However, please note that access to add-on services will be discontinued for all QuickBooks Desktop software after May 31, 2023. How much you’ll pay for each service depends on the service tier you buy. Both QuickBooks Desktop and QuickBooks Online offer multiple service tiers that cater to different business needs, such as the number of employees who need to access the software. There are two main versions of QuickBooks — QuickBooks Desktop and QuickBooks Online — and there are many differences between them. In particular, the QuickBooks Desktop platform, which is either installed locally or hosted remotely, offers different functions than the QuickBooks Online cloud computing version, which is fully remote.
Can you lock months in QuickBooks Online?
QuickBooks Online and QuickBooks Desktop are both excellent small business accounting software applications, both offering complete double-entry accounting as well as automatic processing of closing entries. 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 form 990 for nonprofits 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. This includes the availability of integrations for payroll, time tracking, and receiving e-payments.
QuickBooks Online vs. Desktop
The cloud accessibility plus the user-friendly interface makes QuickBooks Online easier to use than QuickBooks Desktop. In the past, customers could choose between annually renewing plans and single-purchase software with a license that stayed valid for three years. If you purchased a Desktop Pro plan in 2021, your software will still work until 2024—but new customers who bought the 2022 software version can only choose annual subscriptions. QuickBooks Online offers more features on the go and is a better overall value than QuickBooks Desktop. If you don’t need the advanced features offered by the Desktop plan, the Online version will save you money. QuickBooks Desktop is a good choice if you need specialized features such as inventory tracking or forecasting, and you don’t mind paying more for them.
Talk to sales
Christine Aebischer is an assistant assigning editor on the small-business team at NerdWallet who has covered business and personal finance for nearly a decade. Previously, she was an editor at Fundera, where she developed service-driven content on topics such as business lending, software and insurance. She has also held editing roles at LearnVest, a personal finance startup, and its parent company, Northwestern Mutual.
QuickBooks Online vs. QuickBooks Desktop: Which Is Better for Your Business?
- Previously, she was an editor at Fundera, where she developed service-driven content on topics such as business lending, software and insurance.
- QuickBooks Desktop is a conventional accounting software that requires downloading and installation on your computer and follows an annual license pricing structure.
- Throughout her career, Meaghan has worked with B2B, software and digital marketing businesses.
- 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.
- QBDT is installed locally on your PC in much the same way other software is, like your internet browser.
For Xero’s Early plan ($13), the number of invoices that users can send each month is capped at 20, but for all other Xero plans, users can send unlimited invoices. QuickBooks Desktop Pro Plus is ideal for small businesses that need robust, locally installed accounting software for up to three users. An upgraded plan that includes QuickBooks Enhanced Payroll is also available, or you can purchase QuickBooks Payroll as an add-on. Both plans are billed annually and include automated backup and recovery, unlimited customer support, and automatic updates. On the other hand, QuickBooks Desktop provides robust features, offline access, and extensive customization options, but it lacks the flexibility of cloud-based collaboration. Larger businesses with substantial accounting teams may want to consider the QuickBooks Advanced plan.
QuickBooks Premier Plus + Payroll
While both software types have plenty of perks, QuickBooks Online is a more flexible, affordable, and scalable option for most small-business owners. QuickBooks Desktop doesn’t offer the same multi-user accessibility, but it does have a more comprehensive assortment of features that provide an in-depth view of your accounting operations. QuickBooks Desktop offers more advanced inventory management features, job costing worksheets, https://www.business-accounting.net/ sales orders, and highly customizable reports. I was impressed with how you could do batch invoicing, something QuickBooks Online doesn’t offer. QuickBooks Online is one of the preeminent cloud-based accounting software platforms on the market. With five plans available, including a plan specifically for self-employed individuals and independent contractors, there are several options from which to choose, depending on your needs.
The four remaining editions of QBO include Simple Start, Essentials, Plus, and Advanced. Each edition varies in terms of its available features and functionality, with Advanced providing the fullest feature set. If your office computer is a Mac, you can still use QuickBooks Desktop on your Mac. I do this using Parallels, software which allows you to run Windows applications on your Mac.
While they share many of the same features, QuickBooks Desktop’s features are often more developed, except when it comes to invoicing. 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 https://www.intuit-payroll.org/cash-flow-statement/ one for your business (and your budget). QuickBooks Online supports up to 25 users, which does fall short of the 40 users supported under QuickBooks Desktop. Some accountants dislike QuickBooks Online’s limited functionality, limited report customization, and dependency on the internet.
To find out what we thought about it, please check out our review of QuickBooks Online 2024. Should you use the desktop application or web browser version of QuickBooks? If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work.
Access to accountants is granted independently from your regular user limit in QBDT. However, QBO restricts access to up to two accountants or accounting firms. It is worth noticing that an accounting firm can add their team members, and this does not impact the user limit because it happens from within the firm’s access. QuickBooks Self-Employed, or QBSE, is the version of QBO marketed toward freelancers and other self-employed business owners. Unlike its counterparts, this edition of the software can never be upgraded to the small business editions of the software. Based on feedback I have received from clients, the other benefits of Plus do not warrant the additional cost.
A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments. 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. 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. On the flip side, some complained that QuickBooks Online can’t manage multiple companies in a single account and that it lacks assembly management features. Others are also unhappy that they couldn’t easily contact QuickBooks Online’s customer support.
There’s never any requirement that you have internet connectivity after the initial download and install. If you need help with the initial setup of your QBO file, you can hire a professional bookkeeper through the ProAdvisor directory. This person can customize your QBO for your preferences and needs, set up your chart of accounts, connect QBO to your bank account(s), and put automated processes into place for your most frequently-used tasks.
Starting fresh in QuickBooks Online allows you to create a new company file and set up your accounting records from scratch, providing a clean slate for your financial data. Keep in mind that each new company you create will have its own subscription and billing, separate from any existing companies you may have in QuickBooks Online. Accountant preferences between QuickBooks Desktop and QuickBooks Online vary based on specific needs. QuickBooks Desktop offers robust features for complex needs and offline work, while QuickBooks Online prioritizes accessibility, real-time collaboration, and automatic updates.
Platinum or Diamond may be the way to go if you need advanced inventory and pricing. If you need more users than you can get with QuickBooks Premier but don’t need advanced features, then maybe Gold is a better option. If you choose QB Desktop, you can put your file(s) on an authorized QB hosting or setup a simple private cloud at your own premise. Your team in the local office can work in multiuser mode simultaneously with your remote team.