Understanding the New QuickBooks Online Pricing Changes for June 2023

Is't that time of year, time for the next round of Pricing changes and trying to decipher what they mean to our clients, and our firms. In an email sent June 8, 2023, The QuickBooks Team outlined upcoming change for the QuickBooks Online, Online Payroll, and Online Payments products and service. We will comb through this email and offer our take on what this means to you as a QB Online user or those who support QuickBooks Online Clients.

Introduction

Our Take: This is the same message as in year's past: In order to focus resources and development....blah blah blah. Then they link to the new features they have launched in the past year. Many of these features hold no value if you don't use them, but nonetheless they are indeed added. Intuit continues to repeat that “Desktop is not going away”. They continue to add features in the product so the pricing increase is designed to offset these new updates. They also continue to add features in the QuickBooks Online edition throughout the year and have increased the price to offset their investment as well.  

QuickBooks Online Pricing Changes

Our Take: There's a lot to take in here, and a lot to unpack. With regards to the QB Online specific versions, Only Essentials and Plus are impacted. Monthly the increase is $5 monthly. If there is any promotional pricing, that will be discounted off the new pricing once that goes into effect from the above dates.From last year. If you have an Annual Subscription it will go into effect on the next renewal date. The FAQ link is an ideal place to go to the direct source as these questions are addressed. 

Annual Pricing

QuickBooks Online Payroll Pricing Changes

Our Take: The employee surcharge for CORE is increasing $1 per employee and the Base Price of Premium is increasing $5, and Elite is unchanged. The other news here is they are offering an Annual option but it's unclear how that will affect the per employee charge.

QuickBooks Online Payments Pricing Changes

This is the biggest change (and the most surprising as we had no advanced knowledge of this change in all of our channels) Depnding on how people are processing payments they could actually see a reduction in fees. We'll break this down into 2 sections, the ProAdvisor Pricing rates and then the Standard Rates

Our Take: The two big changes here is they are eliminating the Monthly Pricing option and eliminating the per transaction charge. So for smaller dollar amount transactions, the per transaction fee could be a significant drop in fees. Also the e-invoicing pricing is a reduction for everyone. Doing the math it will take a transaction of $500 to cost more per transaction than the monthly fee, but the additional monthly fee will take usually $7,500 in monthly credit card sals to break even on the fees, so this aspect is a plus. Keyed-in transactions however is where the sharpest increase will be felt. This is the rate for recurring transactions. A keyed-in transaction of $200 will be paying more in fees on the pay-as you go plan. So for a company with  a lot of recurring transactions, that increase could be significant. it of This is the most confusing part of the email. 

Good news! At schoolofbookkeeping.com we have your back! Even if you are not an active ProAdvisor with Intuit, you can apply for and receive ProAdvisor Preferred Pricing for your clients through us. You can apply on our QuickBooks Payments Page to access our free course, or to apply right on the page.

QuickBooks Online Payments Standard Rates

Our Take: This is a fee increase across the board with the biggest change to ACH - in the past there was a maximum of $10, now existing customers will see that cap increase to $15, and new accounts will not see a cap. it will simply be a straight 1% fee for all ACH transactions. So if someone were to charge $10,000 through ACH, currently the fee would be $10 (the current maximum). For existing customers that fee will be $15, and for new customer that fee will be $100. That is a huge jump in potential fees. So do yourselves and your clients a favor and get on the ProAdvisor Preferred Pricing!!!

Good news! At schoolofbookkeeping.com we have your back! Even if you are not an active ProAdvisor with Intuit, you can apply for and receive ProAdvisor Preferred Pricing for your clients through us. You can apply on our QuickBooks Payments Page to access our free course, or to apply right on the page. We also have our Elite membership plan with provides chat support called QuickAnswers that will let you get back to work.