QuickBooks Desktop vs. QuickBooks Online: Which One is Right for Your Business?

Disclaimer: This post is meant for informational purposes only and should not be taken as legal, business, or tax advice. Please consult with your accountant or bookkeeper for more information based on your specific situation.

One of the most common questions we hear from new business owners is: Should I use QuickBooks Desktop or QuickBooks Online?

While there is no one-size-fits-all choice, a better option may be available based on your specific business needs. In this blog post, we’ll go over the pros and cons of each and help you determine which one may be a better fit for your business.

QuickBooks Desktop: Pros & Cons

QuickBooks Desktop (QBD) is a locally installed application that runs on your computer. It’s well-suited for businesses that require advanced accounting features, detailed customization, or industry-specific tools.

Pros of QuickBooks Desktop

• Advanced features and control: Offers more flexibility for modifying transactions, creating detailed custom reports, and managing complex accounting tasks.

• Faster processing: Since it’s installed directly on your device, QBD typically processes large data files better than the online version.

• Robust payroll tools: Payroll on the desktop version offers more control and customization.

• Sales tax customization: Allows more manual control over how sales tax is applied and reported, which is especially helpful for businesses operating in multiple jurisdictions.

• Better for inventory-based businesses: Advanced inventory tracking, multi-location tracking, and job costing features make QBD a strong option for product-based businesses.

• Industry-specific editions: QBD offers editions tailored to specific industries, including construction, manufacturing, non-profits, and retail.

• Offline access: Files can be accessed without an internet connection.

Cons of QuickBooks Desktop

• Limited accessibility: QuickBooks Desktop can typically only be accessed from the computer it's installed on.

• Single-user limitations: Only one user can access the file at a time unless you upgrade to a multi-user license.

• Steeper learning curve: More advanced functionality means it may be more difficult for new users to learn.

• Fewer integrations: Compared to QBO, Desktop has fewer third-party apps and automation tools.

• Manual backups and updates: Regular backups and software updates must be done manually.

QuickBooks Desktop is great for bookkeepers, accountants, or business owners with more technical experience who want advanced tools, industry-specific versions, and full control over their data.

QuickBooks Online: Pros & Cons

QuickBooks Online (QBO) is a cloud-based software and is accessible from any device with an internet connection. It is more beginner-friendly and allows for easier collaboration.

Pros of QuickBooks Online

• Remote access: Because it’s cloud-based, you can access your books from your desktop, laptop, tablet, or smartphone.

• Multiple users: QBO includes up to 25 users, making it great for collaboration.

• Bank account integration: You can connect your bank account to automatically import transactions, reducing manual entry and saving time.

• Mobile app: The QBO mobile app makes it easy to view your account, manage invoices, track expenses, and scan receipts from your phone.

• App integrations: QBO connects with over 750 third-party apps, from CRM systems to e-commerce platforms, time-tracking tools, and more.

• Automatic cloud backups: Your data is saved automatically in the cloud, so there’s no need to worry about losing your files.

Cons of QuickBooks Online

• Requires internet access: You must have a reliable internet connection to access your books.

• Less customization: Some advanced features and customizations found in Desktop are not available in QBO.

• Limited payroll control: QBO Payroll doesn't offer the same level of customization and reporting as the Desktop version.

If your business doesn’t require advanced tracking, customization, and reporting features, we typically recommend QuickBooks Online for its ease of use, bank integration, and collaboration ability.

Support for QuickBooks in Bellingham, WA

At Summit Bookkeeping, our team is experienced in both QuickBooks Desktop and Online. Whether you’re a new business setting up your books for the first time or a well-established company looking for expert support, we’re here to make sure your accounting system runs smoothly.

For clients using QuickBooks Desktop, we offer flexible support options. We can either access your QuickBooks file remotely using secure third-party software or work directly on a company-provided device.

Looking for help with bookkeeping in QuickBooks Desktop or Online? Give us a call at (360) 756-5020 for a discovery call to see if we’re a good fit for your business needs.

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