The software itself may look like an outdated image on some monitor within a cubicle maze, but it’s versatile in what it can do. The dashboard does an excellent job dividing all accounting aspects into a flowchart type of view, while the sidebar provides quick access to a list of features. That said, it can feel overwhelming and confusing if you don’t have prior accounting knowledge. 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. Once installed, your accounting data will only be accessible on one of these devices, making it difficult to work on the go.
Over 2.3 million Desktop customers have made the switch to QuickBooks Online.1
Both QuickBooks Online and QuickBooks Desktop are designed to handle small business’s bandwidth and needs. Strictly based on ease of use and basic functionality, QuickBooks Online is an easier-to-adopt option that can handle small business accounting needs well. You can (almost) always trust your local access, and QuickBooks Desktop reinforces that by keeping your accounting data on your local drive or network. As I was testing them out, I found QuickBooks Online a lot sleeker, more modern, tax identification number and easier to navigate than QuickBooks Desktop. Every step was prefaced with a tutorial, guiding me in setting up my company’s profile by prompting me to provide specific information.
It starts at $30 a month and includes basic features only, such as mileage tracking and invoicing. However, how to calculate accounting profit and loss 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.
Assisted Bookkeeping: QuickBooks Online Wins
Know that your data is protected without downloading and installing product updates. You don’t have to worry about losing everything in a fire or an unforeseen event. QuickBooks Online is user-friendly, but it requires some prior accounting knowledge to get the most out of it. You can send a copy of your company file to your accountant and import their changes.
How We Evaluated QuickBooks Online vs Desktop
Ultimately, your specific business’s size, type, and needs are the real deciding factors in determining which of the QuickBooks versions is best for your business. Just remember, you will need to make a decision quickly if you want QuickBooks Desktop Pro or Premier, as sales of these products will be discontinued this year. One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022. However, the QuickBooks Desktop app is a very pared-down version of the desktop and is poorly rated. If your business needs sales orders, QuickBooks Desktop is your only option.
Add payroll to QuickBooks Online starting at $45 per month, or to Desktop starting at $50, plus $2 per employee, per month. QuickBooks Desktop is an annual subscription, starting at $549.99 per year, which may be cost-prohibitive for small businesses or cash-strapped startups. While the Desktop version has app integrations, it doesn’t have near as many as the Online version. There are over 200 options instead of the 650-plus to its cloud counterpart.
- Contractors and professional service businesses can use the software to compare revenue by city, customer and job type.
- You can send email invites to your accountant from within the software.
- Also, the guided setup helps new users easily and effectively set up their company information, connect their bank accounts, create customers and vendors, etc.
- While QuickBooks Online does offer security features like multi-factor authorization and encrypted data storage, it’s accessible by anyone with employee login credentials and an internet connection.
- If your home or office has a slow or unpredictable internet connection, QuickBooks Desktop can ensure you can reach most of your data even if the internet goes down overnight.
What stands out most about QuickBooks Online when compared to Desktop is that QBO is cloud-based accounting software. Because of this, QuickBooks Online is much easier to use and has many more integrations and time-saving invoicing automations, such as auto-scheduling. While we’re on the topic of invoicing, QuickBooks Online has the superior product, offering six invoice templates and multilingual invoicing in six languages. You can download a 30-day trial version of QuickBooks Desktop Enterprise only—both the Premier Plus and Pro Plus plans come with a 60-day money-back guarantee, but no free trial. Alternatively, you can sign up for a free 30-day trial with QuickBooks Online. Just know that doing so waives your option to get 50% off your QuickBooks Online subscription goodwill definition for your first three months.
QuickBooks Online is popular for businesses that want flexibility — both in terms of where and how they can access their finances as well as what plan they can choose as they grow. On the other hand, established businesses may get more out of QuickBooks Desktop with its advanced capabilities in a secure database. She started her career writing and editing content about home services before transitioning to home improvement products. She has spent the last year and a half working at a software company, managing content about CRM, project management and other business topics. 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.
However, QuickBooks Online is the better choice for most companies, especially those with remote accountants and multiple employees. The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
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