QuickBooks Online or QuickBooks Desktop: Which One is Best for My Small Business?

QuickBooks Online and QuickBooks Desktop…there’s a difference? YES! Both have their special features, as well as, the drawbacks. Take a look at each below to help you decide which would be the best to use for your small business!

When the founder of our firm, AdminBooks, started her business in 2003, she exclusively used QuickBooks Desktop for her clients and her own firm. Back in 2011 Intuit, the makers of QuickBooks, asked her why she was not using the online version. She replied, “Because online is not as robust as the desktop version!” 

Then, in 2014, Renee and her firm were struggling to get real time financials with the desktop version. Books were never current, always a month behind, or more. Also, the team could not collaborate efficiently due to the limitation of access to the desktop files. It was then that they decided to move all their client’s books to QuickBooks Online. 

Just because they moved to the cloud, is this the right option for your small business? It may not be. There are pros and cons to both the online and desktop versions. 

QuickBooks is subscription-based accounting software designed to meet the needs of most small to mid-sized businesses. It’s available in Online (cloud-based) and Desktop (locally installed) versions.

QuickBooks Desktop has been an industry leader for decades, but, over the years, QuickBooks Online has become a game-changer.

Both versions share many robust features, but they also have some distinct differences. To decide which is best for your company, it’s important to understand the features and drawbacks of each.

QuickBooks Online Features:

• Cloud-based software
• Simple, easy-to-use design
• More time-saving automations/integrations
• Scalable and easy to share with your accountant

QuickBooks Desktop Features:

• Locally installed software
• More robust reporting
• Industry-specific options
• Best for more complex accounting
• More comprehensive inventory functions

QuickBooks Online Drawbacks:

• Unable to revert to previous versions
• Can be pricey for higher tiers, and adding third-party apps
• QBO payroll does not support more complex deductions, such as union dues

QuickBooks Desktop Drawbacks:

• Subscription fee paid PER user
• Infrequent updates
• Limited remote access
• More complex and difficult to learn

While it might benefit a few select companies to use QuickBooks Desktop, such as contractors or companies using heavy inventory functions or complex third-party apps, the vast majority of small to medium-sized businesses will find QuickBooks Online robust enough to handle all their accounting needs, much easier to use than its desktop predecessor, and more convenient with simple remote access.

Be aware that QuickBooks Online usually has a promotion to discount the monthly subscription fee 50% for 3 months, which is a great deal as you are testing out the product.   

Here are some links that might be helpful in your decision making:

QuickBooks Online vs Desktop Comparison: https://quickbooks.intuit.com/online/move-to-online/#compare

QuickBooks Desktop Pricing: https://quickbooks.intuit.com/desktop/

QuickBooks Online Pricing: https://quickbooks.intuit.com/pricing/

QuickBooks Desktop for Mac: https://quickbooks.intuit.com/desktop/mac/

QuickBooks Online 30 Day Free Trial

If you think you are ready to switch from desktop to online or perhaps you just want to set up a new file using QuickBooks Online and/or training on how to utilize QuickBooks Online, contact our office to schedule a time to get acquainted: https://www.adminbooks.com/get-acquainted.