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When it comes to personal finance, there are many types of software people use. QuickBooks Online is a popular accounting and billing service that’s used by small businesses and freelancers in the United States. Desktop applications offer more features than online services, but can be slower or less reliable sometimes due to their complexity.
In 2021, the “quickbooks desktop vs online” is a question that many small business owners will be asking. The answer to this question will depend on what your company needs and how much you are willing to spend. Read more in detail here: quickbooks desktop vs online 2021.
QuickBooks Online differs from QuickBooks Desktop in that it can be accessed from any computer or mobile device with an internet connection, and it’s simple to communicate data with your accountant. QuickBooks Desktop requires installation on your computer and provides quicker navigation and data entry, but it has restricted sharing capabilities.
QuickBooks Online is ideal for businesses that need to offer numerous personnel, including an independent accountant, access to the platform. QuickBooks Desktop is ideal for experienced bookkeepers in specialized sectors who spend the majority of their time in an office and want a fast tool that is not reliant on internet connectivity. On our list of the best small company accounting software, both QuickBooks Online and QuickBooks Desktop make the cut. Our best desktop accounting application is QuickBooks Desktop, and our best overall small company accounting software is QuickBooks Online.
There are nine significant differences between QuickBooks Online and QuickBooks Desktop.
- The main difference between QuickBooks Online and QuickBooks Desktop is that QuickBooks Online is cloud-based and can be accessed from any computer or network, while QuickBooks Desktop must be installed on a single computer or network.
- Users may access QuickBooks Online at the same time: QuickBooks Online comes with a specific number of users included in the subscription fee, and all users can use the application at the same time. Multiple users can be set up in QuickBooks Desktop, but only one user may use the application at a time unless you buy extra licenses.
- Mobile app: QuickBooks Online includes a mobile app that can do all of the tasks you’ll need to keep track of your finances. The only mobile app for Desktop is for capturing receipts, and it needs a Desktop Plus membership.
- Future development: Over the last several years, QuickBooks Online has seen a tremendous amount of growth in terms of new features and upgrades. This isn’t to imply that QuickBooks Desktop will go away any time soon, but it is no longer the company’s primary priority.
- QuickBooks Online is priced as a monthly subscription with a predetermined number of users. QuickBooks Desktop is available as a one-time charge that varies depending on the number of users, or as a yearly subscription with extra features. For further information, see the price section below.
- Sharing with your tax professional: You may offer an external accountant full access to your QuickBooks Online firm without it counting against your user limit. You must build an Accountant’s Copy in QuickBooks Desktop, which must then be transmitted to your accountant. Your accountant’s modifications must then be loaded into your QuickBooks Desktop business file.
- Industry-specific software: There are no industry-specific versions of QuickBooks Online. Construction, retail, professional services, manufacturing and wholesale, and nonprofit enterprises all have QuickBooks Desktop versions with industry-specific reporting and processes.
- Customer support: All QuickBooks Online subscriptions include with unlimited customer support. Unless you buy QuickBooks Desktop as an annual subscription, customer assistance is not included.
- Bookkeeping support: QuickBooks Live for QuickBooks Online accounts provides bookkeeping assistance and guidance, or you may chat with an independent QuickBooks Online ProAdvisor. An independent QuickBooks Desktop ProAdvisor is your sole choice for QuickBooks Desktop.
When Should QuickBooks Online Be Used?
If you need to provide many people access to your records, such as an independent accountant or a tax expert, QuickBooks Online is a good option. It’s also the best option if you require mobile apps for remote access. It also has additional time-saving automation tools and interfaces with third-party payment processors, enabling your clients to pay their bills straight online. However, cloud-based accounting isn’t QuickBooks Online’s sole advantage. It’s robust software that can help businesses in a broad range of sectors. Our selection of the best church accounting software and best nonprofit accounting software includes QuickBooks Online.
Go to the QuickBooks Online website.
When Should QuickBooks Desktop Be Used?
Because its capabilities are typically more developed than those of QuickBooks Online, QuickBooks Desktop is ideal for handling sophisticated accounting demands. QuickBooks Desktop’s industry-specific versions shine, with bespoke processes and reporting suited to various businesses. If you own a merchant, manufacturer, wholesaler, professional service provider, construction contractor, or charity, you should seriously consider QuickBooks Desktop. QuickBooks Desktop is our best multicompany accounting software overall, as well as our best accounting software for farmers who deal with an independent bookkeeper or tax preparer.
QuickBooks Desktop may be found here.
At a Glance: QuickBooks Online vs. QuickBooks Desktop
We’ll offer you a tailored product match once you answer a few questions about your company.
Pricing for QuickBooks Online vs. QuickBooks Desktop
The price structures for QuickBooks Online and QuickBooks Desktop are different. There are four price levels available for QuickBooks Online, each with a specified number of users. QuickBooks Desktop is offered as a standalone program or as an annual subscription with a per-user fee.
Versions of QuickBooks Online Pricing and Features
Versions of QuickBooks Desktop Pricing and Features
Takeaway: If you have several users and require limitless customer assistance, QuickBooks Online is a superior option. It’s perfect for companies who can’t afford pricey licenses or yearly subscriptions. For businesses with just one user, QuickBooks Desktop might be a reasonable investment.
Features of QuickBooks Online vs. QuickBooks Desktop
QuickBooks in any edition will aid in the efficient and successful management of your company. While both Online and Desktop include the majority of the main functionality you’d anticipate, there are a few notable distinctions.
The following features are not accessible in QuickBooks Desktop but are available in QuickBooks Online:
- Automatically compute sales tax rate: QuickBooks Online will automatically determine the sales tax rate to apply to transactions based on any client address in the United States.
- Several users: Except for Simple Start, all editions of QuickBooks Online come with multiple users who may view the business file at the same time. All QuickBooks Online enterprises may invite at least one external accountant to share their books in addition to the indicated number of users. Each concurrent user of QuickBooks Desktop needs a separate license.
- QuickBooks Online has a mobile app that enables users to complete practically any accounting task while on the road. Unless you buy the Plus membership, QuickBooks Desktop does not have a mobile app, which is restricted to taking and uploading receipts.
- QuickBooks Online data is accessible from any PC, Mac, or mobile device with an internet connection, 24 hours a day, seven days a week.
- Automatic online backup and security: QuickBooks Online data is backed up and protected automatically. Because your data is not saved on your computer, you don’t have to be concerned if it is stolen or malfunctions.
Check out our QuickBooks Online review for a detailed look at the features of the online edition.
The following features are available in QuickBooks Desktop that are not available in QuickBooks Online:
- Infinite companies: With a single QuickBooks Desktop license, you can keep track of the books for an unlimited number of businesses.
- Additional inventory options: QuickBooks Desktop offers more comprehensive inventory monitoring and pricing capabilities. For example, you may use an inventory assembly to factor in the price of materials, existing inventory, and labor when calculating the cost of freshly created inventory.
- Additional report export options: QuickBooks Desktop can edit an Excel spreadsheet that has already been created. If you run analysis in Excel after exporting a report, this is quite useful. You don’t have to re-analyze your data every month. Directly from QuickBooks Desktop, update the spreadsheet numbers.
- Construction, manufacturing and wholesale, professional services, retail, and nonprofit are among the categories for which QuickBooks Desktop provides industry-specific Premier versions.
To discover more, read our in-depth QuickBooks Desktop Premier review.
Takeaway: While both QuickBooks Online and QuickBooks Desktop have a robust set of tools, QuickBooks Desktop does not have a mobile app. Another significant benefit of QuickBooks Online is its ability to calculate sales tax depending on the customer’s address. QuickBooks Desktop may be the best option for firms in the five sectors with customized versions.
Ease of Use in QuickBooks Online vs. QuickBooks Desktop
Because QuickBooks Online is cloud-based and does not need installation, it easily wins when it comes to simplicity of use. QuickBooks Desktop, on the other hand, can be downloaded and installed on a single computer in a matter of minutes. Installing QuickBooks Desktop on multiple computers is a bit more complicated since each computers will require access to the business data file.
Both QuickBooks Online and QuickBooks Desktop have a similar setup procedure. The quick setup takes roughly five to ten minutes and just needs some basic corporate data. Depending on if you’re importing data over from another accounting system, the more in-depth setup might take more than two hours. If you want to switch from QuickBooks Desktop to QuickBooks Online, follow our step-by-step instructions.
I urge that you devote as much time as possible to establishing your business. You’ll have a personalized business file that’s lot simpler to use if you set up your staff, suppliers, goods, and services ahead of time. By perusing our Free QuickBooks Online Tutorial, you can get a sneak peek at the setup procedure for QuickBooks Online.
Navigation in QuickBooks Online
In comparison to QuickBooks Desktop, QuickBooks Online is more user-friendly. The left navigation bar may be used to display customer, vendor, and account information. Customers’ information, including what they owe you, may be found by going to Sales and then Customers:
In QuickBooks Online, you may see client information. (Image courtesy of QuickBooks)
All transactions in QuickBooks Online may be started by choosing from the menu of transactions and clicking the New button above the left menu bar.
In Quickbooks Online, you may create new transactions.
Navigation in QuickBooks Desktop
QuickBooks Desktop has a variety of navigation options, but the main page is the most user-friendly for newcomers. Details on a vendor, customer, or employee may be accessed by selecting the relevant tab, and transactions can be started by selecting the appropriate icon. The most important functions, such as Vendors, Customers, Employees, and Banking, are shown on the Home Page. Enter Bills for Vendors, Create Invoices for Customers, and Enter Time for Employees are just a few of the functions that have their own icons that make it easy to access and complete various activities. The QuickBooks Desktop Home Page looks like this:
Home Page for QuickBooks Desktop.
Takeaway: Because QuickBooks Online offers a more simplified user interface than QuickBooks Desktop, it is often simpler to use. You won’t need to install anything to get started since it’s cloud-based software. If you’re a new bookkeeper, QuickBooks Online is the better option. If you’ve used other accounting software before, you’ll find QuickBooks Desktop simple to use with a little practice.
Assisted Bookkeeping with QuickBooks Online vs. QuickBooks Desktop
QuickBooks Online customers who want professional accounting support may buy QuickBooks Live Bookkeeping as an add-on. It’s a QuickBooks service that links you to a team of trained accounting specialists for real-time help through video chat, as the name implies. Your personal bookkeeper will keep track of your finances and offer month-end reports. Users of QuickBooks Desktop may locate a QuickBooks Desktop ProAdvisor to assist them with their accounting requirements in the meantime.
Takeaway: QuickBooks Live Accounting for QuickBooks Online may be a better option if you want more customized help for your bookkeeping. A qualified QuickBooks Desktop ProAdvisor, on the other hand, is a safe bet.
Integrations in QuickBooks Online vs. QuickBooks Desktop
QuickBooks Online has more integration opportunities than QuickBooks Desktop since it is cloud-based. QuickBooks Online works with a variety of third-party applications, including PayPal and Square. SOS inventory, Fathom, and TSheets are some of the data and financial management tools it integrates with. It also connects effortlessly with ecommerce platforms like WooCommerce and Shopify, making it our top ecommerce accounting software overall.
Qu, Gusto, Microsoft Excel, and Microsoft 365 are just a few of the third-party products that QuickBooks Desktop interfaces with. To create apps and interface with QuickBooks Desktop, developers may download and install the QuickBooks Desktop SDK [software development kit].
Takeaway: QuickBooks Online is the obvious option if you require additional automation capabilities via connectivity with other third-party solutions.
QuickBooks Online vs. QuickBooks Desktop: What’s the Difference?
QuickBooks Online is the obvious victor in terms of mobile accounting, while Desktop offers a relatively restricted mobile app. QuickBooks Web provides a mobile app with virtually all of the functionality of the online browser version, as well as additional features like receipt capturing and mileage tracking. QuickBooks Online is the greatest mobile accounting program in our opinion. The app is available on Google Play and the App Store.
Takeaway: If you want to be able to perform your bookkeeping from anywhere, the QuickBooks Online mobile app is a must-have.
Customer Support with QuickBooks Online vs. QuickBooks Desktop
QuickBooks Online offers an edge over QuickBooks Desktop in terms of customer support, which is infinite. It’s recommended to get the Plus yearly membership if you want limitless QuickBooks Desktop assistance. Otherwise, an à la carte Annual Care Plan would set you back $299 each year, the same as the full QuickBooks Pro Plus subscription. Anyone may access a massive, searchable online database of questions and answers in QuickBooks Online and Desktop.
Support for ProAdvisors
You may engage independent QuickBooks ProAdvisors to help you get started and keep things in order in both QuickBooks Online and QuickBooks Desktop. QuickBooks Online, on the other hand, offers a significant benefit when it comes to sharing your books with a ProAdvisor. You may invite a ProAdvisor to your business file in QuickBooks Online, and they will have 24/7 access to see and change your books. They will not be counted as one of your licensed users since they check in with their own ID.
It’s more difficult to distribute QuickBooks Desktop. You must transmit your data file to your ProAdvisor as an Accountant’s Copy. While your accountant adjusts previous periods, you may continue working on transactions in the current period using the Accountant’s Copy. It’s a decent approach, but it’s nowhere near as simple as sharing your books with QuickBooks Online.
If you’re a new bookkeeper, you should definitely go with QuickBooks Online and locate a QuickBooks ProAdvisor who can assist you out on a regular basis. While the Accountant’s Copy is a practical method to exchange records, it’s not something you’d want to do on a regular basis.
If you’re an independent bookkeeper trying to grow your company, becoming a QuickBooks ProAdvisor is a good option. QuickBooks Online ProAdvisors may get their certification for free.
Takeaway: When it comes to customer assistance, QuickBooks Online easily outperforms QuickBooks Desktop. It not only includes limitless assistance, but it also allows you to quickly share your books with a QuickBooks ProAdvisor.
Conclusion
QuickBooks Online is the best option if you handle the majority of your accounting work from home. Choose QuickBooks Desktop if you need to handle your books without an internet connection or if you require industry-specific functionality.
If you simply need one user and don’t need customer assistance, QuickBooks Desktop is also far more cheap than QuickBooks Online. In today’s mobile environment, however, the absence of a fully working mobile app for QuickBooks Desktop is a severe disadvantage.
In 2021, there will be two options for the average small business owner. The first option is QuickBooks Online and the second option is QuickBooks Desktop. This article explores which software is right for you. Reference: quickbooks desktop 2021.
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