QuickBooks Desktop is also a good fit for niche businesses such as nonprofit organizations, retailers, and general contractors looking for a more industry-specific solution. But aside from cloud access, there are other differences between the two applications that we’ll talk about next. Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Software providers also receive points based on other resources available, such as self-help articles and user communities. Finally, they are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the platform. The software must have enough reports that can be generated with a few clicks.
QuickBooks Online has been part of the Intuit accounting software family for a few decades now. Since QuickBooks Online is browser-based, not desktop-based, you can log on to your Quickbooks Online account from what is a hurdle rate any web-enabled device with a sturdy internet connection. Going completely cloud-based comes with marginally higher security risks. While QuickBooks Online does offer security features like multi-factor authorization and encrypted data storage, it’s accessible by anyone with employee login credentials and an internet connection. QuickBooks Desktop is an annual subscription, starting at $549.99 per year, which may be cost-prohibitive for small businesses or cash-strapped startups.
Online Plus and Payroll Core Bundle
Meanwhile, QuickBooks Desktop has two payroll options with prices that start at $50 per month plus $6 per employee. If you can file taxes confidently on your own, Enhanced Payroll might be suitable. If you want QuickBooks to file your taxes for you, then you must upgrade to QuickBooks Desktop Assisted Payroll. Check out our QuickBooks Desktop Payroll Enhanced vs Assisted comparison for more information. QuickBooks Online wins for pricing because it’s essentially more affordable than QuickBooks Enterprise. 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.
In addition to having more integrations, QuickBooks Online also has better integrations. QBO’s integrations cover more business needs and include multiple payment gateway options. One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, a mobile app is now working capital ratio available with the introduction of QuickBooks Desktop 2022.
Users can simply click on the Reports option to access reports in a variety of categories including Favorites, Business Overview, Expenses and Vendors, Employees, and Sales Tax reports, along with several others. All reports can be exported to Microsoft Excel for customizing, viewing on screen, printing, or emailing directly to recipients. Users can access features via the vertical menu to the left of the screen or by using the drop-down menu bar at the top, and the My Shortcuts option allows you to add a shortcut to frequently used features. If the default screen is too crowded for your taste, you can hide the vertical menu, only displaying it when you wish. You can easily access all QuickBooks Online features from the dashboard, where you’ll find a vertical menu bar to the left of the screen. While the dashboard is a bit cluttered, you can easily customize it to only display the information you wish.
Project Accounting: QuickBooks Desktop Wins
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.
Both QuickBooks Online and QuickBooks Desktop applications offer a good selection of features, though QuickBooks Desktop features tend to be more comprehensive. Cassie is a former deputy editor who collaborated with teams around the world while living in the beautiful hills of Kentucky. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager. Yes, you can, but the process is a bit tedious, as you need to export your files from QuickBooks Online to Desktop manually.
Accounting
If you have employees, you can add QuickBooks Payroll to your QuickBooks Online account for as little as $45 per month plus $5 per employee. are dividends considered assets QuickBooks Payroll allows you to pay your employees by checks or direct deposits, e-file and e-pay taxes, print and e-file W-2 Forms at year-end, and more. Head to our detailed QuickBooks Payroll review to see if it fits the bill. When you upgrade to Enterprise, QuickBooks Desktop’s most comprehensive plan, you’ll gain access to advanced inventory features, including barcode scanning and serial number tracking.
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- While the dashboard is a bit cluttered, you can easily customize it to only display the information you wish.
- Whereas one is completely online and cloud-based, the other operates locally on your computer.
- Using the data we gathered from this case study, we are able to compare QuickBooks Online and Desktop across several key categories, such as pricing, ease of use, general features, A/P, A/R, and banking.
- You can easily connect to any third-party app from within the application, saving you a ton of time in the process.
- But for most small-business owners in most industries, QuickBooks Online has better automation, better access, and a better price point.
Our partners cannot pay us to guarantee favorable reviews of their products or services. At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. For many small-business owners, most of the time, QuickBooks Online works better than QuickBooks Desktop. It’s more affordable, easier to share with your accountant or other financial stakeholders, and offers better invoicing than its locally installed counterpart.
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). 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. However, QuickBooks Desktop offers better reporting and supports more complex accounting. Four pricing plans for QuickBooks Online are available, ranging from $35 to $235/month (with an additional $50+/month for payroll).