Difference between QuickBooks Online and Desktop Version

The widely-used accounting software- QuickBooks offers two main versions: Desktop and Online. Despite their similar features, both versions cater to different business needs and preferences.

Each version of QuickBooks shines in different areas. QuickBooks Online is popular for its online and cloud-based accessibility. At the same time, the Desktop version offers in-depth accounting, making it the first choice for businesses who want complete control over their data. 

This article provides a detailed comparison between QuickBooks Online and Desktop Version to help you choose the one that best suits your business. 

So keep reading.

QuickBooks Online Vs. QuickBooks Desktop: An Overview

To start with, Quickbooks online is ideal for remote access and offers flexibility. On the other hand, Quickbooks desktop is still a go-to choice for businesses that require powerful features and local control over their data. 

QuickBooks Online (QBO)

QuickBooks Online is a cloud-based, mobile-friendly version of QuickBooks desktop marketed as a “light” version. The major features of QuickBooks Online (QBO) are:

1. Cloud-based service accessible via a web browser or application

One distinguishable feature has to be “cloud-based.” This means all the data on QBO is stored online, and the user can access it either through Quickbooks online for desktop or through a mobile app. This gives users the flexibility to manage their finances from anywhere and everywhere. 

2. Requires an internet connection that is accessible from anywhere

Since it is a cloud-based solution, it requires an active internet connection to access and manage all the finance-related data. However, the positive point is that you can sign in from any device with internet access and work remotely. 

3. Offers automatic invoicing and more integrations

QBO has automatic invoicing functionality through which recurring invoices can automatically be set up and sent to clients. The software is also integrated with third-party apps and tools, giving businesses additional functionalities like payment processing, CRM tools, and e-commerce platforms. 

4. Live bookkeeping support and international invoicing

QBO comes with live bookkeeping support. That means businesses can get on-time support from professional accountants if they are stuck somewhere. In addition to this, the system also supports international invoicing, so users can do business without any boundaries and send invoices to their clients in different currencies, helping users to spread their business globally. 

5. Compatible with Mac

QBO is compatible with both Windows and Mac systems. Since it is web-based, Mac users don’t have to worry about compatibility issues, which generally occur with desktop software.

Also Read: Why B2B Order Entry Software for Quickbooks Online Is a Must Need!!!

QuickBooks Desktop (QBD)

Irrespective of QBO,  the QuickBooks Desktop (QBD) is an on-premise business accounting system suitable for all types of industries. Here are the primary features of a QuickBooks desktop:

1. Local application installed on a specific computer

QBD is an accounting software that is installed locally on a computer. This means all your data will be stored on the computer, not the cloud. So you will have more control over your data. However, the accessibility will be limited compared to the QuickBooks online version. 

2. Access costs include additional fees for installation on more computers

You have to pay additional costs if you install QuickBooks Desktop (QBD) on more than one computer. Unlike QBO, where multiple users can access the software from any device, QBD demands individual installations, and for multiple users, additional fees will add up. 

3. Exclusive features include sales orders and ~50 more report types

Nevertheless, QuickBooks desktop provides multiple exclusive features that seem to be absent from the online version. For instance, in QBD, you will get sales orders and around 0 more types of reports. These additional reports give more detailed insights into business finance. So, it is considered best for large businesses that require advanced reporting. 

4. Industry-specific reports and features

Similar to the exclusive feature, different QuickBooks Desktop versions are tailored for different types of industries, such as manufacturing, wholesalers, and nonprofits. These specific versions of QuickBooks Desktop have industry-targeted tools and reports, allowing businesses to customize financial management and meet unique industry-specific needs. 

QuickBooks Online Vs. Desktop: Which is Better For Whom

Both QuickBooks desktop versions and Quickbooks online come with basic features that a business needs to manage their accounts. 

QuickBooks desktop versions contain advanced features and are used for complex accounting. This particular version also allows you to create sales orders and can be tailored depending on the industry. 

That’s why QuickBooks desktop (QBD) is considered more suitable to use for:

• Contractors
• Manufacturers
• Wholesalers and distributors
• Accountants
• Nonprofits
• Other professional services

On the other hand, QuickBooks Online provides twice as many integrations. It has a better invoicing feature and includes payment reminders, batch and progress invoicing, virtual bookkeeping, and much more. That is why QuickBooks online is suitable for:

• eCommerce businesses
• Freelancers and consultants
• Startups
• Multi-location businesses

Now that we have covered the basics, let’s understand the major features of both QuickBooks versions. 

QuickBooks Online and Desktop Comparison Based on Features

1. Accessibility and usability

QBO: It is a cloud-based solution that gives flexibility to businesses by giving them access through any web browser and mobile app. 

That’s why QuickBooks Online is considered ideal for remote teams and users who need to manage their finances remotely and in real time. 

QBD: Whereas QuickBooks Desktop (QBD) is installed locally on a specific server. So, it’s not accessible for remote users unless and until additional third-party software or hosting services are set up. 

Which one is better?

 For businesses that need flexibility and the ability to work remotely, QBO is better.

But, if you prioritize local data control and operate from a fixed location, then QBD is best. 

2. Pricing

QBO: Quickbooks Online runs on a subscription-based pricing model, and its basic plan starts from $180 annually. However, this pricing varies depending on the plan chosen. QBO offers four different types of monthly plans (basic, essential, plus, advanced) and has a 30-day free trial.

Also, since it is a cloud-based service, updates are included in the subscription plan, so businesses don’t have to worry about upgrading to new versions.

• Basic: $30/month, 1 user
• Essential: $50/month, 3 users
• Plus: $80/month, 5 users
• Advanced: $200/month, 25 users

QBD: The latest 2023 version of Quickbooks desktop has a subscription model that costs $549 annually; this is for the pro version. The higher cost is because of the more prime features available in the desktop version like advanced reporting, job costing, and industry-specific solutions. QBD gives annual subscriptions and comes with a 60-day money-back guarantee. 

• Premier Plus: $549/year, 5 users
• Enterprise: $1206/year, 40 users

Which one is better?

Regarding pricing, QBO is generally better for businesses that need lower starting costs. In comparison, QBD may become costly by adding users and going for manual updates. 

3. Features comparison

QBO: Other than basic accounting features, Quickbooks Online provides automatic invoicing and live bookkeeping support. It allows businesses to do automatic invoicing and easily set up recurring invoices for clients. 

Live bookkeeping support is helpful for businesses that need real-time assistance managing their logs. With this feature, businesses can connect to a QuickBooks expert for bookkeeping help so that their financial data is accurate and up to date. 

QBD: The shining features of QuickBooks desktop versions are sales orders, industry-specific reports, and more report types. The QuickBooks sales order feature helps businesses create and track sales orders. It’s best suited for businesses that sell products. Through this feature, businesses can track clients’ unfulfilled orders and manage the inventory and stock level effectively. 

QBD also provides more than 100 built-in reports that are industry-specific. 

Which one is better?

Both QBO and QBD offer a large number of features and share many of the same features. However, QuickBooks desktop versions have more developed features when it comes to invoicing. However, QBO has live bookkeeping support. So, when it comes to features, there is a tie between both QBO and QBD.

4. Support and updates

QBO: QuickBooks Online offers regular updates and 24/7 support. Its cloud-based functionality provides automatic continuous updates, so users always have access to the latest features and security patches. Whenever a new feature rolls out, businesses don’t have to purchase it; they will automatically get upgraded. 

QBD: The Quickbooks desktop versions only receive updates and support for the latest versions. That means if the user does not renew the upgraded version, no updates or security patches will be added. Plus, if a business uses the older QBD version, it may or may not have customer support. 

Which one is better?

QBO is better, as it gives continuous updates, 24/7 support, and automatic feature updates, making the entire software more convenient for users. 

5. Data and security

QBO: Since QuickBooks Online is cloud-based, the brand’s developers handle all the security updates. Security updates are automatically applied to QBO from the backend to prevent potential threats to client data. Additionally, all the data in QuickBooks Online is stored securely on the cloud with automatic backups that are carried out by Intuit’s servers. 

Thus, the risk of data loss gets off the table.

QBD: In the case of QBD, backups are generally in the hands of the users. Because businesses have to manually back up their data to the local storage device or any other third-party cloud services. But this also increases the risk factor because any failure in performing regular backups can result in data loss. 

Moreover, the latest version of QBD receives security updates. So, to ensure your data remains safe, it’s important to stay up to date with the latest version as soon as it becomes available.

Which one is better?

For businesses that prioritize remote access and data backups, QBO is a better choice because QBD demands manual work and is less flexible for remote teams.

6. Ease of installation and use

QBO: Since Quickbooks Online is a cloud-based solution, it does not require any installation in particular. That is why it is easy to use and understand.

QBD: On the other hand, the installation of Quickbooks desktop versions on a single computer takes a few minutes. However, the same step for multiple computers might get complicated because each machine will need access to the organization’s data file. 

Nevertheless, Quickbooks desktop is designed for accounting professionals. It has a flowchart-style menu, a customizable user interface, and several shortcuts for features. 

Which one is better?

QBO is easy to install and easy to use and has a beginner-friendly interface. QBD is complex to install but is best for big organizations that hire accounting professionals.

QuickBooks Online vs. QuickBooks Desktop: Final Showdown

If the above comparison point, seems overwhelming to you, then focus on this section. Although, there are various points of comparison if we have to generalize the difference between QuickBooks online and desktop versions then the simple way is to understand where each of the software shines and fails. 

Where does QuickBooks Online shine?

• Complete cloud-based format
• Additional live bookkeeping support
• High-quality invoice template
• Auto schedule invoice options
• Invoicing option in multiple languages

What are the limitations of QuickBooks Online?

• Features not as advanced as Quickbooks desktop version
• Only Support up to 25 years
• Don’t have industry-specific features.

Where does QuickBooks Desktop shine?

• Locally-installed format
• 50+ more reports than quickbooks online
• Industry-specific features
• Optional industry-specific reporting
• Lead management
• Advanced inventory management
• Sales order
• Fewer security risks.

What are the limitations of QuickBooks Desktop?

• Pro and Premier versions are no longer available to new users
• Expensive
• Additional fees for cloud access
• Steep learning curve
• Limited integrations

To Conclude,

The answer to the question – does QuickBooks has a desktop version- yes, it does have an active desktop version. The QuickBooks desktop version is a better option if you are a single user and want locally installed software with advanced features. But if you have multiple users and you use live bank feeds, then QuickBooks online is probably better for you.

Ultimately, the choice between QuickBooks Online and Desktop depends on your unique business needs. However, integrating with Wizcommerce can have a significant impact regardless of which version you use.  

WizCommerce’s integration with Quickbook provides you with everything that you need for a cloud-based eCommerce solution. The system syncs QuickBooks online with the sales channel to simplify bookkeeping. This means the sales team doesn’t have to spend time reconciling data from multiple channels. This is not just for QBO. WizCommerce syncs QuickBooks desktop versions with online stores, to give an automated multichannel inventory hub. It integrates with QuickBooks to automate important but repetitive tasks like order confirmation, invoicing, sales order management, and much more. 

By integrating Wizcommerce with your QuickBooks software, you can minimize inventory mistakes by getting real-time stock information that auto-updates with your accounting software. With WizCommerce, you can avoid the hassle of juggling multiple systems and accelerate your wholesale business’s success. 

Learn more about WizCommerce integration with QuickBooks and let your sales reps focus on what they are good at closing deals. 

WizCommerce is the best eCommerce integration for all types of Quickbooks users. Get started by booking a demo today!