Update: This information is specific to QuickBooks Desktop 2020 Show
Many business owners are familiar with Intuit QuickBooks, as it’s one of the leading accounting software programs for managing payroll, operations, accounts receivable, and numerous other financial functions. Despite the platform’s ubiquity, however, many business owners remain uncertain about the differences between QuickBooks Desktop and QuickBooks Online. Here, we’ll detail everything you should know about the two versions, including their core functions, pricing tiers, hosting location, and extra features. What is QuickBooks?QuickBooks is one of the best-known and most widely used accounting software programs on the market, in part due to its vast capacity for handling income and expenses, invoicing and payments, tax deductions, and more for businesses of all sizes – even self-employed people. Its prominence also stems from its inclusion of tools its competitors lack, such as integrated advanced time tracking. There are two main versions of QuickBooks – QuickBooks Desktop and QuickBooks Online – and there are many differences between them. In particular, the QuickBooks Desktop platform, which is installed locally or hosted remotely, has vastly different functions than the QuickBooks Online cloud computing version, which is fully remote. QuickBooks Desktop vs. Online: The similaritiesDespite those differences, QuickBooks Desktop and QuickBooks Online also have plenty of overlap. Here’s a look at how these two QuickBooks accounting software options stack up. Essential core functionsQuickBooks Desktop and QuickBooks Online offer similar essential functions, including the following:
Both QuickBooks Desktop and QuickBooks Online are especially well regarded for these capabilities:
Multiple tiers available for eachBoth QuickBooks Desktop and QuickBooks Online offer multiple service tiers that cater to different business needs, such as the number of employees who need to access the software. We’ll get into those details later on. QuickBooks Desktop vs. Online: The differencesHere are some of the key differences between QuickBooks Desktop and QuickBooks Online: FeaturesThe largest differences between QuickBooks Desktop and QuickBooks Online are found in their features. The online version has several top-notch, modern features that QuickBooks Desktop doesn’t. Here are some of the features that are exclusive to QuickBooks Online:
However, many classic QuickBooks Desktop tools can’t be found in the online version. These Desktop-only tools fit neatly into five categories:
Although only QuickBooks Desktop offers these features, QuickBooks Online integrates with many third-party apps that offer them too. However, these apps will cost you extra. Additionally, not all QuickBooks Desktop tiers have all of these features. HostingOne of the key differences between QuickBooks Desktop and QuickBooks Online is its hosting. QuickBooks Desktop is hosted locally, while QuickBooks Online is hosted in the cloud. This means that QuickBooks Desktop users are limited to one hosting provider – the computer on which the software is installed – or just a few licensed computers. QuickBooks Online can be accessed from any internet-connected device, including a mobile device with the QuickBooks app installed, with a valid username and password. Because QuickBooks Online is cloud-based, it is a great option for those who need QuickBooks access while not in the office. QuickBooks Desktop is limited to the number of installations included in your chosen service tier, so you may not be able to access the service if you can’t get to that specific device with the software installed. One-time vs. monthly purchasesQuickBooks Desktop is a yearly subscription or one-time purchase, with the exception of the hosted Enterprise solutions, which are billed monthly. You won’t need to renew your plan or make additional purchases unless you’re looking to add new, expanded services or an additional device to your current plan. QuickBooks Online, on the other hand, is a monthly subscription. How much you’ll pay for each service depends on the service tier you buy. QuickBooks Desktop vs. Online: Service tiers and pricingYou can choose from multiple service tiers for both QuickBooks Desktop and QuickBooks Online. [Check out our comprehensive review of QuickBooks Online.] QuickBooks Desktop service tiers and pricingQuickBooks Desktop Pro and Pro Plus
QuickBooks Desktop Premier and Premier Plus
QuickBooks Desktop Enterprise
QuickBooks Online service tiers and pricingSelf-Employed
Simple Start
Essentials
Plus
Advanced
Frequently asked questions about QuickBooks Desktop vs. OnlineDoes QuickBooks Online sync with your QuickBooks Desktop version?No. QuickBooks Desktop and QuickBooks Online are entirely separate platforms that do not sync with each other. However, in addition to its mobile app, QuickBooks Online has a desktop app. So, any info you enter into the QuickBooks Online desktop app will sync with your cloud-based QuickBooks platform if your computer is connected to the internet. What’s the difference between the QuickBooks Online and QuickBooks Desktop integration?Both QuickBooks Online and QuickBooks Desktop can integrate with over 650 cloud-based apps. QuickBooks Online integrates with many other software platforms, such as PayPal and Square, but these platforms do not always have desktop versions. That’s why QuickBooks maintains a list of apps for QuickBooks Desktop that you can use to determine which desktop apps you can pair with your Desktop software. Can you switch from QuickBooks Desktop to QuickBooks Online?Yes, you can switch from QuickBooks Desktop to QuickBooks Online. Your data will be transferred from QuickBooks Desktop to QuickBooks Online, but not all of the data will copy seamlessly. Visit the QuickBooks guide to switching from Desktop to Online to see precisely which data points do not convert. It’s important to note that QuickBooks Desktop and QuickBooks Online are two separate products, and data in the two versions do not automatically sync. A company should work with either QuickBooks Desktop or QuickBooks Online to avoid data discrepancies. Can you buy QuickBooks Enterprise without a subscription?No. All QuickBooks Enterprise plans are available only via subscriptions instead of one-time payments. Your subscription will be either monthly or yearly depending on your plan. Locally installed plans are paid yearly, whereas hosted plans are paid monthly. Visit the QuickBooks Enterprise pricing page to learn more about how your number of users and your choice between local installation and hosting will affect your price. How is QuickBooks Enterprise with hosting fixing business challenges?QuickBooks Enterprise with hosting addresses several challenges of larger businesses, including the following:
QuickBooks Enterprise addresses all of these concerns because it is a large business solution that can be accessed anywhere, requires no physical infrastructure for data storage, and offers extensive customer support. How often do you have to upgrade QuickBooks Desktop?While there is no requirement for how often you must upgrade QuickBooks Desktop, it may be wise to do so every year. This way, your platform will include all of the newest features, security upgrades, and more. However, if you choose to add the payroll extension (which costs extra) to your QuickBooks Desktop purchase, you will be required to upgrade QuickBooks Desktop every three years. QuickBooks Desktop vs. Online: Which is best for your business model?There’s no right or wrong answer to this question. Every business has its own needs and demands that make one accounting software version or the other a better fit. That said, you can consider the following general guidelines, which are somewhat flexible when answering this question: QuickBooks Desktop may be better for:
QuickBooks Online may be better for:
While these loose guidelines for choosing between QuickBooks Desktop and QuickBooks Online may be helpful, you may instead want to prioritize the individual features available through a given tier, regardless of whether it’s cloud-based or locally installed. And if you’re still uncertain whether QuickBooks Desktop or QuickBooks Online is the better choice for your business, you can always read our review of QuickBooks Online 2022 to learn even more. What are 3 features of the QuickBooks Plus subscription?QuickBooks Online Plus helps you manage and view all parts of your business, all in one place. Easily track labor costs, payroll, and expenses with job costing. See project profitability with clear dashboards and reports. You can even manage your inventory and stock.
Which 4 key features are only included in QuickBooks Online Advanced?QBO Advanced includes everything in QBO Plus, including the ability to track by class, along with exclusive features such as reporting powered by Fathom, batch invoice import and custom user permissions.
What is the difference between QuickBooks Online and QuickBooks Online Plus?Other than the addition of inventory management and project profitability add-ons in QuickBooks Plus, one of the main differences from QuickBooks Essentials is the number of reports you can run for your business. Essentials gives you 85, while Plus gives you 124.
Which products and services type is only available in QuickBooks Online Plus and Advanced subscriptions levels?Inventory items are products that the business sells, tracking the quantities on hand and the cost to purchase the items. These are only available in the Plus and Advanced versions of QBO.
|