However, a major pitfall is that previous QBO files cannot be restored like with QBDT files. One workaround for this is to purchase a subscription to your own backup and restore software. Once the initial setup has been completed, you’re wholly responsible for handling your books.

• Neither QuickBooks Online or QuickBooks Desktop are difficult to use, although they offer very different user experiences.
• With six industry-specific versions, QuickBooks Enterprise has highly developed features to meet the needs of nearly any large business.
• Because QBDT is a local install on your computer, you can access your file at any time.
• Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022.

The four remaining editions of QBO include Simple Start, Essentials, Plus, and Advanced. Each edition varies in terms of its available features and functionality, with Advanced providing the fullest feature set. Alternatively, you can hire a QuickBooks ProAdvisor to help with your bookkeeping needs. To help you get started, we prepared a guide on how to find a QuickBooks ProAdvisor. Meanwhile, if you or your accountant want to become a ProAdvisor to demonstrate expertise in QuickBooks, read our article on how to become a QuickBooks ProAdvisor.

QuickBooks Desktop features

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.

It has been on the market since 2002 and has added features and functionality every year since. It can handle a large volume of data, and has advanced reporting options that give users more flexibility. If you’re searching for accounting software that’s user-friendly, full of smart features, and scales with your business, Quickbooks is a great option. QuickBooks Online offers over 80 reports depending on your plan, whereas QuickBooks Desktop Pro has over 130 reports. QuickBooks Desktop Premier and Quickbooks Desktop Enterprise have even more reports (especially if you opt for the industry-specific versions of these programs). The main difference between QuickBooks Online and QuickBooks Desktop is that QuickBooks Online is cloud-based accounting software, and QuickBooks Desktop is locally installed.

All reports can be exported to Microsoft Excel for customizing, viewing on screen, printing, or emailing directly to recipients. Users can access features via the vertical menu to the left of the screen or by using the drop-down menu bar at the top, and the My Shortcuts option allows you to add a shortcut to frequently used features. If the default screen is too crowded for your taste, you can hide the vertical menu, only displaying it when you wish. You can easily access all QuickBooks Online features from the dashboard, where you’ll find a vertical menu bar to the left of the screen. While the dashboard is a bit cluttered, you can easily customize it to only display the information you wish. Those interested in trying out QuickBooks Online can access a free 30-day demo with sample data that allows you to easily explore system features and functions without spending a lot of time entering data.

QBO offers up to 25 full-fledged users total and an unlimited number of time-tracking-only users. QuickBooks Desktop is on-premises accounting software with optional remote access through an internet connection. QuickBooks Desktop versions are Pro Plus, Premier Plus, and Enterprise, which are sold as yearly editions with an annual price that varies by the number of users.

• This is also possible with QuickBooks Desktop, though some banks charge connection fees.
• If you have employees, you can add QuickBooks Payroll to your QuickBooks Online account for as little as $45 per month plus $5 per employee.
• Discover BusinessLoans.com’s lender network offering up to $3M in funding, no minimum credit score required.
• Tax1099 provides a comprehensive suite of features including year-round eFiling, prior year eFiling, corrected forms, and more, making eFiling an easy and efficient process.
• A slight difference between QuickBooks Online and Desktop in terms of invoicing is that the former allows you to calculate sales taxes automatically to apply to an invoice based on the customer address.
• The reason, we speculate, is that there is overlap in demand for QuickBooks Desktop for Mac and QuickBooks Online.

QuickBooks Online offers integration with more than 500 third party apps in categories such as Payments, CRM, Project Management, Payments, Payroll, Invoicing, Inventory, and Time Tracking. You can easily connect to any third-party app from within the application, saving you a ton of time in the process. QuickBooks Online offers a variety of pricing plans, which range from $12 to $75 for the first three months.

What is QuickBooks Desktop?

QuickBooks Online is cloud based, which means you can access your QuickBooks account anywhere you have the internet and an internet-enabled device. QuickBooks Desktop is desktop based, meaning you’ll buy a hard copy of QuickBooks’ software, then download that software once onto a single device. The maximum amount of users you can have with a QuickBooks Online subscription is 25 (plus an accountant). If you need more users than that, you can contact QuickBooks Online’s customer support to see if you can create a custom plan with custom user access. Otherwise, you’ll need QuickBooks Desktop Enterprise, which supports up to 40 users. For instance, if you choose the Simple Start plan, you’re the only person who can use the software—apart from your accountant, with whom you can share your business’s account at no additional cost.

QuickBooks Online and QuickBooks Desktop starting plans and prices

If you don’t need the advanced features offered by the Desktop plan, the Online version will save you money. QuickBooks Desktop is a good choice if you need specialized features such as inventory tracking or forecasting, and you don’t mind paying more for them. On the other hand, QuickBooks Online does not get burdened with all of the extensive, and often extra features.

Which Is Right for Your Business?

While the numerous options seem intimidating at first, each version of QuickBooks is designed to reach a certain business size and type. The type of business you run qualified business income deduction has a huge influence on which QuickBooks product is right for you. If you’re running a small business, you’ll be comparing QuickBooks Online or QuickBooks Pro.

Invoicing (Winner: QuickBooks Online)

While the features are similar, QuickBooks Desktop offers more functionality, such as the ability to run checks to pay bills and more in-depth customer and vendor management capability. QuickBooks Desktop also offers easy integration with QuickBooks Payments so you can accept online payments from customers. But aside from cloud access, there are other differences between the two applications that we’ll talk about next. You must purchase additional licenses if you want to access it on multiple computers. While you can add cloud access to QuickBooks Enterprise, it involves an additional fee. Offers four plans to accommodate a range of businesses with different needs; each plan limits the number of users, though.

Is QuickBooks Online cheaper than QuickBooks Desktop?

In contrast, QuickBooks Desktop tends to have a steeper learning curve, offers fewer integrations, and has had its previous versions discontinued by QuickBooks. We’ll compare QuickBooks Online vs. Desktop and highlight the differences between each version plus which one is most suitable for collaborating on the go, and which is faster and offers more advanced features. To nudge their customer base towards QuickBooks Online, Intuit announced that QuickBooks Desktop for Mac 2016 would be its last version. The reason, we speculate, is that there is overlap in demand for QuickBooks Desktop for Mac and QuickBooks Online. Therefore, it makes sense to support the Online version instead.This discontinuation means that if you are a Mac user you should probably sign up for QuickBooks Online.