QuickBooks Desktop vs QuickBooks Online: The Better Option?
QuickBooks Desktop vs QuickBooks Online- Two core products of Intuit are in competition for your approval. Which one is suitable for your business is a question you might be wondering. While one offers ample features, scalability, and security, the latter ensures remote accessibility and a modernized take. However, this information is not enough to determine its suitability.
Through this article, you’ll learn the difference between QuickBooks Online and Desktop– the pros, cons, features, and user experiences. At the end of it, you’ll have a complete comparison at hand.
A Quick Brief of QuickBooks Online vs Desktop
Intuit’s leading products- QuickBooks Online vs Desktop are excellent accounting systems with outstanding features.
QuickBooks Online
QuickBooks Online takes your favorite accounting software into a cloud-based, mobile-friendly version. It has evolved into a sophisticated version with constant upgrades and user feedback.
It emerged with the intention to provide anywhere, anytime access. The cloud accounting system empowers you to experience that as well as ease of use. It’s ideal even for non-accountants.
QuickBooks Online login provides flexibility and scalability. It’s not too heavy on the pockets and small to mid-sized firms prefer it. QuickBooks Online options are Online Plus, Online Plus and Payroll Core Bundle, and Online Plus and Payroll Premium Bundle.
QuickBooks Desktop
QuickBooks Desktop is the traditional version that accountants and businesses are accustomed to. It has many features and tools that professionals love. There are more than 200 integrations, ensuring flexibility and seamless workflow.
It’s better suited for accounting experts because it has a learning curve. There’s considerable knowledge and expertise requirement. This on-premise accounting solution has sophisticated, industry-specific functionalities.
QuickBooks Desktop options available currently are QuickBooks Desktop Plus and QuickBooks Desktop Enterprise.
QuickBooks Online vs Desktop Comparison Chart at a Glance
The QuickBooks Online vs Desktop comparison chart shows similarities and differences. The core functions of both systems overlap. However, pricing, collaborations, accessibility, etc., are differential points. Let’s check them out at a glance here:
| Basis | QuickBooks Online | QuickBooks Desktop |
| Anywhere, anytime through cloud setup and compatibility with all devices | Only works on a dedicated machine on-premise |
| Advanced accounting functions and a wide range of features | Comprehensive accounting functions and features for those handling them independently |
| Employees have separate login credentials to log into the system from anywhere at any time | More control and stability because information is stored on one machine only |
| Real-time possibility as changes get reflected directly | Possible on local networks but restricted mostly because of the local network. |
| Possible with over 750+ apps | Limited to 200+ apps |
| Automatic application | Manual download and installation of QuickBooks updates |
| Gives insights into email generation, accounting data, and auto-drafting | Unavailable |
| $93020/year Online Plus (starting price for QB Online products) | $1922 annual subscription for Desktop Enterprise Gold (starting price) |
| Automatic data backups and protection provided to your data | Manage yourself |
| Available with some features | Limited functions like receipt capturing, storing, and management |
| Around 25 users (additional fees may apply) | Up to 40 users (additional fees may apply) |
| Latest design to simplify tasks based on user feedback | Older |
| Provided with additional fees | Not applicable |
| Built-in HR and benefits. Fees applicable for 401(k) and health insurance | 401(k) only with additional fees |
| QB Online doesn’t have many industry-specific prospects | The Enterprise version covers various industries with specific editions like Accountants, Contractors, Manufacturing, Wholesale & Retail, Non-Profit, and Professional services. Premier Plus shows industry-specific reports and tools. |
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In-Depth Difference between QuickBooks Online and QuickBooks Desktop
Let’s go into details of the differences between QuickBooks Online and QuickBooks Desktop:
QuickBooks Desktop vs QuickBooks Online Features & Functions
Here’s a tabular view of QuickBooks Desktop vs QuickBooks Online functions and features:
| QuickBooks Online | QuickBooks Desktop |
| Income & Expenses | Income & Expenses |
| Invoice & Payments | Invoice & Payments |
| Tax Deductions | Tax Deductions |
| Comprehensive Reports- Deeper business insights | Powerful Reports – 200+, built-in |
| Receipt Capture | Receipt Capture |
| Mileage Tracking | Mileage Tracking |
| Sales & Sales Tax | Sales & Sales Tax |
| Estimates | Estimates |
| Contractors | 1099 Contractors |
| Bill Management | Bill Management |
| Enter Time | Time Tracking with QuickBooks Time Elite |
| Inventory Capabilities- Track insights, import from Excel, sync with Amazon, etc. | Advanced Inventory Management- Automated from the warehouse to the customer |
| Cash Flow | Cash Flow- Forecasting also available |
| Project Profitability | Project Profitability |
| Mileage Tracking | Mileage Tracking |
| Expert Tax Assistance | Bill & PO Workflow Approvals |
| Multiple Currencies | Data Restoration |
| Financial Planning | Customized Access |
| Anytime, Anywhere Access | Workflow Automation |
| QuickBooks Online App | Batch Invoices & Expenses |
| Live Insights From Your Accountant | 24/7 Support & Training |
| Full-Service Payroll | On-Demand Online Training |
| Auto Payroll | Multi-Company Management |
| Employee Portal | Intercompany Transactions |
| Health Benefits For Your Team | 200+ App Integrations |
| 401(k) Plans | Payroll Built-In |
| Includes 5 Users + Additional On Fees | Max 40 Users |
| 1099 E-File & Pay | Add-Ons:
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| Worker’s Comp Administration | ———————– |
| Next-Day/ Same-Day Direct Deposit | ———————– |
| Expert Product Assistance (24/7 In Some Plans) | ———————– |
| HR Support Center | ———————– |
| Expert Review | ———————– |
| Employee Track Time | ———————– |
The Online Plus + Payroll Core Bundle and Online Plus + Payroll Premium Bundle offer expert payroll assistance and advanced tools. It includes time tracking in the Premium bundle. For desktops, there are built-in payroll features for you to use.
When you compare QuickBooks Online vs Desktop, you’ll find many similarities and contrasts in the same services. For instance, both versions provide reports. But QB Desktop has 200+ customizable reports. In comparison, QB Online only offers profitability reports, inventory reports, enhanced sales reports, etc.
QuickBooks Online vs Desktop Pros and Cons
The QuickBooks Online vs Desktop pros and cons here will tell you which one will fare well for your needs:
| Intuit Product | Pros | Cons |
| QuickBooks Desktop |
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| QuickBooks Online |
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QB Online vs QB Desktop Pricing
The pricing structure may seem costly or inexpensive depending on the plan you choose. Here’s an insight into QB Online vs QB Desktop prices:
QuickBooks Desktop Pricing
QuickBooks Desktop Enterprise pricing is for annual subscriptions as follows:
- Gold- $1922 per year for basic functionality, payroll, and business insights
- Platinum- $2363 per year for robust functionality with industry-related tools
- Diamond- $4668 per year (monthly subscriptions also available) for maximum functionality and automation
The Enterprise solution is the primary Desktop subscription offered by Intuit now.
QuickBooks Online Pricing
Let’s look at the prices of QB Online plans:
- Online Plus- $93020 annually for accounting only
- Online Plus and Payroll Core Bundle- $1400 per year plus $6 per employee per month for accounting and payroll
- Online Plus and Payroll Premium Bundle- $172886 annually plus $ 9 per employee per month for accounting, payroll, and time tracking
The QuickBooks Desktop vs QuickBooks Online pricing is also different because the latter has monthly plans as follows:
- Simple Start $1750 per month
- Essentials $3250 per month
- Plus $4950 per month
- Advanced $11750 per month
QuickBooks Online may be more suitable for businesses needing fixed monthly plans. The additional charges can pile up in QB Desktop. So, it’s better if you only have one user and can run it with a locally installed server.
QuickBooks Cloud vs Desktop Uniquenesses
Check out the unique traits of QuickBooks Cloud vs Desktop:
- QuickBooks Online is cloud-based, so you only need login credentials, a device, and an internet connection. Compared to on-the-go accounting, you install QB Desktop locally on one or multiple servers for on-premise work only.
- QB Online shines in speed and real-time collaborations, even remotely. QB Desktop doesn’t offer multi-user accessibility in real-time. However, other inventory, job-costing, and batch invoicing features make it special.
- QuickBooks Desktop keeps the data on a local drive or network. QuickBooks Online has multiple security measures like encryptions and multi-factor authentication. There may be more stability and control in the Desktop version because of cyber security issues in the latter.
- Your modern expectations can get crashed with QB Desktop’s slow loading in some aspects. It depends on your device’s processing powers and resources to operate. However, QB Online is cloud-based running on Intuit servers. So, it’s quicker in more respects.
Of all desktop software solutions, QB Desktop is the most interconnected app. However, in QuickBooks Online vs Desktop Enterprise, the Online version can integrate with over 750 third-party apps.
QuickBooks Software vs Online User Experiences
User experiences for QuickBooks software vs online are varied. Many users are reluctant to switch to QuickBooks Online despite the easy migration process. Based on various testimonials on top-ranking sites, users are more accustomed to:
- QuickBooks Desktop’s interface
- Robust features
- Some more capabilities like reporting and invoicing
Since QB Online has emerged recently, they feel the functionalities will take time to evolve and reach the level QB Desktop has set. Despite this, QuickBooks Online is increasingly becoming a fan favorite for its scalability and flexibility. The user-friendliness and non-existent learning curve for QB Online are commendable.
QuickBooks Desktop vs QuickBooks Online: Which to Choose?
Based on an in-depth analysis of QuickBooks Desktop vs QuickBooks Online above, here is the suitability:
Go for QuickBooks Desktop if you:
- Need a more robust accounting and inventory package
- Want a good fit for your niche business
- Have to manage multiple business bookkeeping requirements
- Have an in-house team that collaborates on the same network in the office
- Can afford QB Desktop plans
Go for QuickBooks Online if you:
- Run an e-commerce business
- Have businesses with multiple users
- Need on-the-go accounting
- Can manage a centralized platform with access for HR, accountants, and other teams
Finishing Up
We hope this detailed discussion of QuickBooks Desktop vs QuickBooks Online gives you the required insights. Both versions have their merits and demerits, but it ultimately depends on your needs. So, when choosing one of these options, know your goals and see which one aligns well.
FAQs
Is QuickBooks Online better than Desktop?
QuickBooks Online is better than desktop in many ways, which include:
- Remote access because of cloud-based setup
- Scalability potential
- Easy-on-the-pocket pricing structure
- Faster loading and quicker responses
- More than 750 integrations with third-party apps
- Stringent security measures
- Automatic backups and updates
There may be some drawbacks in the Online version but it’s mostly evolving for a better future.
What’s the contrast between QuickBooks desktop and QuickBooks online?
The major differences between QuickBooks Desktop & QuickBooks Online are as follows:
- QuickBooks Desktop is installed locally while QuickBooks Online is cloud-based.
- The desktop version requires in-person on-premise presence. The online version helps with remote access and real-time collaboration.
- QB Desktop offers over 200 integrations while Online provides 750+ third-party interconnections.
These contrasts highlight the specific traits of each version.
What is better than QuickBooks?
QuickBooks accounting software has several specialties that make it a go-to choice for various small businesses and freelancers. If you’re looking for something better than this, it’s better to know what your needs are. Mostly, QuickBooks has advanced tools, constant updates, and an excellent support team, including AI assistance in QuickBooks Online. For more guidance, you can reach out to our team. We can help determine which software would be apt for your needs.
How many versions of QuickBooks are there?
QuickBooks now comes in two versions- QuickBooks Desktop and QuickBooks Online. The desktop products include:
- Desktop Enterprise Accounting
- Desktop Payroll
- Desktop Payments
QuickBooks Online has
- Online Accounting
- Online Advanced Accounting
- Online Payments
- Online Payroll
