For additional options, head to our guide on the leading QuickBooks Online alternatives. We have an extensive history of reviewing QuickBooks products, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different QuickBooks products compare with each other and how they work in real-world scenarios.

  • Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features.
  • In this guide, we’ll help you understand what each version is capable of, what type of business is best for each version of QuickBooks, and the main differences between these products.
  • The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
  • QuickBooks Online excels at security due to automatic data backups, encryption, and regular security audits.

Product support can be accessed directly from within the application, where you can ask a question or connect to support personnel. But aside from cloud access, there are other differences between the two applications that we’ll talk about next. Small to midsize businesses that want a desktop solution or need advanced inventory and industry-specific features.

How does QuickBooks Cloud Hosting Work?

The online version of QuickBooks is much easier to use than the desktop version. While QuickBooks Online and QuickBooks Desktop offer contact management, only QuickBooks Desktop allows you to manage and track leads as well as contacts. It’s hard to say which software is cheaper because there are so many variables. But there are some general guidelines to know which version might be the one for your business (and your budget). Our complete QuickBooks Online vs. Desktop comparison covers key differences, pricing, features, and usability, so you can easily decide whether QuickBooks Online or QuickBooks Desktop is right for your business. Comparatively, with locally installed QuickBooks Desktop, you remain confined to a single system on which QuickBooks is installed.

  • On the left you can see the market penetration of both products in the small business segment.
  • 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.
  • You can migrate your business and payroll data to QuickBooks Online and keep a copy of the original file for your records.
  • Head to our detailed QuickBooks Payroll review to see if it fits the bill.
  • QuickBooks Desktop requires a one-time upfront payment, making it more cost-effective in the long run for users who don’t require regular upgrades.

Features include mileage tracking, basic reporting, income and expense tracking, capture and organize receipts and estimation of quarterly taxes. Offers four plans to accommodate a range of businesses accrued interest journal entry with different needs; each plan limits the number of users, though. In other words, if you want to save time on day-to-day accounting, Sage Intacct offers more value than QuickBooks Desktop.

Assisted Bookkeeping (Winner: QuickBooks Online)

Below you’ll find a QuickBooks Online vs. Desktop comparison chart showing the main differences between the platforms. Because QuickBooks is as diverse as the companies that use it, there are numerous plans to choose from. Both QBO and Desktop offer quality invoicing features, although there are some differences. For example, QBO lets you send invoices from your phone, while Enterprise allows for batch invoicing, so you can send numerous invoices at once.

When working with the Desktop version, it’s downloaded right to your computer. This means the data operates as fast as your computer, all without needing to worry about a connection issue. You must pay an additional fee for every user who wants to access the account simultaneously, whereas Online lets multiple users access the account at the same time.

See why businesses are switching from Desktop to QuickBooks Online

QuickBooks Enterprise does sync with the cloud, but is accessed from your computer’s desktop and is available offline or behind a firewall. The product also available for up to 30 users, so is a good choice for a larger business where more employees need access to the accounting system. Every business is unique, and there may be instances where QuickBooks Desktop may be a better fit. For example, it may be more suitable for businesses with complex inventory management needs or those wanting offline access to their financial data. However, QuickBooks Online is the better choice for most companies, especially those with remote accountants and multiple employees.

Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. While there are significant differences between QuickBooks Desktop and QuickBooks Online, both applications offer solid accounting capability for small businesses. And while QuickBooks Desktop comes out on top in this comparison, only you can decide which one is best for your business.

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QuickBooks Online (QBO) is the cloud-based, online version of accounting software provided through a monthly subscription pricing plan. QuickBooks Online offers upgrade options and integrates with many add-on third-party apps to increase functionality. The assisted migration offer is eligible to Desktop customers that are migrating their data and setting up QuickBooks Online. Personalized setup is limited to a 1-hour session with a customer success product expert. Intuit reserves the right to limit the number of sessions and the length and scope of each session. Assisted migration results may vary based on business complexity and file size.

What is the Difference between QuickBooks Online and QuickBooks Desktop?

No need to worry if you skip one; you can always go back and add it at a later date. Both QuickBooks Online and QuickBooks Desktop applications offer a good selection of features, though QuickBooks Desktop features tend to be more comprehensive. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online.

While the dashboard is a bit cluttered, you can easily customize it to only display the information you wish. Those interested in trying out QuickBooks Online can access a free 30-day demo with sample data that allows you to easily explore system features and functions without spending a lot of time entering data. While people may assume that QuickBooks Online is simply the cloud version of QuickBooks Desktop, in reality, the two products are very different. For an extra $50, sign up for a one-time live Bookkeeping setup with any of its plans. We’ll compare QuickBooks Online vs. Desktop and highlight the differences between each version plus which one is most suitable for collaborating on the go, and which is faster and offers more advanced features. You must purchase additional licenses if you want to access it on multiple computers.