QuickBooks Online vs Desktop: Which Is Right for Your Business?

quickbooks desktop vs online

When she’s not busy supporting professionals and their businesses, Rachel enjoys actively participating in the QuickSource accounting community. When you sell driving lessons, you are asking your client to purchase a specific service from you. The client may pay at the time of the service or they might send a check later. This is also possible with QuickBooks Desktop, though some banks charge connection fees. If your bank is one such institution, you may opt to upload your transaction data to QBDT yourself.

quickbooks desktop vs online

This is compounded by the fact that the rules list is not really well organized and could have hundreds if not thousands of rules. Both QuickBooks Desktop and QuickBooks Online have the ability to set up bank rules, which are ‘if this, then that’ rules that apply to transactions imported from the bank. Your business is unique, but your routine bookkeeping tasks are going to be similar to many other businesses such as consultants/coaches, dog walkers, and photographers. The transition from QBO to QBDT is rarely smooth and will very likely take multiple attempts to get the data to load. Once loaded, there is extensive post-migration work that will vary from company to company.

QuickBooks Online (QBO) is the cloud-based, online version of accounting software provided through a monthly subscription pricing plan. QuickBooks Online offers upgrade options journal entries and integrates with many add-on third-party apps to increase functionality. Personalized Setup is limited to a 1-hour session with a customer success product expert.

Reporting in QBDT and QBO

QuickBooks Online is generally easier to use than QuickBooks Desktop as it has a more streamlined user interface. QuickBooks Online files are also easier to share because you only need to invite a ProAdvisor to your company file, and they’ll have 24/7 access to your books. However, Intuit’s push for its QuickBooks Online software and discontinuation of its Desktop offering in the UK has caused users to worry about possible sunsetting. QuickBooks Desktop is better for small to large-sized businesses with complex accounting needs requiring more customizable features. Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features. Both QuickBooks Online and QuickBooks Pro and Premier have notoriously poor customer support (QuickBooks Enterprise support has better priority support).

Both platforms come with the basic features needed to manage your accounts, but there are certain differences between QuickBooks Desktop and Online. Click on Reports at the top of the screen, then click on company and financial and finally over to either the profit and loss or the balance sheet report. A frustrating experience that only applies to QBDT is that the bank rules are not updated when the chart of accounts is updated. This means that if you rename an account or reorganize the chart of account list you will get an error when QBDT tries to run this bank rule.

  1. You can do things like automatically add customers to or create receipts in QuickBooks when payments happen in other apps, or track new QuickBooks invoices or payments in another app.
  2. If you have employees, you can add QuickBooks Payroll to your QuickBooks Online account for as little as $45 per month plus $5 per employee.
  3. Product offers, features, functionality are subject to change without notice.
  4. Both QuickBooks Desktop and QuickBooks Online support small business bookkeeping, but the manner in which each product does so differs.
  5. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use.

Probably not, unless your business absolutely needs advanced inventory management features, barcode scanning, or assembly builds. Not only is it the newer tool, but it also seems to be the focus in terms of update frequency, development, and marketing. You should also consider budget constraints before choosing, as QuickBooks Online provides more plans and more diverse pricing options, while QuickBooks Desktop can be more expensive. I want to confidently say that the difference in pricing is due to the considerable amount of features that QuickBooks Desktop offers, but I’m unsure if that’s the case.

Moreover, the benefits of QuickBooks Desktop can be amplified when hosted on the cloud by a reliable partner, combining the extensive features of the Desktop version with the accessibility of Online. QuickBooks Online excels at security due to automatic data backups, encryption, and regular security audits. However, QuickBooks Desktop relies on users to implement security measures and perform regular data backups. The online version will soon be the only available version, and it’s used by hundreds of thousands of American businesses. To find out what we thought about it, please check out our review of QuickBooks Online 2024. Launched in 1983, it was originally aimed at individuals looking to manage their money better.

QuickBooks Desktop vs. Online: The differences

You can check out the complete list of affected services on the QuickBooks website. In the meantime, if you’re currently using QuickBooks Desktop, it’s worth considering transitioning to the online version as soon as possible. QuickBooks has confirmed that they will discontinue support for QuickBooks Desktop 2020 on the 31st of May 2023 as they focus on their online platform.

quickbooks desktop vs online

QuickBooks is a suite of accounting software developed and marketed by Intuit, designed for small and medium-sized businesses to handle their financial management and automate accounting operations. It provides features https://accountingcoaching.online/ that cater to invoicing, expense tracking, payroll management, and tax preparation. QuickBooks Desktop gets more praise for strong functionality, such as project costing and advanced inventory accounting.

Should you choose QuickBooks Desktop or QuickBooks Online?

You can (almost) always trust your local access, and QuickBooks Desktop reinforces that by keeping your accounting data on your local drive or network. QuickBooks Desktop can feel rigid and resistant to modification or integration—the same way Apple products and iOS felt rigid back when everyone had overheating, self-cooking Android phones. QuickBooks Desktop is a better fit for businesses that prefer to store their data locally and are less dependent on real-time updates or extensive collaboration. It’s fair to point out that multiple people can use QuickBooks Desktop over the local network at the office. But when multiple users are working on the same file simultaneously, changes made by one user won’t be instantly visible to the rest of the team.

Both QuickBooks Online and QuickBooks Pro offer a good number of helpful integrations and add-on products. However, QuickBooks Online offers over 750 integrations to QuickBooks Pro’s 260+ integrations. Both include the basic reports you’d expect to find with accounting software, such as a balance sheet, a Profit & Loss report, a cash flow statement, etc. We recommend crunching the numbers to decide whether the online or desktop versions of QuickBooks are right for your specific business. When you move to QuickBooks Online, you’ll create a new account and login.

Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We immerse ourselves in every platform we review by exploring the features down to the finest nuances. Intuit QuickBooks has been pushing its online products, so switching from QuickBooks Online to Desktop isn’t as easy, but it is possible.

Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information. If you have employees, you can add QuickBooks Payroll to your QuickBooks Online account for as little as $45 per month plus $5 per employee. QuickBooks Payroll allows you to pay your employees by checks or direct deposits, e-file and e-pay taxes, print and e-file W-2 Forms at year-end, and more.

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