The two versions are independent of each other, which means the data you enter on Desktop doesn’t sync to the Online version and vice-versa. Hosting services can provide remote access to Desktop versions at additional cost. Beyond simply implementing QuickBooks, FinOptimal offers Managed Accounting Services to further support your growth.

However, a major pitfall is that previous QBO files cannot be restored like with QBDT files. One workaround for this is to purchase a subscription to your own backup and restore software. Because QBDT is a local install on your computer, you can access your file at any time. If the internet goes out, you’re still able to view, edit, and otherwise work on your books.

QuickBooks Online's mobile app lets you create invoices, track expenses, and view reports, making it a powerful tool for managing finances on the go. It may not offer the same level of customization as the desktop version. QuickBooks Desktop's mobile quickbooks online versus desktop 2020 app lets you access key data but primarily complements the desktop software. Explore our resources on accounting automation for more on mobile accounting solutions. For businesses currently using QuickBooks Desktop, it’s essential to consider your next steps.

How the Software Stacks Up

• QuickBooks provides custom reporting capabilities, allowing you to generate key financial reports such as profit & loss statements, balance sheets, and cash flow statements.
• The mobile app for Online is robust, and Desktop’s mobile app is so limited, that it essentially functions as a receipt uploader.
• While this might seem limiting, it can offer more control over your data, especially with unreliable internet access.
• While it offers project management tools, it doesn't have the same level of customization as the desktop version, according to Fit Small Business.
• It’s stored locally on your computer or network, allowing you to manage backups yourself.
• QuickBooks offers robust invoicing and billing features that enable users to create professional-looking invoices, track payments, and send reminders.

The simplicity, lower initial costs, and lack of IT requirements make it accessible. The ability to compare estimated versus actual costs helps maintain profitability on projects. Multi-user environments need server configuration and proper networking, increasing IT complexity and cost. This makes the cost difference between Online and Desktop smaller than in previous years. With SLC Bookkeeping, you get expert financial support at a fraction of the cost—without sacrificing quality or control.

QuickBooks Online vs. Desktop: Choosing the Right Software

We can help you assess your current workflows and future goals to ensure you choose the version that aligns with your long-term vision. If you're interested in partnering with us, check out our Partnership Program. We're also always looking for talented individuals to join our team; browse open positions on our Careers page. Because it's cloud-based, you can access your financials from anywhere with an internet connection, on any device—laptop, tablet, or phone. This makes real-time collaboration easy, especially beneficial for teams working remotely or businesses with multiple locations. QuickBooks Online is generally considered the more user-friendly option, a good fit for business owners without a deep accounting background.

QuickBooks Desktop vs. Online: At a Glance

FinOptimal can help you identify areas ripe for automation within your existing QuickBooks Desktop setup, ensuring you get the most out of your software investment. QuickBooks Online is generally considered more user-friendly and easier to learn, making it suitable for users with less accounting experience. If you're new to accounting software, factor in the time investment for training. It’s stored locally on your computer or network, allowing you to manage backups yourself. This offers a sense of control that some businesses prefer, especially those with strict data handling policies.

Features Comparison: Quickbooks Online vs QuickBooks Desktop Enterprise

This version is ideal for larger businesses needing detailed job costing, inventory management, or industry-specific reports. This in-depth functionality makes it popular in manufacturing or construction (source). While the QuickBooks Desktop version is robust, users can even convert paper invoices into digital files, simplifying data import. Both QuickBooks Online and Desktop offer industry-specific versions or can be customized with add-ons.

Why Leasing QuickBooks with Cloud Hosting Is a Smarter Move for Accounting Firms?

If you need help with the initial setup of your QBO file, you can hire a professional bookkeeper through the ProAdvisor directory. Intuit often offers discounts and incentives for purchasing it for set blocks of time, though for the purposes of this article, I’m only covering its full regular price. Both QuickBooks Desktop and QuickBooks Online support small business bookkeeping, but the manner in which each product does so differs. Conversely, many classic QuickBooks Desktop tools are not available in the online version. Should you use the desktop application or web browser version of QuickBooks? QuickBooks Online is user-friendly, but it requires some prior accounting knowledge to get the most out of it.

QuickBooks Desktop generally offers more robust inventory management features than QuickBooks Online. If you have complex inventory needs, Desktop's advanced tools will likely be a better fit. However, if your inventory needs are relatively simple, QuickBooks Online might suffice. Another advantage of QBO is its automatic updates, ensuring that users always have access to the latest features and security patches without any manual effort (Tipalti). This enhances user experience and contributes to overall efficiency in managing financial processes.

Whether you need assistance with selection, migration, or integration, our experts at Simpliigence are here to support you every step of the way. Do you value the ability to work from anywhere, appreciate integrated apps (like QuickBooks Payroll), and enjoy the convenience of automatic updates that QuickBooks Online provides? If so, switching is worth considering, especially if you use a remote accountant. With a QuickBooks Online account, updates happen automatically, so you always have the latest version. On the other hand, Desktop needs manual updates, so you may not have the most recent version if you fall behind.

• There are many cases where it’s to your benefit to learn how to approach and resolve a task.
• However, as business.com explains, the key differences lie in the specific features.
• If you prefer to have a dedicated expert manage your books, QuickBooks Live Bookkeeping offers virtual, full-service bookkeeping.
• Sometimes the customer list has to be cleaned up in order to make sure that a quickbooks online account is solid.
• Forbes Advisor highlights that Desktop is often preferred by businesses with established accounting processes.
• This facilitates real-time collaboration, which is especially helpful for remote teams or businesses with multiple locations.

It has less of a learning curve than QuickBooks Desktop and comes with a much more simplified dashboard that's easy to navigate. Some accountants dislike QuickBooks Online's limited functionality, limited report customization, and dependency on the internet. It's basically a chatbot that lives inside the walls of your QuickBooks instance. This may be less of a concern for those with a whole machine to dedicate to accounting, but that's probably not the case for the average user. And let's not forget offline accessibility for the times your ISP decides to ruin your Monday.

Making the Right Choice for Your Business

Picking the right QuickBooks version—Online or Desktop—can feel overwhelming. It all comes down to understanding your business needs and how each version can support them. This section breaks down the key factors to consider so you can make the best choice for your business. QuickBooks Desktop offers extensive customization, this can also make it more complex to set up and manage.

With QuickBooks Online, your monthly fee covers everything, including software updates, customer support, and data backups. With QuickBooks Desktop, you might have extra costs for support, upgrades, and even hardware maintenance. Factor in potential IT costs if you're managing the Desktop version yourself.

Consider your comfort level with accounting software and the specific needs of your business when evaluating the benefits of Desktop's extensions. For instance, if you need industry-specific features, you might find a Desktop extension that perfectly addresses those requirements. If you prioritize flexibility and a wide range of integrations, QuickBooks Online might be more suitable.

The QuickBooks Desktop mobile app, while limited to capturing expense receipts and tracking business mileage, serves specific needs such as barcode scanning for inventory management. Both QuickBooks Desktop and QuickBooks Online aim to cover the core accounting needs of a business, like tracking income and expenses, sending invoices, and reconciling bank accounts. QuickBooks Online shines regarding collaboration, as multiple users can use it simultaneously, which is helpful for teams or if you work with an outside accountant.

However, with any luck this can be resolved fairly quickly and with minimal frustration. Receipt management in QuickBooks Desktop requires more manual attention, requiring you to upload, sort, match, and edit receipts on your own. By using optical character recognition (OCR), details from your receipts are scanned and recorded directly into relevant transactions. QuickBooks Online simplifies both the receipt collection and organization process by allowing you to easily capture and upload a photo or document into your QuickBooks file.