Updated versions are released each year, with new features and functionality added annually. All QuickBooks Online plans have basic mobile accounting features, such as the ability to create and send invoices. However, higher-tiered plans have additional functionality, like the ability to enter bill payments and view reports.

  • As apps continue being released that solved industry-specific problems and connect with online accounting solutions, the desktop version falls further behind in its functionality.
  • However, once you’ve signed up, navigate to your account settings, and you can switch to annual billing to save 10%.
  • Having all the data you need at your fingertips will make it easier for you to help your clients with their finances, give better advice, and file their taxes with the most accurate information.
  • When she’s not busy supporting professionals and their businesses, Rachel enjoys actively participating in the QuickSource accounting community.

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. This feature is particularly useful if you sell and ship products out of your state. Terms, conditions, pricing, special features, and service and support options subject to change without notice.

QuickBooks Online vs Desktop: Customer Support

For the Desktop version, you pay an annual fee starting at $549.99 per year, and the cloud-based option starts at $15 per month. Both versions have mobile apps, but the app for the Desktop version primarily functions as a way to upload receipts, and the Online mobile app is robust in comparison. Basically, what you get in the QuickBooks desktop version you download is what you get, and you only get it in a limited access space. Therefore, the desktop version is built out with in-depth features in specific areas such as payroll, job costing, and inventory systems. While it is great to have all these features in one system, Intuit is no longer developing these features while apps that solve these same problems are constantly being developed.

Four pricing plans for QuickBooks Online are available, ranging from $30 to $200/month (with an additional $45+/month for payroll). Every business is unique, and there may be instances where QuickBooks Desktop may be a better fit. For example, it may be more suitable for businesses with complex inventory management needs or those wanting offline access to their financial data.

The ability to link with other applications can be helpful for many businesses, while it may be a need for others. This is one area where the two products are substantially different. As your business expands, you can easily upgrade to any of the QuickBooks Online options.

  • By not purchasing the Plus edition of the software, you lose the automatic backups, but those can be easily handled by yourself.
  • Since QuickBooks Online is priced as a monthly subscription, it doesn’t require a contract and you can cancel your account at any time.
  • Terms and conditions, features, support, pricing, and service options are subject to change without notice.

Small to midsize businesses that want a desktop solution or need advanced inventory and industry-specific features. Launched prior to the cloud-based era, QBO quickly gained popularity and is now the most widely used online accounting software available. Absolutely not, it never will because Desktop was designed in the 90s and still looks relatively similar to that. But based on the nature of your business and its unique needs, one of these programs is likely to be of more benefit to you than the other.

QuickBooks Online vs QuickBooks desktop: A final decision

Contractors and professional service businesses can use the software to compare revenue by city, customer and job type. QuickBooks Online offers a large selection of reports, but they aren’t industry-specific. Since QuickBooks Online is priced as a monthly subscription, it doesn’t rules for an inventory audit require a contract and you can cancel your account at any time. Additionally, the desktop products are only available as annual subscriptions, making them a bigger commitment than QuickBooks Online. Each option has several advantages, and this guide will explain the differences.

Best Accounting Software for Small Businesses

You just need to select the bills you want to pay from the Pay Bills window, place a checkmark next to the bills, and then select Save & Print. You can switch from QuickBooks Self-Employed to any QuickBooks Online plan—except Advanced. However, the process can be challenging as they are built on different platforms.

” No, no it isn’t. I don’t mind change but I do mind less functionality and a waste of time. You can rest assured that we will work closely with you to create actionable business plans and accurate financial reporting. We offer our toolkit of financial intelligence that will be your greatest asset for business growth. Both are great choices, so consider your budget, and what major advantages appeal to you the most.

How to Record Amazon Sales in QuickBooks Online

(The Enterprise version is overkill for the majority of home-service businesses.) From there, you’ll be prompted to download and install the software before importing your company’s financial information. There are a few situations in which QuickBooks Desktop might make more sense for your home-service business than QuickBooks Online would. One scenario would be if your company offers an extensive array of products and services, and your finances aren’t nearly as straightforward as those of a smaller business. In this case, your business could benefit from the rich selection of features included in QBD. QuickBooks Desktop (formerly known as simply “QuickBooks”) is a version of the accounting software that is installed on an individual desktop computer and primarily used by one person. Businesses have relied on QuickBooks Desktop for decades, and many professional accountants are intimately familiar with the program.

QuickBooks Online vs Desktop: Challenges

However, these versions don’t receive security updates, live support, or access to cloud-based services such as live bank feeds, QuickBooks Desktop Payments, or QuickBooks Desktop Payroll. QuickBooks Desktop Premier Plus and Enterprise plans have industry-specific reports for manufacturing and wholesale, retail, nonprofit, general contractor and professional service businesses, too. For example, nonprofits can use the desktop products to run donor contribution summary reports while manufacturing, wholesale and retail businesses have the ability to forecast product sales.

QBO vs Desktop: Which is Best for Your Accounting Needs?

The application also offers a mobile app that works with both iOS and Android devices. QuickBooks Online includes numerous learning and support resources. A variety of short video tutorials are available as well as on-demand webinars and training classes. One of the best resources is the QuickBooks Online community, where you can connect with other users to share tips, answer questions, and find answers to problems that may arise. Product support can be accessed directly from within the application, where you can ask a question or connect to support personnel.