The main difference between QB desktop and QB online is that QBD is desktop based and provides offline accessibility other hand, QBO and desktop both are cloud based accounting software for small businesses that is accessed via the internet. This means that QuickBooks Online makes accessing your data easier and quicker because you just need a device with internet availability. When you use QuickBooks Desktop, you want a PC that has this software installed. Also, QuickBooks Desktop is only available on Windows. When you compare QBD and QBO first main point is the design. QuickBooks Online has a more stoner friendly and intuitive design, whereas QuickBooks Desktop looks more dated and reminds me of a commodity from the mid-2000s. Both platforms have the introductory features needed to manage your accounts, but there are some contrasts between QuickBooks Online and Desktop.
Platform & Accessibility
QuickBooks Online, or QBO, is a cloud-based solution meaning you can access it from any device with an internet connection, including a laptop, tablet or phone. This is great for a business that has remote access or if your team is working in different locations.
QuickBooks Desktop is software that you install on the computer. It is best for businesses that do not require mobile access and are happy working from one desk. It does have better performance when you have larger data files, but it does not have cloud access (unless you want to pay more for hosting).
User Access
With the online version, QuickBooks Online, you can provide access to several users, based on your plan, and you also have control over what each user can see or do.
QuickBooks Desktop is more limited in terms of the number of users. It will depend on the version you buy (Pro, Premier, or Enterprise) and adding users will often be more expensive. Moreover, all of the users must be on the same network unless you are using a remote access application or are using hosting.
Pricing Structure
QuickBooks Online utilizes a monthly subscription service for all facets of the program. There are different plans available that offer basic features for freelancers to advanced capabilities for expansive businesses. Even though it could seem costly over longer periods, you will get automatic updates and backups!
QuickBooks Desktop more often than not is a one-time purchase (Intuit is pushing for annual subscriptions now), it could be cheaper long-term (but you pay for upgrades along the way and the backups are strictly manual).
Features & Functionality
QuickBooks Desktop is highly choose for its fast and reliable features, particularly for inventory tracking, job costing, and industry specific reports. Desktop is a better option if you own a business in manufacturing, construction, or retail that could use the added depth of accounting features.
QuickBooks Online has improved considerably in recent years and works for most small business needs including:
- Bank reconciliations
- Invoicing
- Expense management
- Sales tax calculations
- Integration with over 650 plus apps
However, it still falls slightly short of Desktop in complex features including advanced inventory, job costing, and custom reports.
Integration and Add-Ons
QuickBooks Online seamlessly integrates with various third-party applications, which includes Shopify, PayPal, Stripe, and many other apps. If you are running a modern e-commerce or service business, the integrations can save you a huge amount of time.
QuickBooks Desktop has less direct integrations compared to QuickBooks Online and it will often rely on desktop software or manual processes for integrations. However, QuickBooks Desktop includes powerful features as a part of the software, which may make integrations useless.
Data Backup and Security
Your data is automatically backed up to the cloud with QuickBooks Online and is protected with bank-level security. If your computer fails, you won’t have to worry about losing files.
Backups are manual in QuickBooks Desktop or use Intuit’s backup service. Although it might be safe, it places additional responsibility on users to protect data.
Customer Support and Updates
QuickBooks Online is included with all editions, and it offers free updates and customer support. The software also updates itself automatically.
QuickBooks Desktop will charge you for updates and support after the first year, and you have to install updates on your own.
Which One Should You Choose?
Choose QuickBooks Online if:
- You want access from anywhere
- You prefer a monthly subscription model
- You work with a remote team or accountant
- You value app integrations and automation
Choose QuickBooks Desktop if:
- You need robust inventory or industry-specific tools
- You prefer one-time payment over subscriptions
- You work from a single location
- You handle large data files and want faster performance
Final Thoughts
Both the Online and Desktop versions of QuickBooks can be trusted by many people for bookkeeping solutions. By using this software you can save time. Your choice is totally dependent on your business size and how you like to work. If you want a software which are easily accessible from anywhere and any device, QuickBooks Online is the best choice for you. If you are looking for a powerful accounting program and are working mainly from desktop systems, then QuickBooks Desktop is better option for your business.
