QuickBooks Desktop vs. Online: Which is Ideal for Your Small Business in 2024?

So, you’re running a small business. As it grows, you might need accounting software to automate various financial processes, eliminate manual data entry, and better manage financial data with your accountant. The standard for small business accounting nowadays is Intuit QuickBooks Online and its desktop version, QuickBooks Desktop.

This guide will compare QuickBooks Online vs Desktop with their key features, pricing, and user-friendliness. We’ll also review which version is best for your business, providing all you need to know when choosing between these powerful accounting software solutions.

Read this guide to learn more.

QuickBooks Desktop vs. Online: An Overview

QuickBooks Desktop

QuickBooks Desktop (or QuickBooks Enterprise) is locally installed software that simplifies accounting processes like expense tracking, bill payment, and payroll processing. It can also help you automate accounts receivable and payable, accounting reports, advanced inventory tracking, and bank reconciliation. Since it’s desktop software, you won’t need an internet connection when using the program.

If your company subscribes to a multi-user license in QuickBooks Desktop, your finance team can collaborate and access files from your company’s dedicated computer. They can also collaborate remotely (multi-user access) if you avail of their cloud access add-on.

QuickBooks Online

QuickBooks Online is a cloud-based accounting software for businesses of different sizes. It can track income and expenses, create invoices, pay bills, and generate financial reports. You can also do tasks like mileage tracking, receipt capture, and expense report generation through the QuickBooks mobile app.

Take a look at our guide on QuickBooks Online’s top features to learn more. The software also offers industry-specific editions, ranging from manufacturing and construction to retail.

QuickBooks Desktop vs. Online: Side-By-Side Comparison

Who is it For?

QuickBooks Desktop
QuickBooks Desktop is for entrepreneurs managing multiple entities since it allows you to manage the books for unlimited companies. It’s ideal if your business has an in-house accountant working on one server computer, allowing them to share financial info with your team. You can also benefit from QuickBooks Desktop if you prefer desktop software and want offline access to your company’s accounting data.

QuickBooks Online
We recommend QuickBooks Online for small businesses wanting cloud-based accounting software and could collaborate remotely. It offers invoicing features and bank reconciliation tools and supports multiple third-party integrations and add-ons that are only available on the online version. To know more, you can check out our guide on picking the right QuickBooks edition for your business.

Key Features

Accounting Reports

QuickBooks Desktop
QuickBooks Desktop offers over 200 pre-built reports, which is more extensive than what QuickBooks Online offers. It includes balance sheets and reports for profit-and-loss, income and expense, A/R and A/P aging, sales tax, payroll, etc. You can combine and check your reports through multi-company reporting if you manage multiple business entities.

QuickBooks Online
QuickBooks Online provides access to more than 100 reports that are beneficial for small business owners. It offers basic accounting reports, including balance sheets, profit-and-loss statements, cash flow statements, and sales reports based on different factors (e.g., by location, class, etc.) Also, you’ll have access to customizable and presentation-ready reports when subscribed to QuickBooks Online Advanced.

Industry-Specific Editions

Both QuickBooks Desktop and Online offer similar industry-specific editions, which include businesses in manufacturing, retail, nonprofit, and wholesale and distribution. However, QuickBooks Desktop specializes in contractor services since it has built-in field service management features necessary for managing job costs, scheduling, and real-time updates from the field. On the other hand, the online version provides fewer industry-specific reporting features.

QuickBooks Desktop – Additional Features

Integrated QuickBooks Payments
QuickBooks Desktop users can access built-in tools like QuickBooks Payments, which are otherwise premium add-ons in its online version. It allows you to process invoice payments online via credit card, ACH, and eChecks. You can also set up payment reminders and recurring invoices so your customers can pay you automatically.

Advanced Inventory Management
QuickBooks’ desktop version provides more robust inventory tracking features than its online version, allowing you to see in real-time what’s in stock, each item’s location, their total amount, and which items are on order. You can check your inventory more efficiently with multi-level categorization and tools like serial and lot number tracking.

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QuickBooks Online – Additional Features

Professional Invoicing and Payment Processing
QuickBooks Online provides invoicing tools than its desktop version, allowing you to be paid efficiently. You can create invoices from scratch or customize templates by adding your company’s name and brand logo. You can process payments directly from your invoice by adding a payment button and setting up automatic payment reminders to bill your customers seamlessly.

QuickBooks Live Tax
One unique feature that’s only available on the online version is the QuickBooks Live add-ons, including Live Tax. By letting experts from TurboTax access your financial info on QuickBooks, they can help prepare you for tax time, allowing you to maximize deductions and focus on your business more. QuickBooks Live Tax mainly supports business types like sole proprietors, S-corps, and partnerships.

Note: For a pre-accounting add-on to QuickBooks Online, consider Envoice. Our AI-driven receipt scanning solution (SmartScan), paired with ExactExtract and backed by human-in-the-loop review, saves you time and gives 99.9% accuracy in extracted data. Contact us today to streamline your data extraction process!

Ease of Use

QuickBooks Desktop
QuickBooks Desktop has a dated interface that can be hard to set up and use. The software can be challenging for new users and those without prior accounting knowledge. We recommend getting a dedicated account team to assist in setting up your organization, inventory, and other features. Once the program is configured correctly, your team can use it more effectively.

QuickBooks Desktop offers add-ons like cloud access (for remote team collaboration) and automatic data backups. Since both come at additional fees, this version may end up costing you more.

QuickBooks Online
When comparing QuickBooks Online vs Desktop in terms of user-friendliness, QuickBooks Online is by far the easiest accounting solution to use. It has an intuitive interface where you can access its key accounting features. It also has data visualization tools that help you understand financial data quickly.

Since it’s cloud-based, you and other users can access your company account anywhere with a stable internet connection. This is compared to QuickBooks Desktop, where you’ll need to install the QuickBooks Desktop app on multiple computers connected to a server hosting all company files.

Invoicing

QuickBooks Desktop
QuickBooks Desktop allows you to create an invoice from scratch, a purchase order, or an estimate. You can set up recurring invoices, accept short payments from customers, and process payments on your invoice via QuickBooks Payments by adding a payment link. You can monitor the status of your invoices through an income tracker.

However, it doesn’t allow you to personalize your invoice more than QuickBooks Online offers and doesn’t have templates to make your invoicing tasks faster.

QuickBooks Online
Unlike its desktop version, QuickBooks Online has an easy-to-use invoicing feature, allowing you to create invoices from scratch and add personal elements like company logos and colors. You can choose from professional invoice templates and customize them tailored to your business. The online version can also calculate sales tax in every jurisdiction where it’s collected automatically.

Like the desktop version, you can set up recurring invoices and automatic payment reminders in QuickBooks Online.

Integrations

QuickBooks Desktop
QuickBooks Desktop is built-in with premium apps available only on QuickBooks Online Advanced or as add-ons. These include QuickBooks Payroll, Payments, and HR features exclusive to the desktop version. It also has QuickBooks Time, allowing employees to track time from wherever they work.

In terms of third-party platforms, QuickBooks Desktop has limited integrations (only over 200 apps compared to Online’s 750+ apps). Some notable platforms include Salesforce CRM, Expensify, Webgility, and HourTimesheet.

QuickBooks Online
Compared to its desktop version, QuickBooks Online has more extensive third-party integrations, allowing you to automatically sync data between platforms. It supports various CRM software, POS systems, eCommerce stores, payroll systems, and time-tracking tools. These include third-party applications like Amazon Business, Square, PayPal, Shopify, and eBay.

Pricing

QuickBooks Desktop
QuickBooks Desktop has the following pricing plans. To get custom pricing, you can contact QuickBooks’ sales team:

• Gold – The Gold plan starts at $1,922 annually and is for businesses that need the platform’s basic functionalities and reporting tools. You can collaborate with up to 30 users and have access to QuickBooks Payroll, advanced reporting, QuickBooks Priority Circle support, and online backup data storage.
• Platinum – The Platinum plan costs $2,363 annually and is for businesses looking for industry-specific features. It has everything from Gold, plus multi-company management, advanced inventory and pricing features, and access to automated workflows for approving bills and purchase orders.
• Diamond – The Diamond plan starts at $4,668 yearly and is for enterprises needing additional users and the Salesforce CRM integration. It offers everything from Platinum, including up to 40 simultaneous users, and access to QuickBooks Time Elite and Salesforce CRM Connector at an additional fee.

Note: Since QuickBooks Desktop Pro has been discontinued, it won’t be available for new users. The annual subscription for existing users will increase to $999/user. Contact QuickBooks’ sales team to know more.

QuickBooks Online
QuickBooks Online offers the following pricing plans (includes a 30-day free trial if you pay monthly or a 50% discount if you buy a subscription for the next three months).:

• Simple Start – The Simple Start plan costs $35 monthly and is recommended for small businesses needing basic features to speed up their accounting tasks. It offers features for invoicing, bookkeeping, expense tracking, cash flow management, and sales tax tracking.
• Essentials – The Essentials plan starts at $65 monthly and is great for growing businesses looking to connect more sales channels and track time. It offers everything from Simple Start, plus the ability to record multiple currencies, two more users, and time-tracking features.
• Plus – The Plus plan costs $99 monthly and is ideal for enterprises needing inventory and project profitability tracking features. It has everything from Essentials, including the ability to connect all sales channels and features for job costing, inventory management, and financial planning.
• Advanced – The Advanced plan costs $235 monthly and is recommended for large enterprises needing to connect multiple users. It offers everything from Plus, including 25 users, Excel data sync, batch invoicing, workflow automation, and 24/7 support and training.

Note: If you want a platform that seamlessly integrates with QuickBooks to centralize your team’s communication, try Envoice. You can add your entire team at no cost, enhancing team efficiency and ensuring everyone is informed with real-time updates. Sign up for a 14-day free trial today!

Claim to Fame

QuickBooks Desktop
When comparing QuickBooks Online vs Desktop, the desktop version offers better inventory tracking and advanced reporting features. Since it’s installed locally on your computer, it provides more stability than QuickBooks Online, which requires a strong internet connection. Its plans also include premium add-ons like Payroll, Time, and Payments.

QuickBooks Online
QuickBooks Online excels as a cloud-based accounting software, allowing your team to collaborate on different devices. It is quick to set up and follows monthly subscription pricing plans compared to QuickBooks Desktop’s annual pricing. It’s also more intuitive, provides better invoicing features, and has more extensive integrations.

Conclusion

Comparing both QuickBooks Online vs. Desktop can be tricky, especially when both platforms offer identical features. However, you can benefit from QuickBooks Desktop if you manage books for multiple companies and want advanced pricing, order management, and inventory tracking features. It’s also great to have an in-house team collaborating on one computer network.

On the other hand, QuickBooks Online is better for small and medium-sized businesses wanting a cloud-based accounting solution. It has excellent tools for accounts payable, bank reconciliation, and expense tracking. It’s also ideal if your financial team needs remote collaboration and robust integration support.

However, if you need an AI-driven pre-accounting tool to pair with QuickBooks, we recommend Envoice. It offers tools for automating repetitive tasks, supports multi-level approvals, and can be accessed anywhere since it’s hosted in the cloud. It also integrates with popular platforms, including QuickBooks Online, Microsoft Dynamics 365, Xero, and Sage Business Accounting.

Ready to streamline bookkeeping and enhance productivity with Envoice? Try our automation features today and transform how you manage your books. Contact us to get started!