QuickBooks Online vs Desktop: Which Is Right for Your Business?

QuickBooks Desktop offers good integration options, integrating with more than 200 third party applications, making it one of the better integrated desktop application options. However, it doesn’t compare with the more than 500 options offered by QuickBooks Online. QuickBooks Online offers integration with more than 500 third party apps in categories such as Payments, CRM, Project Management, Payments, Payroll, Invoicing, Inventory, and Time Tracking. You can easily connect to any third-party app from within the application, saving you a ton of time in the process.

QuickBooks Desktop, on the other hand, is a good option for businesses that prefer desktop software, need its advanced inventory tracking and reporting tools, or are looking for an industry-specific solution. The software must have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. Some of the features we looked into include the ability to create and send invoices, accept online payments, enter and track bills, and view reports on the go. In addition, the Premier and Enterprise plans offer more than 150 reports, with industry-specific reporting options available. When working with the Desktop version, it’s downloaded right to your computer.

How the Software Stacks Up

Users can access features via the vertical menu to the left of the screen or by using the drop-down menu bar at net working capital ratio 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. 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.

Small to midsize businesses that want a desktop solution or need advanced inventory and industry-specific features. QuickBooks Online is cloud based, which means you can access your QuickBooks account anywhere you have the internet and an internet-enabled device. QuickBooks Desktop is desktop based, meaning you’ll buy a hard copy of QuickBooks’ software, then download that software once onto a single device.

Software type

While you can add cloud access to QuickBooks Enterprise, it involves an additional fee. At Business.org, our how to record a sale or payment 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. QuickBooks might encourage its users to switch from QuickBooks Desktop to Online, but it hasn’t issued any statements about discontinuing Desktop entirely. But based on the tech industry’s growing emphasis on cloud storage over local storage, it’s hard to imagine that downloadable programs like QuickBooks Desktop will still be relevant a decade down the road.

1. QuickBooks Online wins for pricing because it’s essentially more affordable than QuickBooks Enterprise.
2. On the other hand, established businesses may get more out of QuickBooks Desktop with its advanced capabilities in a secure database.
3. You can send a copy of your company file to your accountant and import their changes.
4. If you can file taxes confidently on your own, Enhanced Payroll might be suitable.
5. The side menu categorizes features for easy access, for example, aggregating sections for employees, their taxes, and compliance details under the Payroll category.

Pros & Cons

QuickBooks Desktop also offers easy integration with QuickBooks Payments so you can accept online payments from customers. But aside from cloud access, there are other differences between the two applications that we’ll talk about next. MarketWatch Guides may receive compensation from companies that appear on this page. The compensation may impact how, where and in what order products appear, but it does not influence the recommendations the editorial team provides.

For instance, QuickBooks Desktop allows you to create customized job costing reports tailored to specialized industries, including manufacturers, contractors, and retailers. We developed an internal case study to evaluate the accounting software we make or buy decision explained review subjectively. 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. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights.

Another key difference between QuickBooks Online and Desktop is that the former allows you to track your activity, such as income and expenses, by class and location. This is useful for businesses with multiple departments or divisions and those that provide various types of services. Meanwhile, QuickBooks Desktop allows you to set up classes, but you can’t track your income and expenses by location. 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.