QuickBooks is a widely known accounting software which is developed and designed by Inuit Inc. Although it is having various versions, the debate remains as which one is better – QuickBooks Online vs Desktop.
QuickBooks Online vs Desktop | An Introduction
QuickBooks Online vs Desktop is certainly the most heated debate among the accounting professionals to choose the best one.
There is a key point where you can totally differentiate between QuickBooks Online vs Desktop is of installation. The online version does not require any installation, while the Desktop version requires you to install the software.
The other difference is of inventory needs. Generally, the business related to products operated better with QuickBooks Desktop. On the contrary, QuickBooks Online is the first preference for service-based companies.
As you are a small business owner, you can go for QuickBooks Desktop rather than QuickBooks Online.
A fact to be known that 80% QuickBooks is certainly choosing Online version over Desktop version.
QuickBooks Online vs Desktop | Costs Compare
While buying any of the versions, the business owner sees the price tag – how much is their cost?
So, you should always consult the cost while buying any of the software.
Price of QuickBooks Online
You go for QuickBooks Online, then you have to pay monthly fees.
Price of QuickBooks Desktop
On the contrary, QuickBooks Desktop is priced at a larger one-time cost.
It’s better to make your route for QuickBooks Online as you will get the free trial for the first three months and then 50% discount on the cost.
QuickBooks Online vs Desktop | Main Differences
QB Desktop has come a long way back, QuickBooks Online is new in the market.
QuickBooks Online
Basically, people prefer more Desktop version than Online version. The main reason can be that the prior came into the market first and has made its name. Conversely, the latter has come into the market now and is still progressing.
QuickBooks Desktop
Desktop version has already placed the foundation stone of trust among QuickBooks users. With an addition to it, you should consider the cost, as QuickBooks Desktop is a one-time cost. But for Online version, you have to pay monthly.
The reasons for which QuickBooks Desktop is above QuickBooks Online is of below reasons:
- You can automatically make your own schedules & send transactions over to the concerned parties.
- We can attach your work- or business-related documents, images, your company’s signatures, and more importantly your transactions.
- You can surely make audit log review actions, and have a look into the changes which have taken over time.
- We can easily track location by class, as this provides you with the multiple location labels.
- This offers a new option of relabeling your customers with equivalent to seven labels.
- This enables the user to enable the night transactions sync.
- You can generate your own banking rules regarding dollar value, percentage, class, and location.
- In this, you have the option to add your own banks as per your desire.
- You will have an unlimited amount of time tracking with this QuickBooks version.
- The main difference is of unlimited reports you can generate as a user.
- You can witness all the delayed charges & delayed credits in the schedule future transactions.
- The tendency to create journal entries with multiple AR/AP lines is with QuickBooks Desktop.
- The option to generate multiple budgets per financial year is provided by QuickBooks Desktop.
- You can generate advanced management reports which will be presentation-ready.
QuickBooks Online vs Desktop | Consideration
QB Online
QuickBooks Online is mainly used for a service-based business. With the addition to it, they are away from generating or handling any complex invoicing requirements.
The main forte is that you can access QuickBooks Online from multiple devices. More than one person can have access to the software application, and get updates from the cloud.
- QuickBooks Online indeed gives the power to your bookkeeper or your other team to have access from anywhere in the world. You can surely set your password & ID for each individual, to whom you give access for your QuickBooks data.
- You can surely enter transactions while operating any of the following – mobile device, PC, or MAC. The main part is that this version does not require any software installation, therefore, you can access it from anywhere.
- The transactions are always in real-time for you. All of your team and you can get updates wherever you are accessing the software.
QuickBooks Desktop
If you are in the product-based industry, which needs complex inventory tracking & invoicing needs, then QuickBooks Desktop is your choice of product. This is mainly used by manufacturers, wholesalers & retailers.
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Consider QuickBooks Desktop for the following:
As it is related to inventory tracking, then you can easily manage your inventories and invoices related to it. The options provided by QuickBooks Desktop are FIFO & LIFO. These are available when you purchase the product with Advanced Inventory Add-on system. You can choose any method depending upon your inventory method.
A better feature of QuickBooks Desktop is batch invoicing. This will provide you to do batch invoicing; when you have to send a bill to multiple clients, then this feature helps.
Whichever industry you are operating in, this version will guide you. Whether you are operating in the following industries:
- General Business
- Contractor
- Manufacturing and Wholesale
- Professional Services
- Retail
A point to note here that QuickBooks Online lacks industry-specific features.
QuickBooks Online vs Desktop | More Differences
Features of QuickBooks Online not found in QuickBooks Desktop
Are there any features which QuickBooks Online has and not QuickBooks Desktop? Yes. There are many features; let us discuss it one-by-one with you.
Cloud Backup & Protection
Being an online platform, the protection and backup provided by the software is outstanding. All your data is saved on the Inuit’s server; without any worry of getting stolen.
Anywhere Access of Data
You can access QuickBooks Online from anywhere from a PC & MAC, as per your choice. As everything is stored on the cloud, you must have an internet connection & a user ID and password.
Always Get Free Technical Support
You can fetch as much as support you need for QuickBooks Online without any additional charges. If you go through QuickBooks Desktop, you have to opt for the plan or pay whenever you take service.
Get the Latest QuickBooks Version
When you have QuickBooks Online, then Inuit gives you access to the latest version of QuickBooks on an immediate basis. So, you don’t require any special treatment to upgrade the software. Just simply log in your account to gain access into the newest version of QuickBooks Online.
Sample Company File Test Drive
When you have QuickBooks Online, you will access to various QuickBooks company file. You can go through the company file and see which transaction has occurred when with time.
Inventory Management
The main difference is that QuickBooks Online provides only the FIFO method. If you want both – FIFO & LIFO – then you have to make your path with QuickBooks Desktop.
Features Offered in QuickBooks Desktop and Not in QuickBooks Online
There are features in QuickBooks Desktop which are not available in QuickBooks Online.
Software Setup
In the first place, you have to download QuickBooks Desktop to launch it on your computer system. It simply means, when you are not on your computer system, you cannot access the program.
Store Your Own Data
As this is not backed automatically like QuickBooks Online, you have to make your own backup manually. You have another way also, by choosing a higher version of QuickBooks Online, but it comes with a higher price.
No Cloud Storage
Whether you have a PC or MAC, you can only access QuickBooks Desktop when you sit on your computer and not from anywhere. This QuickBooks version lacks this feature of cloud storage.
Technical Assistance Fees
The first 30 days after the installation of the software application is surely free. As 30 days expires, then you have paid a dedicated fee to again get QuickBooks Desktop support from the Inuit’s QuickBooks Team.
Paid Upgrades
QuickBooks Desktop requires that you purchase the latest version of the software to gain access to new product features. Pricing will vary based on what version of QuickBooks Desktop you have, generally starting at $299.95.
Sample Company Files
Within QuickBooks Desktop, there are several sample company files for multiple industries at the same time. Like QuickBooks Online, you can practice entering transactions without using your own company file.
Multiple Inventory Tracking Options
Unlike QuickBooks Online, QuickBooks Desktop offers two options for tracking inventory: the average cost method or the FIFO method. The FIFO method is available when you purchase the Advanced Inventory add-on module.
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Our QuickBooks Support
To sum up this, our team is working for you. You can call our QuickBooks team and get to know that which is best suited QuickBooks version for you – QuickBooks Online vs Desktop. You can contact us on your QuickBooks Support Team.