QuickBooks is one of the most popular accounting packages in the world. It’s trusted by businesses of all sizes, from small brick and mortar stores to large enterprises.
Over the years, this simple accounting software has evolved into two distinct packages: QuickBooks Online vs. Desktop. While this expanded the power and features of QuickBooks, it did create new questions among new users. How much does QuickBooks cost? Should I go with the desktop or online version? What are their differences?
To help you pick the right one, we’ve written this comprehensive guide to help you understand QuickBooks products and pricing.
QuickBooks Online is the cloud-based, mobile version of the popular accounting platform. It started as a “light” version of QuickBooks Desktop but quickly grew into a powerful edition in its own right.
QuickBooks Online works on a Software-as-a-Service (SaaS) architecture, which means you need to pay a monthly subscription instead of an upfront payment as with traditional software.
The main focus of the Online edition is mobility and ease of use. Thanks to a cloud architecture, businesses can work their numbers anywhere in the world using any device of their choice. It’s also chock full of automation features that make it an exceptionally easy package to use, even for non-accountants.
QuickBooks Online also comes in another edition: QuickBooks Online Advanced. This includes a stronger feature set and hundreds of integrations that make it feasible for larger enterprises.
QuickBooks Desktop is the “traditional” version and what many old school accountants and bookkeepers might be used to. It works just like any software that needs to be installed on your computer.
As such, the Desktop edition is packed with more features and rich with tools that any accounting professional needs. It’s also much more flexible with over 240 integrations, thus allowing you to fit it much more seamlessly with your business’s workflow.
However, this also means that the learning curve is steeper with QuickBooks Pro vs. Online. It requires more expertise and knowledge to fully utilize its power, which is why it’s better suited for professionals.
QuickBooks Desktop is further divided into three versions: Desktop Pro, Desktop Premier, and Desktop Enterprise. Of the three, Pro is the most basic iteration with comparatively minimal features, making it perfect for small businesses. Desktop Enterprise is on the other end of the spectrum, with robust tools and more seats required for large corporations.
The most obvious difference between QuickBooks Online and Desktop is the pricing scheme. As we’ve mentioned above, the Online version works on a monthly subscription, while the Desktop edition has an annual fee.
In some ways, the annual pricing makes the cost of QuickBooks Desktop vs. Online much lower overall, especially with the features you get. The edge of QuickBooks Online fees, however, is that it already comes with 25 users by default. In contrast, the Desktop version only comes with three in their lowest plan.
Of course, getting QuickBooks’ best price depends on the plan that you need.
Ease of setup is another advantage of QuickBooks Online vs. Desktop. Reviews point out that the online version allows you to jump right in almost immediately because no installation is needed! The Desktop version, in comparison, requires extensive setup.
The desktop version offers much more developed and robust tools than its online counterparts in terms of features. It provides deeper inventory, as well as customer and vendor management components that make it far suited for handling businesses with complex operations.
QuickBooks Online, on the other hand, focuses on automation and mobility. As a result, it has useful features that aren’t found in the desktop software, such as banking connectivity and automatic reconciliation.
Now that you know the differences between QuickBooks Online vs. Desktop, the next question is: which one is right for your needs?
Generally, QuickBooks Online is the prime choice for smaller or web-based businesses, thanks to its ease of use and great online capabilities. However, it’s also great for on-the-go entrepreneurs who prefer to manage their businesses from their smartphones. In many ways, QuickBooks Online is the version that has a wider appeal and coverage.
QuickBooks Desktop is designed for businesses that require a more robust and reliable accounting package. Because of its rich feature set, it’s also great for companies with complex operations that require a bespoke solution. If you have a dedicated accounting team, they might also prefer the power the desktop edition provides.
Whether you need QuickBooks vs. QuickBooks Online, our expert advisers can offer you the best QuickBooks edition to use based on the needs of your business. Our QuickBooks Pro Advisors do all the legwork to set up, install, and even train your staff to use your new accounting package.
Whether you need help with your software or you want to outsource your accounting, trust the experts at Porte Brown. Contact us today to learn more and get one of the top accounting firms in Chicago on your side.
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