks Online