Choosing the right accounting software is essential for the smooth financial operation of any business. Intuit offers two popular options: QuickBooks Desktop and QuickBooks Online. While both are powerful tools, they cater to different needs. Let’s explore their key differences to help you decide which is right for your business.
QuickBooks Desktop vs QuickBooks Online
As we prepare for the discontinuation of some of QuickBooks Desktop products, we want to ensure you continue to have the best accounting tools for your business. You now have a choice between two powerful solutions: QuickBooks Desktop Enterprise and QuickBooks Online. Each offers unique benefits tailored to different business needs. Here is a quick guide to help you decide which option is right for you.
01 | Deployment and Accessibility
QuickBooks Desktop (QBD):
This is locally-installed software that operates on your desktop or server. You need to install and update it manually, and access is typically limited to the device on which it’s installed. Remote access is possible but requires third-party integrations.
QuickBooks Online (QBO):
QBO is cloud-based, making it accessible from any internet-enabled device. For example, smartphones and tablets. Updates are automatic, and multiple users can access it from anywhere, ensuring flexibility.
Winner: QuickBooks Online for accessibility and convenience.
02 | Features and Functionality
QBD Enterprise Edition:
Known for its robust, industry-specific features, QBD offers advanced inventory management, job costing, and customizable reporting. It’s ideal for businesses requiring in-depth control
over complex financial tasks.
QBO:
QBO shines with its integration capabilities, real-time collaboration, and ease of use. While it doesn’t match QBD’s depth in advanced features, it supports small to medium-sized businesses well with invoicing, expense tracking, and basic inventory.
Winner: QBD for complex needs; QBO for general accounting.
03 | Scalability
QBD Enterprise Edition:
Designed for growing businesses, it supports up to 40 simultaneous users and offers advanced data capacity.
QBO:
Best suited for small to medium businesses. While it supports multiple users, its features may not scale as effectively for larger enterprises.
Winner: QuickBooks Desktop for enterprises; QuickBooks Online for smaller businesses.
04 | Cost
QBD Enterprise Edition:
Requires an annual subscription starting at $1,340/year for one user. Additional costs include hosting (if needed) and upgrade fees.
QBO:
Subscription-based, with plans ranging from $30 to $200/month depending on features. While cheaper upfront, costs can add up over time.
Winner: Depends on budget and length of use.
05 | Data Security
QBD:
Data is stored locally, which some businesses prefer for security. However, you are responsible for backups and disaster recovery.
QBO:
Intuit manages cloud backups and data security, using encryption and multi-factor authentication to protect information.
Winner QBO for managed security.
06 | Integrations and Add-ons
QBD:
Supports fewer third-party integrations compared to QBO. However, it offers strong native features to compensate.
QBO:
Integrates seamlessly with numerous third-party applications, making it more versatile for businesses that rely on additional tools.
Winner: QuickBooks Online for integration versatility.
Conclusion
The choice between QuickBooks Desktop vs. QuickBooks Online ultimately depends on your business size, complexity, and workflow. Choose QuickBooks Desktop Enterprise if your business needs advanced features like detailed inventory tracking or job costing, and you prefer local control. Opt for QuickBooks Online if you value accessibility, collaboration, and a more modern approach to accounting. Evaluate your specific requirements carefully, and consider starting with a free trial of QuickBooks Online or consulting Intuit for guidance on QuickBooks Desktop.
The Ray Group accountants can help you make the best choice for your business. From initial setup to personalized training, and detailed comparisons, we are here for you. Our goal is to provide you with the tools and support necessary for continued success.
You may also enjoy reading: 6 Tax-Free Investments to Consider for Your Retirement
