QuickBooks Desktop is an annual subscription, starting at $549.99 per year, which may be cost-prohibitive for small businesses or cash-strapped startups. While the Desktop version has app integrations, it doesn’t have near as many as the Online version. There are over 200 options instead of the 650-plus to its cloud counterpart. When signing up for QuickBooks Online, it only gives options for paying monthly. However, once you’ve signed up, navigate to your account settings, and you can switch to annual billing to save 10%. All Online plans include receipt capture, QuickBooks support and more than 650 app integrations with apps such as PayPal, Square and Shopify.

QuickBooks Online vs. Desktop features

You can do things like automatically add customers to or create receipts in QuickBooks when payments happen in other apps, or track new QuickBooks invoices or payments in another app. Here are a few pre-made workflows to show you what’s possible, but you can use Zapier to connect QuickBooks to almost any app you use. If your accounting software doesn’t register changes in real time, it could lead to costly delays.

I’ve deduced that it comes down to a stubborn user base—one that refuses to let go of QuickBooks Desktop in favor of its cloud-based successor. Granted, most people agree QuickBooks Online is the better option, but the old-timer is still somehow in the running. Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features.

Transitioning between the cloud and the desktop version

This section breaks down the core feature differences to help you make the right choice for your business. Everything from the installation screen to the lagging UI gave me flashbacks to the 1998 dial-up tone on my family’s Pentium III computer. There were also fewer prompts of the tutorial variety, but I was pleasantly surprised by the number of features packed into it. One of the most common complaints about QuickBooks Desktop is its steep learning curve. The online version of QuickBooks is much easier to use than the desktop version. While QuickBooks Online and QuickBooks Desktop offer contact management, how to figure shorts and over entries in accounting only QuickBooks Desktop allows you to manage and track leads as well as contacts.

Why do accountants not like QuickBooks Online?

Forbes suggests Desktop is a good fit for businesses comfortable with accounting principles and who don’t require constant collaboration. Consider your team’s technical proficiency and comfort level with accounting software when making your choice. If you’re interested in a career focused on helping businesses optimize their financial software, explore career opportunities at FinOptimal. If real-time collaboration and access from anywhere are top priorities, Online is a strong contender. Imagine updating your books from your phone while on your commute—QuickBooks Online makes that possible.

You should be reviewing your profit and loss report as well what is payroll compliance as your balance sheet report on a regular basis. Your business is unique, but your routine bookkeeping tasks are going to be similar to many other businesses such as consultants/coaches, dog walkers, and photographers. These types of businesses could easily benefit from either QBDT or QBO. In contrast, QuickBooks Online files are automatically backed up on a nightly basis to ensure that there is no loss of data. 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.

That being said, large businesses may be ok with sacrificing some ease of use for advanced capabilities. The dashboard is super intuitive with large, easy-to-understand charts, and the mobile app is similarly easy to use. 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. I find myself leaning toward the futuristic solution, which makes QuickBooks Online my preferred choice of accounting software (my Ralph Macchio).

1. How features differ between QBDT and QBO tend to be in looks, functionality, and comprehensiveness.
2. 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.
3. Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022.
4. Understanding these will help you decide if it’s right for your business.
5. Add payroll to QuickBooks Online starting at $45 per month, or to Desktop starting at $50, plus $2 per employee, per month.
6. But local installation means more control over your data, who has access, and overall general security of your business information.

This makes it a flexible option, allowing you to scale your plan as your business grows. This subscription-based pricing can be attractive to startups and small businesses wanting predictable monthly expenses. Plus, as Fit Small Business points out, QuickBooks Online is generally more affordable than the desktop version for companies with multiple users. Each user is typically covered under the main subscription, eliminating the need for additional user licenses, bottom line a common cost with desktop software.