Compare QuickBooks Online vs QuickBooks Desktop

In contrast, you need to upgrade to Advanced to be able to use QuickBooks Online’s budget vs. actual reporting feature. QuickBooks Online wins because it offers more professional-looking and customizable invoices than QuickBooks Desktop. In fact, it recently upgraded its invoicing tool where you can now see the final look of your invoice as you complete the invoicing form.

Should I switch to QuickBooks Online?

1. If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work.
2. For the Desktop version, you pay an annual fee starting at $1,922 per year, and the cloud-based option starts at $15 per month.
3. Because of this, QuickBooks Online is much easier to use and has many more integrations and time-saving invoicing automations, such as auto-scheduling.
4. The software must have enough reports that can be generated with a few clicks.
5. Granted, most people agree QuickBooks Online is the better option, but the old-timer is still somehow in the running.

While both QuickBooks Online and Desktop are supported by a large network of independent ProAdvisors, it’s much easier to share your books with your ProAdvisor using QuickBooks Online. Getting assistance with your Desktop bookkeeping is difficult since you must save an Accountant’s Copy of your company file and send it to your ProAdvisor. Additionally, all versions of QuickBooks Desktop allow you to set up cost estimates for projects and then compare them to actual expenses.

Integrations

It’s designed to foster collaboration between multiple users, facilitating multi-user access to accounting data. Each user has their own login credentials, which can be customized to limit access to sensitive information. There’s also a feature that facilitates inviting your accountant to the platform, so they can have direct access to your data. 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. With QuickBooks Desktop, you can set recurring invoices, send payment reminders, send batch invoices, and track invoices, but you’ll miss out on many of the other modern, cloud-based automations that QBO provides. We recommend crunching the numbers to decide whether the online or desktop versions of QuickBooks are right for your specific business.

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. This is a tie since both QuickBooks Online and QuickBooks Desktop offer users the same support options. Whether you’re thinking about converting to QuickBooks Online or switching from QuickBooks Desktop to QuickBooks Online, your first step should be to take a long look at both applications. When you do, you’ll notice the difference immediately as QuickBooks Online offers a streamlined user interface, while QuickBooks Desktop relies on a flow-chart based interface. While both provide easy access to a variety of features and functions, only you can decide which one will work best for you. QuickBooks Online and QuickBooks Desktop are both excellent small business accounting software applications, both offering complete double-entry accounting as well as automatic processing of closing entries.

This requires the software to how to calculate straight line depreciation formula allow users transitioning from other bookkeeping software to import their chart of accounts (COA), vendors, customers, service items, and inventory items. Ideally, there will be a wizard to walk the user through the import process. 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. QuickBooks Online is easier to set up because it’s a cloud-based platform that doesn’t require installation. Also, the guided setup helps new users easily and effectively set up their company information, connect their bank accounts, create customers and vendors, etc. 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.

When is QuickBooks Desktop better than QuickBooks Online?

The software offers comprehensive features, unique touches (such as lead management and sales orders), industry-specific versions of the software, and the potential to be more secure. 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 Desktop offers the same support options found in QuickBooks Online including video tutorials, on-demand webinars, and various training options. Both applications also include an easy setup process, so you can be up and running in little time. You can download a 30-day trial version of QuickBooks Desktop Enterprise only—both the Premier Plus and linear regression Pro Plus plans come with a 60-day money-back guarantee, but no free trial.

All QuickBooks Desktop Pro, Desktop Premiere, Mac, and Desktop Enhanced Payroll products, excluding QuickBooks Desktop Enterprise, will no longer be available to new users after September 30, 2024. Existing QuickBooks Desktop Pro, Premier, Mac, or Enhanced Payroll users will not be impacted. Security updates and product updates will still be released for all users who purchase a QuickBooks Desktop Plus or QuickBooks Desktop Payroll subscription before the cutoff date.

However, QuickBooks Online offers over 750 integrations to QuickBooks Pro’s 260+ integrations. 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. MarketWatch Guides may receive compensation from companies that appear on this page. The compensation may impact how, where and in what order products appear, but it does not influence the recommendations the editorial team provides.

This includes the availability of integrations for payroll, time tracking, and receiving e-payments. We also evaluated whether an electronic bill pay integration was available. 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 2020 QuickBooks Online account for as little as $45 per month plus $5 per employee.