When comparing QuickBooks Online and QuickBooks Desktop, each version has its own advantages, helping specific businesses with certain financial management needs. 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 what is the difference between revenues and earnings database.
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. But local installation means more control over your data, who has access, and overall general security of your business information. While the two iterations are different in some aspects, they’re essentially the same product, and the differences between them aren’t as glaring as they are with other accounting software solutions.
Choose QuickBooks Desktop If…
Terms and conditions, features, support, pricing, and service options subject to change without notice. QuickBooks Desktop is more traditional accounting software that you download and install on your computer, while QuickBooks Online is cloud-based accounting software you access through the internet. 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. Both versions have mobile apps, but the app for the Desktop version primarily functions as a way to upload receipts, and the Online mobile app is robust in comparison.
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. Although Intuit has talked about adding sales orders to QuickBooks Online, this feature is only available with QuickBooks Desktop products at this time.
Number of users
- 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 can be accessed anywhere you have an internet connection, and because it’s web-based, you can work with your accountant in real time.
- Unless you’re an accountant, the learning curve will likely be a little higher for you than it would with QuickBooks Online.
- However, the QuickBooks Desktop app is a very pared-down version of the desktop and is poorly rated.
- For instance, if you have five members, you can purchase the Plus plan for only $90 monthly, whereas with Enterprise, you need to pay $427 monthly for five users.
QuickBooks Online offers a large selection of reports, but they aren’t industry-specific. Since QuickBooks Online is priced as a monthly subscription, it doesn’t require a contract and you can cancel your account at any time. Additionally, the desktop products are only available as annual subscriptions, making them a bigger commitment than QuickBooks Online. QuickBooks Desktop doesn’t offer the same multi-user accessibility, but it does have a more comprehensive assortment of features that provide an in-depth view of your accounting operations. QuickBooks Desktop offers more advanced inventory management features, job costing worksheets, sales orders, and highly customizable reports.
Mobile Accounting: QuickBooks Online Wins
The downsides are the lack of sales orders, lead management, and other complexities that loyal Desktop users may miss (such as customizable letter templates, a built-in calendar, and even spellcheck). These versions give business owners more features and reports geared toward their industry. QuickBooks Online offers over 80 reports depending on your plan, whereas QuickBooks Desktop Pro has over 130 reports. QuickBooks Desktop Premier and Quickbooks Desktop Enterprise have even more reports (especially if you opt for the industry-specific versions of these programs). QuickBooks Online and QuickBooks Desktop operate on true double-entry accounting principles and have both accrual and cash-basis accounting. Each offers a detailed chart of accounts, journal entries, bank reconciliation, accounts payable, accounts receivable, and the basic reports needed to run a company.
QuickBooks Online offers anywhere, anytime access to up to 25 people. Additionally, you can give access to two accounting firms and have unlimited users for the platform’s time tracking and reporting features. QuickBooks Online can be accessed anywhere you have an internet connection, and because it’s web-based, you can work with your accountant in real time. The QuickBooks mobile app is also available for free and lets you manage your account on the go. Although QuickBooks Online earned a perfect score and Enterprise took a slight hit in this criterion, we consider this a tie. Both allow you to create essential reports, including profit and loss (P&L), cash flow statements, and balance sheets.