In a move that may catch many small business owners off guard, QuickBooks has announced the introduction of usage limits for their Plus and Advanced plans, set to take effect from 3 June 2025. This change could significantly impact how businesses use the accounting software, potentially forcing some to upgrade to more expensive plans. 

Here’s what you need to know about these upcoming changes.

What are the new usage limits?

QuickBooks Online Plus users will face the following restrictions:

• Billable users: 5 users
• Chart of accounts: 250 accounts
• Classes and locations (combined): 40
• Accountant users: 2
• Time tracking-only users: Unlimited
• Report-only users: Unlimited

QuickBooks Online Advanced users will have higher limits:

• Billable users: 25 users
• Chart of accounts: Unlimited
• Classes and locations: Unlimited
• Accountant users: 3
• Time tracking-only users: Unlimited
• Report-only users: Unlimited

How will this affect your business?

These new limits could pose significant challenges for growing businesses or those with complex accounting needs. If you exceed these limits, you may face the following consequences:

1. Forced upgrades: You might need to upgrade to a more expensive plan to maintain full functionality.
2. Reduced functionality: Your account could be suspended or have limited access if you exceed the limits.
3. Potential disruption: You may need to restructure your chart of accounts or user management to stay within the limits.

Why is Quickbooks making these changes?

While QuickBooks hasn’t provided a clear explanation for these changes, it appears to be a strategy to push users towards their more expensive Advanced plan. This move has been met with criticism from many long-time users who see it as leveraging market position to justify price increases.

What are your options?

If you’re concerned about the changes, consider the following options:

1. Review your current usage: Check your QuickBooks account to see if you’re close to or exceeding the new limits.
2. Optimise your account: Consider merging duplicate accounts or making unused accounts inactive to reduce your usage.
3. Explore alternatives: This might be an opportune time to evaluate other accounting software options that better suit your needs and budget.
4. Consult with your accountant: Discuss the potential impact on your business and explore strategies to mitigate any disruptions.

Our view…

As accountants who prioritise our clients’ best interests, we’re not impressed with this news! The introduction of usage limits, particularly on the chart of accounts, seems arbitrary and potentially disruptive to businesses with more complex accounting needs. It seems to be a thinly veiled attempt to force users into more expensive plans, rather than a necessary technical limitation.

We’d recommend all QuickBooks users to carefully review their current and future needs in light of these changes. While QuickBooks remains a powerful tool for many businesses, it’s worth considering whether it continues to offer the best value for your specific situation.

Your accounting software should serve your business needs, not the other way around. If you’re concerned about how these usage changes might affect your business, get in touch and we’ll help you review your options. We aren’t affiliated to any package in particular, so can give you an objective view, that has your best interests in mind.