Compare QuickBooks Online vs QuickBooks Desktop

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If your business is growing rapidly and you anticipate a significant increase in data, Desktop might be the more suitable option. For businesses with less intensive data needs, QuickBooks Online offers sufficient performance. For help assessing your data needs and choosing the right version, consider reaching out to a QuickBooks consultant. Both QuickBooks Online and Desktop offer mobile apps, but their functionality differs. QuickBooks Online’s mobile app what is a cash book definition explanation and types lets you create invoices, track expenses, and view reports, making it a powerful tool for managing finances on the go. It may not offer the same level of customization as the desktop version.

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You must pay an additional fee for every user who wants to access the account simultaneously, whereas Online lets multiple users access the account at the same time. The most notable difference, aside from price, between QuickBooks Online and QuickBooks Desktop is the Online version is cloud-based. The mobile app for Online is robust, and Desktop’s mobile app is so limited, that it essentially functions as a receipt uploader. Working from the cloud means you need an internet connection, so a poor signal or an intermittent connection can be an issue. Its highest-tiered plan is the Advanced option, which costs $100 per month for the first three months, then $200 per month after that. QuickBooks Enterprise is designed for large businesses or small enterprises and starts at $1,481/year or $142/month.

Optional QuickBooks Online add-ons

The platform has an intuitive layout that we were able to navigate on our own. However, QuickBooks also provided help bubbles and other guidance throughout the platform when we opened certain features for the first time. Picking the right QuickBooks version—Online or Desktop—can feel overwhelming. It all comes down to understanding your business needs and how each version can support them.

Matching Features to Specific Business Needs

Accountants often find QuickBooks Pro and Premier to be more traditional, but you don’t have to be an accountant or professional bookkeeper to learn QuickBooks Online. With QuickBooks Online, you can add QuickBooks Online Payroll starting at $50/month. It’s hard to say which software is cheaper because there are so many variables. But there are some general guidelines to know which version might be the one for your business (and your budget). QuickBooks Online supports up to 25 users, which does fall short of the 40 users supported under QuickBooks Desktop. QuickBooks Online is user-friendly, but it requires some prior accounting knowledge to get the most out of it.

QuickBooks Online is more collaborative, whereas QuickBooks Desktop provides more tools for solo users

1. This seamless process keeps your software current and performing well.
2. Automatic backups are a major plus, minimizing the risk of data loss from hardware failures or local disasters.
3. QuickBooks Online supports up to 25 users, which does fall short of the 40 users supported under QuickBooks Desktop.
4. Both QuickBooks Desktop and QuickBooks Online support small business bookkeeping, but the manner in which each product does so differs.
5. Consider your team’s technical proficiency and comfort level with accounting software when making your choice.

Four pricing plans for QuickBooks Online are available, ranging from $35 to $235/month (with an additional $50+/month for payroll). While QuickBooks Online boasts many of the features you’ll find with Desktop, some of its features, such as inventory management, aren’t quite as advanced. Additionally, you won’t find the industry-specific features and reports that you’ll get if you sign up for Desktop. In the battle between QuickBooks Online and Desktop, it’s best to focus on the differences between the two accounting software options since they are so similar.

As Zapier points out, it’s accessible from any device with an internet connection, a significant advantage over Desktop’s local installation. This cloud-based approach simplifies things for businesses that need access to financial data on the go or have teams working remotely. Some advanced features found in the Desktop version are simplified or unavailable in Online. Zapier explains that QuickBooks Desktop, while lacking the same multi-user access, offers a broader set of features for a more in-depth look at your accounting. This can be important for businesses that need advanced reporting, inventory management, or industry-specific tools. Choosing between QuickBooks Online and Desktop really comes down to your specific business needs.

In reality, the best choice depends on your specific needs and preferences, not your accounting expertise (Forbes). If you prefer a traditional software experience and don’t require constant collaboration, Desktop might be a better fit. At FinOptimal, we help businesses like yours determine the right fit. Online, accessible through any internet-connected device, boasts a modern and intuitive interface, as explained by Zapier. This makes it a great option for those new to accounting software or who value accessibility and remote work. Conversely, Desktop’s interface, while more traditional, offers a comprehensive suite of features that experienced users might find more powerful.

While QuickBooks Desktop allows multiple users, it can be more expensive to set up and manage as your team grows. If you’re interested in optimizing your multi-user setup, our partnership program might be helpful. While QBO offers a lot of benefits, it’s important to be aware of its limitations. While it offers project management tools, it doesn’t have the same deferred revenue level of customization as the desktop version, according to Fit Small Business. This could be a problem for businesses with very specific workflows or reporting needs. QuickBooks Desktop, on the other hand, is installed locally, meaning you download and install the software on your computer or multiple computers in your office, for example.

If you’re a smaller business with plans to expand your team, factor in these potential costs when making your decision. FinOptimal’s partnership program can help accounting firms advise their clients on these considerations. QuickBooks Online operates on a monthly subscription model, with various plans the accounting entry for depreciation offering different features and user limits.