Contents
- 1 QuickBooks Online vs Desktop: Overview
- 2 Compare QuickBooks Online Versions
- 3 Which QuickBooks Desktop Version Is Right for You?
- 4 QuickBooks Online or QuickBooks Desktop: Which is Better?
- 5 QuickBooks Online vs Desktop Features
- 6 Conclusion!!
- 7 Frequently Asked Questions (FAQs):
- 7.0.1 Q1. What is the difference between QuickBooks online and desktop?
- 7.0.2 Q2. What is better QuickBooks online or desktop?
- 7.0.3 Q3. What is the difference between Quickbooks Online and QuickBooks Pro?
- 7.0.4 Q4. Difference between QuickBooks online vs Mac desktop?
- 7.0.5 Q5. What are the Problems faced while converting quickbooks desktop to online?
- 7.0.6 Q6. What to expect when you switch from quickbooks desktop to quickbooks online?
- 7.0.7 Q7. What data does not convert from quickbooks desktop to quickbooks online?
- 7.0.8 Q8. How long does it take to convert quickbooks desktop to quickbooks online?
- 7.0.9 Q9. Should I switch from a quickbooks desktop to an online one?
QuickBooks Online vs Desktop: Overview
QuickBooks Desktop, a traditional accounting software, requires downloading and installation on your computer. QuickBooks Online, on the other hand, is cloud-based and accessible via the Internet. The Desktop version comes with an annual fee starting from $549.99, while the cloud-based option starts from $15 per month. Mobile apps are available for both versions, but the Desktop app primarily serves as a receipt-uploading tool. In contrast, the Online mobile app offers robust functionality.
QuickBooks Desktop caters to businesses proficient in accounting and does not necessitate real-time collaboration. QuickBooks Online is ideal for businesses needing real-time collaboration and access to their QuickBooks files from any device. Crucially, the two versions function autonomously, ensuring that data inputted on the Desktop remains separate from Online and vice versa.
Compare QuickBooks Online Versions
| Ledger (NEW) | Simple Start | Essentials | Plus | Advanced | |
| Share access with multiple users | 1 user | 1 user | Up to 3 full-access users | Up to 5 full-access users | Up to 25 full-access and custom users |
| Built-in business reports | 40+ (with limitations) | 40+ | 70+ | 90+ | 90+ |
| Share access with accountants | Up to 2 | Up to 2 | Up to 2 | Up to 2 | Up to 3 |
| Track income and expenses | Yes | Yes | Yes | Yes | Yes |
| Maximize Tax Deductions | Yes | Yes | Yes | Yes | Yes |
| Download transactions for your accounts | Yes | Yes | Yes | Yes | Yes |
| Integrate with 3d party apps | Yes (With limitations) | Yes | Yes | Yes | Yes |
| Print Checks & Record Transactions | Yes | Yes | Yes | Yes | Yes |
| Prepare & Print 1099s for Contractors | Yes | Yes | Yes | Yes | Yes |
| Import data from Excel or QuickBooks Desktop | Yes | Yes | Yes | Yes | Yes |
| Set up automated, recurring transactions | Yes | Yes | Yes | Yes | Yes |
| Automated bookkeeping | Yes | Yes | Yes | Yes | Yes |
| Capture and organize receipts | Yes | Yes | Yes | Yes | |
| Access data from any device | Yes | Yes | Yes | Yes | |
| Track sales and sales tax | Yes | Yes | Yes | Yes | |
| Invoice and accept payments | Yes | Yes | Yes | Yes | |
| Create and send estimates | Yes | Yes | Yes | Yes | |
| Track mileage using your smartphone | Yes | Yes | Yes | Yes | |
| Manage and pay bills from vendors | Yes | Yes | Yes | Yes | |
| Connect online sales channels | 0 (QB Commerce sales channels) | 1 sales channel | Connect 3 sales channels | Connect all sales channels | Connect all sales channels |
| Apps Integration diagnostics | Yes | Yes | Yes | Yes | |
| Track billable hours by customer | Yes | Yes | Yes | ||
| Handle multiple currencies | Yes | Yes | Yes | ||
| Set user access levels | Yes | Yes | Yes | ||
| Track project profitability | Yes | Yes | |||
| Track inventory | Yes | Yes | |||
| Create and send purchase orders | Yes | Yes | |||
| Create and manage budgets | Yes | Yes | |||
| Categorize income and expenses using class tracking | Yes | Yes | |||
| Track sales and profitability by location | Yes | Yes | |||
| Automate workflows | Yes | ||||
| Enhanced custom fields | Yes | ||||
| Batch invoices, checks, expenses, bills | Yes | ||||
| Customize access by roles | Yes | ||||
| Backup and Restore | Yes | ||||
| Task manager | Yes | ||||
| Custom chart builder | Yes | ||||
| Cash flow dashboard | Yes | ||||
| Revenue streams dashboard | Yes | ||||
| Priority Circle | Yes | ||||
| Custom report builder | Yes | ||||
| Performance Center | Yes | ||||
| Revenue Recognition | Yes | ||||
| Data Sync with Excel | Yes | ||||
| Employee Expenses | Yes | ||||
| Fixed Assets Accounting | Yes | ||||
| Monitor estimates vs. actuals | Yes |
Which QuickBooks Desktop Version Is Right for You?
It is always important for you to compare QuickBooks Desktop Versions and find which is right for you. Here we have made a detailed and descriptive table to help you understand which is better:
| Features | Pro Plus | Premier Plus | Enterprise |
| Max. Number of Users | 3 | 5 | 40 |
| Data File Size Up to | 150-200 MB | 150-200 MB | 1 GB |
| Pricing | Starting at $799/yr/user | Starting at $799/yr/user | Starting at $1830 00 /yr* |
| Industry-specific Features | No | Yes | Yes |
| Customized Prices within QuickBooks | No | No | Available |
| Individual User Permission | Yes | Yes | Yes, with more advanced options |
| Fixed assets management | No | No | Yes |
| Anytime, Anywhere Access | With Hosting Service | With Hosting Service | With Hosting Service |
| Create Business Plan | No | Yes | Yes |
| Create Reports with QuickBooks StatementWriter | No | Limited to Accountants Only | Yes |
| Predefined User Roles (14 in number) | No | No | Yes |
| Sales Forecast | No | Yes | Yes |
| Work on Multiple Company FilesSimultaneously | No | Limited to Accountants Only | Yes |
| Create Purchase Orders | Yes | Yes | Yes |
| Import Data from Third-party Apps such as Excel,Outlook, Quicken | Yes | Yes | Yes |
| International Sales Tracking | Yes | Yes | Yes |
| Multiple Currency Expense Tracking | Yes | Yes | Yes |
| One-Click Reports | Yes | Yes | Yes |
| Tracking Inventory | Yes | Yes | Yes |
| Bin Location Tracking | No | No | Yes |
| Barcode Capabilities Without Add-on | No | No | Yes |
Also Read: QuickBooks Pro Vs Premier
QuickBooks Online or QuickBooks Desktop: Which is Better?
Pros of QuickBooks Online vs Desktop:
- Cloud-based:
- Accessible from anywhere with an internet connection and login.
- No need for on-premises servers.
- Reduces the requirement for IT staff hours.
- The QuickBooks Accountant (QuickBooks Online) mobile app offers more features.
- QuickBooks Online offers up to 25 users, while QuickBooks Desktop pricing is per user.
- QuickBooks Online can restore company data files, unlike QuickBooks Desktop.
- QuickBooks Online includes free customer support, while some QuickBooks Desktop versions charge extra.
- QuickBooks Online comes with automatic backups and feature updates, while some versions of QuickBooks Desktop charge extra for these services.
AP automation add-on third-party apps: enjoy your choice of AP automation software for:
- Streamlined and automated workflows
- Global batch processing of payables payments
- Automatic payments reconciliation
- Reduced labor needs
- Improved cash flow management
- Reduced fraud risk
Cons of QuickBooks Online vs Desktop:
Cons of QuickBooks Online Compared to QuickBooks Desktop:
- Industry-specific editions: QuickBooks Desktop offers industry-specific editions in its Enterprise version, while QuickBooks Online lacks these specialized options. Additionally, QuickBooks Desktop’s Premier Plus version provides industry-specific tools and reports.
- Robust features: QuickBooks Online doesn’t have as many advanced features as QuickBooks Desktop Enterprise, such as advanced inventory, job costing features, and discounts by customer name.
- Extensive reports: QuickBooks Desktop offers more extensive and comprehensive reporting capabilities.
- Customization options: QuickBooks Desktop, particularly its Enterprise version, provides more customization options compared to QuickBooks Online.
- User limits: QuickBooks Online Advanced is designed for a maximum of 25 users, while QuickBooks Desktop Enterprise can accommodate up to 40 users.
QuickBooks Online vs Desktop Features
Rephrased Text:
QuickBooks Online is a cloud-based accounting software with a subscription-based pricing model, while QuickBooks Desktop is a locally installed software with a one-time purchase option. QuickBooks Online provides multi-user access and regular automatic updates, while QuickBooks Desktop offers advanced customization options and industry-specific versions.
Reworded Text:
Whereas QuickBooks Desktop is installed locally and requires one-time purchases, QuickBooks Online is cloud-based and requires monthly subscriptions. While QuickBooks Desktop offers industry-specific editions and extensive customization, QuickBooks Online provides multi-user access and automated upgrades.
Here we have provided you with a table that gives you all the features of both QuickBooks Online and Desktop:
| Feature | QuickBooks Online | QuickBooks Desktop |
| Accessibility | Cloud-based; accessible from any device with an internet connection | Installed locally on a computer |
| Pricing model | Monthly subscription-based pricing | One-time purchase with optional annual upgrades |
| Version updates | Automatically updated | Requires manual updates and upgrades |
| User access | Multiple users can access it simultaneously | Depending on the license |
| Data storage | Data stored in the cloud | Data stored on the local computer |
| Scalability | Suitable for small to medium-sized businesses | Suitable for small to large-sized businesses |
| Industry-specific tools | Offers industry-specific versions (e.g., retail, nonprofit) | Offers industry-specific versions (e.g., contractor, manufacturing) |
| Customization | Extensive integrations with third-party apps | Limited integrations with third-party apps |
| Integration | Extensive integrations with third-party apps | Limited integrations with third-party apps |
| Remote access | Available through web browser or mobile app | Requires remote desktop software for access |
| Automatic backups | Included in the subscription | Manual backups required |
| Support options | Online support, community forums, and chat | Phone and email support, knowledge base |
Conclusion!!
When comparing QuickBooks Online and QuickBooks Desktop, experts often favor the robust capabilities of QuickBooks Desktop. Hosting QuickBooks Desktop on the cloud through a reliable provider can further enhance its benefits by combining the extensive features of the desktop version with the accessibility of the online version.
Ultimately, the choice between QuickBooks Online and QuickBooks Desktop depends on individual business needs. By understanding the unique offerings of both software, CPAs can make informed recommendations to their clients, helping them improve their accounting processes and overall business efficiency. This blog post aims to provide an in-depth, comparative guide to assist in making this decision.
Frequently Asked Questions (FAQs):
Q1. What is the difference between QuickBooks online and desktop?
When comparing QuickBooks Online and QuickBooks Desktop, it’s important to note the key differences. QuickBooks Online is a cloud-based software with monthly subscriptions, while QuickBooks Desktop is a locally installed software with a one-time purchase. QuickBooks Online provides multi-user access and automatic updates, making it a convenient choice for businesses that need to collaborate and stay up-to-date. On the other hand, QuickBooks Desktop offers advanced customization options and industry-specific versions, catering to businesses with unique needs and complex accounting requirements.
Q2. What is better QuickBooks online or desktop?
Both QuickBooks Online and Desktop are favorable accounting softwares. So depending upon the requirements of your business, you may choose quiche software to use.
Q3. What is the difference between Quickbooks Online and QuickBooks Pro?
QuickBooks Pro, as a traditional desktop software, provides additional calculation features compared to QuickBooks Online. Pro allows the calculation and re-billing of job costs, as well as the ability to calculate discounts specific to customers. These features, while seemingly basic, are practical and merit consideration for businesses that require them.
Q4. Difference between QuickBooks online vs Mac desktop?
The notable difference between QuickBooks Online and QuickBooks Desktop lies in their accessibility and pricing models. QuickBooks Online is a cloud-based software accessible through a monthly subscription, while QuickBooks Desktop is installed locally and requires an annual license purchase.
Q5. What are the Problems faced while converting quickbooks desktop to online?
- Data Size Issue: The data file exceeds the supported size limit for conversion.
- Data Corruption or Stalls: The data file is corrupt or encounters issues during the conversion process.
- Feature Disparities: Certain features may not be directly transferable between the software, requiring workarounds or process adjustments.
- User Interface Differences: The user interface of the software may differ from what users are accustomed to, potentially requiring a learning curve.
Q6. What to expect when you switch from quickbooks desktop to quickbooks online?
Our process doesn’t alter your existing data; we merely transfer it to QuickBooks Online. From that point onward, you’ll enter new data directly into QuickBooks Online. While you’ll retain your QuickBooks Desktop company file, containing your data, accessing it will require an active QuickBooks Desktop subscription.
Q7. What data does not convert from quickbooks desktop to quickbooks online?
Due to some security reasons, your bank account numbers, notes and lists won’t move to QuickBooks Online.
Q8. How long does it take to convert quickbooks desktop to quickbooks online?
The average amount it takes to convert QuickBooks Desktop to QuickBooks Online is 30 minutes.Ensure that your QuickBooks Desktop is running until migration is done.
Q9. Should I switch from a quickbooks desktop to an online one?
When it comes to inventory tracking, QuickBooks Desktop employs the Average Costing method, while QuickBooks Online utilizes the first-in, first-out (FIFO) method. If you have a preference for the Average Costing method, continuing with QuickBooks Desktop would be the most suitable choice for your needs.
