Many businesses consider QuickBooks Premier over QuickBooks Online because of its advanced inventory management features and the availability of industry-specific features. QuickBooks has become a household name in the world of accounting software. With two main versions available, QuickBooks Online and QuickBooks Desktop, it’s important to understand the differences between them to make an informed decision for your business. In this blog post, we will explore the key differences between the two programs, including QuickBooks Online vs Desktop pros and cons, so that you can decide which one to use for your business. Unlike QuickBooks Online, Desktop Pro includes built-in inventory management.

QuickBooks Online is a cloud-based accounting system that was released in 2004. But the QuickBooks Online advanced plan helps in creating a scalable system for the scalability of the large-scale business. You will get an amazing robust feature set, online payroll, strong accounting, attractive invoices, and more than 600 integrations. The QuickBooks Online is easier to learn and user-friendly than QuickBooks Desktop. QuickBooks Online offers four monthly plans for businesses, each with a specified number of users.

How They Compare: QuickBooks Online vs. QuickBooks Desktop

If you are wondering to know which accounting system product to choose The below write-up will help you in understanding the major difference between QuickBooks online VS Desktop. You can easily compare each product according to user experience, reputation, pricing, features, and much more. On the other hand, QuickBooks Desktop is available as an annual subscription option, which includes software updates and technical support. While the upfront cost of QuickBooks Desktop may be higher, it can be more cost-effective for businesses in the long run, especially if they do not require regular feature updates or cloud accessibility.

Because QBDT is a local install on your computer, you can access your file at any time. If the internet goes out, you’re still able to view, edit, and otherwise work on your books. There’s never any requirement that you have internet connectivity after the initial download and install. If you need help with the initial setup of your QBO file, you can hire a professional bookkeeper through the ProAdvisor directory.

• A lot goes into the decision between desktop and SaaS products, but at the heart of the debate are several key points.
• I recommend saving a backup of your QuickBooks Desktop company file in case of any issues.
• QuickBooks’ two most popular financial software solutions are QuickBooks Online and QuickBooks Desktop.
• This is potentially why QuickBooks desktop charges for additional software users while QuickBooks online plans come with a specific number of users included.

Both applications can have long wait times to access telephone support, but you’ll likely get a better response if you purchase QuickBooks Online Advanced or QuickBooks Desktop Enterprise, as both offer 24/7 support. QuickBooks Online and QuickBooks Desktop are both excellent small business accounting software applications, both offering complete double-entry accounting as well as automatic processing of closing entries. The maximum amount of users you can have with a QuickBooks Online subscription is 25 (plus an accountant). If you need more users than that, you can contact QuickBooks Online’s customer support to see if you can create a custom plan with custom user access.

Given the needs of most businesses today, QuickBooks Online is the preferred solution for the financial software. QuickBooks Online and QuickBooks Desktop have a number of key differences that may make one more appealing to certain customers. QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium. You can simply locate the Company tab in the top option and choose a button named Export file to QuickBooks Online.

QuickBooks Desktop

QuickBooks Self-Employed, or QBSE, is the version of QBO marketed toward freelancers and other self-employed business owners. Unlike its counterparts, this edition of the software can never be upgraded to the small business editions of the software. On the left you can see the market penetration of both products in the small business segment. Both are widely used and a massive step up from the 18% of small business owners who use no accounting software. QuickBooks Enterprise does sync with the cloud, but is accessed from your computer’s desktop and is available offline or behind a firewall. The product also available for up to 30 users, so is a good choice for a larger business where more employees need access to the accounting system.

Now that we’ve gone over the main differences in features, let’s see the cost of QuickBooks Online vs. Desktop. All feedback, positive or negative, helps us to improve the way we help small businesses. You can switch from QuickBooks Online to Desktop, and many users who are used to traditional accounting and working with QuickBooks tend to do so after giving QBO a try. Overall, QuickBooks Pro reviews are more favorable, but both user bases have good and bad things to say about each product.

• The price and subscription frequency of QuickBooks Desktop and QuickBooks Online differ depending on the specific product — and, subsequently, the version — you choose.
• By comprehending the distinct attributes of each version, accounting professionals can offer insightful advice to their clients, optimizing their accounting practices and overall business performance.
• QuickBooks Online offers four monthly plans for businesses, each with a specified number of users.
• This may signal future abandonment of its Desktop version as more people move to the cloud.

Both even give you access to many independent QuickBooks ProAdvisors whom you can hire to help you get started and keep things in order. The home page displays the most essential functions, including Vendors, Customers, Employees, and Banking. Each function includes respective icons that allow you to access and perform certain transactions easily, such as Enter Bills for vendors, Create Invoices for customers, and Enter Time for employees. If you’re interested in QuickBooks Online, you should check out our QuickBooks Online versions comparison to help you decide which is best for you.

In contrast, QuickBooks Online focuses on providing a streamlined and user-friendly experience. While it may not offer the same breadth of features as QuickBooks Desktop, it compensates with regular updates and improvements. Updates in QuickBooks Online are automatic and seamless, ensuring users always have access to the latest enhancements without the need for manual installations or upgrades.

Sales Orders:

There is a significant difference between QuickBooks Online vs Desktop in terms of sharing files with accountants. You simply need to send an email invitation to grant your accountants or bookkeepers access to your company file, allowing them to collaborate with you in real time. Your accountant can log in to the QuickBooks Online platform using their own credentials, 4 Popular Free and Open Source Accounting Software eliminating the need for file transfers or physical handoffs. All QuickBooks Online plans include good reporting options, with the Advanced plan offering the most comprehensive reporting options, including key financial metrics such as revenue and cash flow. This is a tie since both QuickBooks Online and QuickBooks Desktop offer users the same support options.

Notably, only QuickBooks Desktop Enterprise includes 24/7 customer service. Pro Plus and Premier Plus limit customer service hours to just 12 hours a day, weekdays only. However, if you’re not a Mac user, you can choose from all three QuickBooks Desktop  plans. The QuickBooks Desktop Premier Plus plan is particularly useful for business that want industry-specific features.

If you’re a freelancer, stick with its Self-Employed plan, which is $15 per month 9after the three-month discount at $7.50). Features include mileage tracking, basic reporting, income and expense tracking, capture and organize receipts and estimation of quarterly taxes. QuickBooks Online provides effortless integration with various third-party applications due to its SaaS (Software as a Service) nature and APIs (restful APIs). Though QuickBooks Desktop also facilitates integrations, their configuration and maintenance may require slightly different technical knowledge to integrate other software correctly. QuickBooks Online also has a dedicated network of connections built out to a growing library of business applications to bring all financial information into one place.

QuickBooks Online VS Desktop: Pricing

Even though QB Desktop has more comprehensive features in general, there are some key features that only QuickBooks Online has, such as international invoicing. Both QuickBooks Online and QuickBooks Desktop offer a large number of features. While they share many of the same features, QuickBooks Desktop’s features are often more developed, except when it comes to invoicing. Kathy Haan, MBA is a former financial advisor-turned-writer and business coach. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel.

Security Measures

Both QuickBooks Desktop and QuickBooks Online share similar functionality to help fulfill your business’ needs. However, there are some key differences that could feasibly sway your preference to one over the other. Once the initial setup has been completed, you’re wholly responsible for handling your books.

Is QuickBooks Online better than QuickBooks Desktop?

QuickBooks Online has limitations like internet dependence, ongoing subscription costs, limited customization options, and fewer integrations compared to QuickBooks Desktop. It may not suit businesses with advanced needs or those without reliable internet access. On the other hand, QuickBooks Desktop is known for its robust and comprehensive features. It outperforms the Online version when it comes to advanced job costing, batch invoicing, and industry-specific features.