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

As Forbes notes, QuickBooks Desktop works well for businesses comfortable managing their own accounting and IT, including regular backups and security software updates. However, relying solely on local storage can create risks, like data loss from a hardware malfunction or physical theft. QuickBooks Online allows multiple users to access and work on the same company file simultaneously, simplifying teamwork and streamlining workflows.

We believe everyone should be able to make financial decisions with confidence. By leveraging the right version of QuickBooks, you can enhance your business’s financial management and drive growth. By understanding the strengths and limitations of each version, you can make an informed decision that aligns with your business goals and financial management needs. Join me in GoSkills’ beginner-friendly QuickBooks Online course to gain the confidence you need to handle your business’ books, boost your accounting efficiency, and enhance your bookkeeping skills. On the flip side, you can access QBO from any location in the world, with the sole requirement of connecting to the internet.

Optional QuickBooks Online add-ons

You don’t need an internet connection to use QuickBooks Desktop, which is helpful for businesses in areas with unreliable internet or those who prefer to work offline. This also means your data is stored locally, giving you direct control over its security. Finally, QuickBooks Desktop suits businesses comfortable with accounting and who don’t need real-time collaboration. If your team is already familiar with desktop accounting software, the transition will likely be smooth. For businesses looking what is a contra asset account for assistance with their accounting processes, consider exploring FinOptimal’s managed accounting services. While QuickBooks Desktop may not have the same vast library of direct integrations as its online counterpart, it offers a different approach to extensibility.

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1. It takes a bit of time to click around and understand where everything is, but a quick run-through is more than enough to familiarize yourself with what QuickBooks Online can do.
2. Compared to QuickBooks Online, QuickBooks Desktop offers more advanced accounting.
3. One is sleek and modern, and the other seems to have been designed for a cubicle.
4. Zapier notes that the accessibility and real-time collaboration offered by QuickBooks Online add value beyond the direct cost.
5. QuickBooks Desktop, on the other hand, is installed locally on your computer.

When subscribing to a QuickBooks Online plan, you can elect to purchase add-on services and enhancements to better suit your needs, found at The software-only QBDT versions are fully functional and useful at the time you purchase them. However features present in editions older than three years are subject to planned obsolescence, removal, and discontinuation to “incentivize” you to purchase a new release. These versions are further differentiated by how you purchase the product. QuickBooks Desktop is, as its name implies, the desktop version of the software. QBDT is installed locally on your PC in much the same way other software is, like your internet browser.

For example, Xero and FreshBooks are cloud-based platforms what is an option put and call option explained with extensive features for small and medium-sized businesses, while Quicken is a desktop option for self-employed individuals. Upon opening QuickBooks Desktop, we found that the general layout didn’t differ too much from that of QuickBooks Online. For instance, there were tabs for inventory tracking, job costing and industry-specific reporting.

Cloud Security vs Local Data Safety

Another myth is that the two versions differ significantly in core functionality. Both Online and Desktop excel at organizing your accounting processes and automating data entry (Zapier), freeing you to what is the cost principle and why is it important focus on more strategic tasks. Finally, some believe Desktop is only for accounting experts, while Online suits businesses needing real-time collaboration.

While QuickBooks Online does offer security features like multi-factor authorization and encrypted data storage, it’s accessible by anyone with employee login credentials and an internet connection. If you go with QuickBooks Desktop Pro or Premier, a payroll add-on is available for an additional monthly fee. While these products will still be available to existing users, QuickBooks Desktop Payroll for Pro and Premier will no longer be available for new users to purchase starting on September 31, 2024. For small business owners new to the accounting scene, this service may bring much-needed peace of mind when managing your books and filing small business taxes. QuickBooks Online and QuickBooks Desktop operate on true double-entry accounting principles and have both accrual and cash-basis accounting. Each offers a detailed chart of accounts, journal entries, bank reconciliation, accounts payable, accounts receivable, and the basic reports needed to run a company.

One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022. However, the QuickBooks Desktop app is a very pared-down version of the desktop and is poorly rated. If your business needs sales orders, QuickBooks Desktop is your only option. Although Intuit has talked about adding sales orders to QuickBooks Online, this feature is only available with QuickBooks Desktop products at this time.