QuickBooks Online vs QuickBooks Desktop 2023

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). One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022. However, the QuickBooks Desktop app is a very pared-down version of the desktop and is poorly rated.

1. However, if you’re not a Mac user, you can choose from all three QuickBooks Desktop  plans.
2. 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.
3. In the past, customers could choose between annually renewing plans and single-purchase software with a license that stayed valid for three years.
4. This plan, QuickBooks Desktop for Mac, has the same features as QuickBooks Desktop Pro Plus, the most basic desktop-based plan.
5. That being said, large businesses may be ok with sacrificing some ease of use for advanced capabilities.

While QuickBooks Online offers project management features, it doesn’t have the same level of customization options as QuickBooks Desktop. For instance, QuickBooks Desktop allows you to create customized job costing reports tailored to specialized industries, including manufacturers, contractors, and retailers. We developed an internal case study to evaluate the accounting software we review subjectively. Using the data we gathered from this case study, we are able to compare QuickBooks Online and Desktop across several key categories, such as pricing, ease of use, general features, A/P, A/R, and banking. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs.

Why is QuickBooks Online more suitable for most companies than QuickBooks Desktop?

No matter which version of QuickBooks Desktop you’re using, you can switch to QuickBooks Online quickly and seamlessly. With our online migration tool, you can move all your data or move only what’s key—like balances and specific lists. If you need help, we can migrate your data for you at no additional cost. For those customers that choose to stay on Desktop Plus subscriptions, we’ll continue to focus on product maintenance and security. The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.

Payroll: Tie

QuickBooks Online offers many advantages over QuickBooks Desktop, such as cloud accessibility, more convenient file sharing and collaboration, scalable plans with varying features, and a functional mobile app. 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.

Online Plus and Payroll Premium Bundle

QuickBooks Online supports up to 25 users, which does fall short of the 40 users supported under QuickBooks Desktop. 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. Our complete QuickBooks Online vs. Desktop comparison covers key differences, pricing, features, and usability, so you can easily decide whether QuickBooks Online or QuickBooks Desktop is right for your business. Some accountants dislike QuickBooks Online’s limited functionality, limited report customization, and dependency on the internet.

For $27.50 per month for the first three months, then $55 per month after that, get up to three users, manage and pay bills and track time with its Essentials plan, which is its most popular plan. Upgrade to Plus for $42.50 per month for the first three months, then $85 per month afterward, and you will receive access for up to five users, inventory tracking and the ability to track project profitability. The two versions are independent of each other, which means the data you enter on Desktop doesn’t sync to the Online version and vice-versa. QuickBooks Online and QuickBooks Desktop operate on true double-entry accounting principles and have both accrual and cash-basis accounting.

QuickBooks Time

Both versions offer automatic negative confirmation syncing with your bank so you can categorize transactions. Add payroll to QuickBooks Online starting at $45 per month, or to Desktop starting at $50, plus $2 per employee, per month. When signing up for QuickBooks Online, it only gives options for paying monthly.