However, existing Pro and Premier users can still renew their subscriptions. Ease of use includes the layout of the dashboard and whether new transactions can be initiated from the dashboard rather than having to navigate to a particular module. Other factors considered are user reviews specific to ease of use and a subjective evaluation by our experts of both the UI and general ease of use.
QuickBooks Online vs. QuickBooks Desktop: Features
We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or a small-business guide to common sources of capital monitor project progress and performance.
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- Only QuickBooks Online includes free access to a comprehensive version of the QuickBooks mobile accounting app, which is one of the best apps in the accounting sphere.
- In contrast, you need to upgrade to Advanced to be able to use QuickBooks Online’s budget vs. actual reporting feature.
- With QuickBooks Desktop, users receive some of the most developed accounting tools on the market.
Not sure which QuickBooks Online plan you need? We can help.
If you go with QuickBooks Desktop Pro or Premier, a payroll add-on is available for an additional monthly fee. While these products will still be available to existing users, QuickBooks Desktop Payroll for Pro how to build a flexible budget variance analysis in excel and Premier will no longer be available for new users to purchase starting on September 31, 2024. QuickBooks Desktop is preferable for companies wanting to manage their books without an internet connection. It’s also the better option for businesses requiring complex inventory accounting features.
Add new QuickBooks Online invoices to Google Sheets spreadsheet rows
While we’re on the topic of invoicing, QuickBooks Online has the superior product, offering six invoice templates and multilingual invoicing in six languages. This requires the software to allow users transitioning from other bookkeeping software to import their chart of accounts (COA), vendors, customers, service items, and inventory items. Ideally, there will be a wizard to walk the user through the import process. This takes into account customer management, revenue recognition, invoice management, and collections.
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. When working with the Desktop version, it’s downloaded right to your computer.
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You also have the option to import products and services into the application to avoid having to re-enter the data. The most notable difference, aside from price, between QuickBooks Online and QuickBooks Desktop is the Online version is cloud-based. The mobile app for Online is robust, and Desktop’s mobile app is so limited, that it essentially functions as a receipt uploader. Working from the cloud means you need an internet connection, so a poor signal or an intermittent connection can be an issue.
For instance, you can set up QuickBooks Online for nonprofits by adjusting the settings, customizing sales forms, and creating a chart of accounts based on Form 990. You can upgrade to any version of QuickBooks Desktop as your needs change. However, converting your data from one desktop solution to another can be a complex process. While there are significant differences between QuickBooks Desktop and QuickBooks Online, both applications offer solid accounting capability for small businesses.
But for most small-business owners in most industries, QuickBooks Online has better automation, better access, and a better price point. QuickBooks is a suite of accounting software developed and marketed by Intuit, designed for small and medium-sized businesses to handle their financial management and automate accounting operations. It provides features that cater to invoicing, expense tracking, payroll management, and tax preparation. The software must have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
While QuickBooks Online and Desktop have their strengths and weaknesses, they ultimately balance out—which makes them tied in terms of overall features. Below we provide a detailed comparison across each feature, where we also determine a winner for each category. QuickBooks Desktop offers more than 100 standard reports that can be customized as needed. Users can simply click on the Reports option to access reports in a variety of categories including Favorites, Business Overview, Expenses and Vendors, Employees, and Sales Tax reports, along with several others.
As I was testing them out, I found QuickBooks Online a lot sleeker, more modern, and easier to navigate than QuickBooks Desktop. Every step was prefaced with a tutorial, guiding me in setting up my company’s profile by prompting me to provide 36 business expense categories for small businesses and startups specific information. 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.