QuickBooks Online vs QuickBooks Desktop: What's the Difference?
Choosing between QuickBooks Online and QuickBooks Desktop will make a big difference in your accounting procedures and many others in your company since each of them has its own specificities, price, and advantages depending on your goals. Learn more about the main differences between QuickBooks Online and QuickBooks Desktop.
Two QuickBooks Solutions Overview
QuickBooks Desktop and QuickBooks Online are two different accounting software solutions which are different both in terms of their nature and accounting procedures. QuickBooks Desktop is accounting software that can be installed on your personal computer or network and offers manual updating and backups. QuickBooks Online is cloud-based accounting software that can be used through web browsers and offers automatic updating and backups. These software solutions offer different specificities and advantages, and one of them will be better for your company compared to another one. Understanding these differences will help you choose the right software solution. As of 2020, QuickBooks does not develop its desktop solution anymore and only focuses on its cloud-based solution. Existing users of QuickBooks Desktop will still be able to use the old version without any updates.
Cloud-Based Access and Device Flexibility
Because of its cloud-based functionality, QuickBooks Online can be used by the user from any computer or device that has internet access. As such, the user can have the liberty of choosing between browsers and applications in using the data from computers, tablets, and even smartphones. The remote working process through QuickBooks Online is facilitated easily since the data can be accessed through internet connectivity regardless of which particular computer the user is using. It is also easier for multiple users to access QuickBooks Online simultaneously because there is no need for a local network or database. Unlike QuickBooks Desktop, QuickBooks Online does not need to be installed on specific computers only.
Automatic Updates and System Maintenance
All versions of QuickBooks Online come with automatic updates to the latest versions, ensuring that customers can use the most up-to-date versions of the product. There is no need for customers to manually install the updates; besides, there is no risk of dealing with compatibility issues due to different versions. Cloud infrastructure automatically manages system updates and performance. The security of data in cloud-based accounting software is managed by Intuit's professional cloud infrastructure team by Intuit with the best enterprise-level security. In the case of the Desktop version, updates and security patches have to be installed manually by customers. The security of data depends on the security settings of your computer network.
Feature Sets and Functionality Differences
QuickBooks Online has the latest capabilities such as reporting, automated bank feeding, and artificial intelligence-based insights. Mobile apps have basic capabilities as far as the operation of businesses is concerned. The integration ecosystem enables the user to integrate their QuickBooks Online with hundreds of third-party applications. The automation capabilities enable the user to save them from performing redundant data input activities in accounting. QuickBooks Desktop has advanced capabilities that are favored by users of QuickBooks Online, especially customizations and complicated project tracking. Basic capabilities of QuickBooks Desktop have undergone enhancement for many years now. Some special capabilities are available with QuickBooks Desktop but not with QuickBooks Online.
Pricing and Subscription Models
QuickBooks Online uses a subscription pricing model with monthly fees based on the selected For QuickBooks Online, the pricing strategy is based on the use of the subscription pricing approach, meaning that the amount of money required will be monthly depending on the plan that one chooses. Plans normally range from $15 to $150 per month. With the subscription pricing strategy, there will be provision of automatic updates, storage, and support to the customer. With regard to the pricing strategy of QuickBooks Desktop, it is done via the use of a one-time fee ranging from $200 to $500. One can include a payroll subscription to incur additional cost every month.
Scalability and Business Growth Considerations
Using QuickBooks Online, you are able to expand your business easily without setting up any infrastructure due to the growing number of users and transactions. New users and features can be added through a change in the plan alone. The cloud infrastructure handles the increased data and processing needs without any problem. In the case of QuickBooks Desktop, you need to manage the growing requirements and demands in terms of growing your business. This is because the addition of users will require you to configure your networking and database.
Security and Data Protection
QuickBooks Online provides you with an enterprise level of security with its encrypted connections, two-factor authentication, and data center redundancy. Security upgrades will be automatic from the service provider, ensuring that your data is safe. When it comes to QuickBooks, Intuit offers you the highest investment in infrastructure and compliance certifications. Disaster recovery and business continuity are built into the cloud infrastructure. The security provided by QuickBooks Desktop will be limited by the antivirus and firewall protection of your computer.
Making the Right Choice for Your Business
In relation to the decision that you need to make about QuickBooks Online and Desktop, you need to ensure that the decision made takes into account an unbiased evaluation of your needs. QuickBooks Online software would suit your business needs perfectly, especially in situations where you want to consider cloud computing software that is very mobile and updated automatically. The software would suit a business that is growing. If you have employees working from remote locations, then QuickBooks Online software would suit you. Budget-constrained businesses can choose to use QuickBooks Desktop software. If you have some specific needs, then this software would suit you best.
Understanding the differences between QuickBooks Online and QuickBooks Desktop can help businesses select an accounting solution that fits their workflow and requirements.