QuickBooks Online VS QuickBooks Desktop

At A Glance Comparison

In the battle between QuickBooks Online and Desktop, it’s best to focus on the differences between the two accounting software options since they are so similar.

In comparison with QuickBooks Desktop, QuickBooks Online is cloud-based, cheaper, easier to use, supports more integrations, and is unlikely to be discontinued by QuickBooks.

In contrast, QuickBooks Desktop tends to have a steeper learning curve, offers fewer integrations, and has had its previous versions discontinued by QuickBooks. QuickBooks Pro and Premiere will also discontinue sales to new users on July 31, 2024.

Businesses that have purchased one-time licenses of the locally-installed QuickBooks Desktop versions that have been sunset can still use the software’s accounting features. 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.

Where QuickBooks Online Wins

What stands out most about QuickBooks Online when compared to Desktop is that QBO is cloud-based accounting software. Because of this, QuickBooks Online is much easier to use and has many more integrations and time-saving invoicing automations, such as auto-scheduling. While we’re on the topic of invoicing, QuickBooks Online has the superior product, offering six invoice templates and multilingual invoicing in six languages.

Not only is QuickBooks Online easier to use, but it offers additional support — for a fee. QuickBooks Online users can sign up for QuickBooks Live Bookkeeping to assist with getting the books up to date and managing bookkeeping tasks. As far as other add-ons, QuickBooks Online integrates with over 750 business apps and programs — well over twice the number of integrations you’ll find with Desktop.

Here’s a breakdown of where QuickBooks Online shines:

Where QuickBooks Online Falls Short

While QuickBooks Online boasts many of the features you’ll find with Desktop, some of its features, such as inventory management, aren’t quite as advanced. Additionally, you won’t find the industry-specific features and reports that you’ll get if you sign up for Desktop.

QuickBooks Online supports up to 25 users, which does fall short of the 40 users supported under QuickBooks Desktop.

Where QuickBooks Desktop Wins

Compared to QuickBooks Online, QuickBooks Desktop offers more advanced accounting. QuickBooks Desktop also offers different versions of its software for certain types of businesses (construction, nonprofits, manufacturing, etc.). These versions offer industry-specific reports, in addition to 50 more reports than you’ll find on QuickBooks Online.

QuickBooks Desktop also has several additional features you won’t find with QBO, including sales orders and lead management. Because it is locally installed software, you also have more control over keeping your financial data secure.

Here’s where QuickBooks Desktop stands out:

Where QuickBooks Desktop Falls Short

Perhaps the biggest area where QuickBooks Desktop falls short is that its Pro and Premier versions will soon be discontinued for new users. While QuickBooks Enterprise will still be an option, this is powerful software with an expensive price tag that will be too much (in terms of features and pricing) for most small businesses.

While QuickBooks Desktop is great for users who prefer locally-installed software, users will have to pay additional fees for cloud hosting, adding to the already expensive cost.

QuickBooks Desktop is also not a great choice for accounting newbies, as the UI is quite unintuitive and has a steep learning curve. And while Desktop has a respectable number of integrations when compared to other accounting software, it falls far short of what QBO offers its users.

QuickBooks Online VS QuickBooks Desktop: Pricing Comparison

QuickBooks Online and QuickBooks Pro have two different pricing structures.

QuickBooks Online has a monthly SaaS pricing structure. Four pricing plans for QuickBooks Online are available, ranging from $35 to $235/month (with an additional $50+/month for payroll).

QuickBooks Desktop has options for monthly or yearly subscription pricing. The prices for QuickBooks Desktop vary depending on which version of the software you opt for: QuickBooks Pro, QuickBooks Premier, or QuickBooks Enterprise.

QuickBooks Pro is geared toward small to medium businesses. Unfortunately, pricing is no longer disclosed and you will need to contact QuickBooks Sales for more pricing details. At the time of our last review, pricing started at $349.99/year for a single user.

QuickBooks Premier is suited for medium and niche industry businesses. Similar to QuickBooks Pro, pricing is not disclosed. Pricing at the time of our last review started at $549.99/year for a single user.

QuickBooks Enterprise is designed for large businesses or small enterprises and starts at $1,481/year or $142/month. You can add payroll, more users, and cloud hosting for additional fees.

It’s hard to say which software is cheaper because there are so many variables. But there are some general guidelines to know which version might be the one for your business (and your budget).

• QuickBooks Desktop Pricing: QuickBooks Pro is likely the better option if you have a single user and want locally installed software with advanced features. However, the extra costs for QuickBooks Desktop add up quickly, particularly if you have more than one user.
• QuickBooks Online Pricing: If you have multiple users and use live bank feeds, QuickBooks Online will probably be a better bet.

We recommend crunching the numbers to decide whether the online or desktop versions of QuickBooks are right for your specific business.

QuickBooks Online VS Desktop: Features

Both QuickBooks Online and QuickBooks Desktop offer a large number of features. While they share many of the same features, QuickBooks Desktop’s features are often more developed, except when it comes to invoicing.

Even though QB Desktop has more comprehensive features in general, there are some key features that only QuickBooks Online has, such as bookkeeping support. So, it comes down to which features your business values most.

Here’s a breakdown of how each program’s specific features compare.

Which Is Best For My Business?

Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features. Each software has its highs and lows.

With QuickBooks Online, users receive many of the same great features while gaining the mobility of cloud-based software. QuickBooks Online is easier to use and has more automations, more integrations, and better invoicing. The downsides are the lack of sales orders, lead management, and other complexities that loyal Desktop users may miss (such as customizable letter templates, a built-in calendar, and even spellcheck).

With QuickBooks Desktop, users receive some of the most developed accounting tools on the market. The software offers comprehensive features, unique touches (such as lead management and sales orders), industry-specific versions of the software, and the potential to be more secure.

The downsides are that QuickBooks Desktop lacks the mobility of QBO, has few automations and limited payment gateways, and has a steep learning curve (although the software is well-organized and gets easier to navigate with time).

Choose QuickBooks Online If…

• You want software that is easy to use and learn
• You want to access your accounting remotely with mobile apps
• You want time-saving automations and integrations
• You want to use payment processing integrations for online invoice payments
• You need support for multi-currency and multilingual invoicing

Choose QuickBooks Desktop If…

• You want locally-installed software accounting software
• You need the industry-specific features of QuickBooks Premier or QuickBooks Enterprise
• You need sales orders
• You have very complex accounting

Ultimately, your specific business’s size, type, and needs are the real deciding factors in determining which of the QuickBooks versions is best for your business. Just remember, you will need to make a decision quickly if you want QuickBooks Desktop Pro or Premier, as sales of these products will be discontinued this year.

While QuickBooks products work for many businesses, they aren’t the best choice for all businesses. If neither of these options seems to be the right fit or you’re just exploring your options, make sure to check out our list of the best accounting software for small businesses for more great options.