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When you upgrade to Enterprise, QuickBooks Desktop’s most comprehensive plan, you’ll gain access to advanced inventory features, including barcode scanning and serial number tracking. Because QuickBooks Online is cloud-based, it is a great option for those who need QuickBooks access while not in the office. Despite the platform’s ubiquity, however, many business owners remain uncertain about the differences between QuickBooks Desktop and QuickBooks Online. Here, we’ll detail everything you should know about the two versions, including their core functions, pricing tiers, hosting location, extra features and latest updates. Every business has unique needs and demands that make one accounting software version a better fit than the other. Nevertheless, you may use the following general guidelines when deciding on the best product for your business.
When you move to QuickBooks Online, you’ll create a new account and login. You can migrate your business and payroll data to QuickBooks Online and keep a copy of the original file for your records. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Does QuickBooks Online sync with your QuickBooks Desktop version?
Moreover, QuickBooks Online is generally easier to use and navigate than QuickBooks Desktop because it has a more streamlined and intuitive user interface. Both the online dashboard and mobile app, with their clear and straightforward graphics, are remarkably easy to understand and use.Conversely, QuickBooks Desktop was designed with accounting professionals in mind. It has a flowchart-style menu, a customizable user interface, and shortcuts for frequently used features. QuickBooks Desktop is on-premises accounting software with optional remote access through an internet connection. QuickBooks Desktop versions are Pro Plus, Premier Plus, and Enterprise, which are sold as yearly editions with an annual price that varies by the number of users.
Get things done efficiently with third-party apps that specialize in specific tasks like expense tracking, inventory management, and more. QuickBooks Online offers a streamlined cash flow management process, which means your clients will be able to get an accurate snapshot of the financial health of their company. Automated features like recurring transactions, overtime pay u s. department of labor bank feeds, and receipt capture allow your clients to get things done fast. They’ll be able to get crucial cash flow data in real time with minimal data entry, leaving more time to focus on other aspects of their company. While QuickBooks Online offers project management features, it doesn’t have the same level of customization options as QuickBooks Desktop.
Unless you’re an accountant, the learning curve will likely be a little higher for you than it would with QuickBooks Online. We also don’t recommend QuickBooks Desktop to Mac users, since there’s just one desktop-based plan for Mac users. This plan, QuickBooks Desktop for Mac, has the same features as QuickBooks Desktop Pro Plus, the most basic desktop-based plan. In other words, Mac users can’t scale up their software from one plan to the next as they add software users. All QuickBooks Online plans include good reporting options, with the Advanced plan offering the most comprehensive reporting options, including key financial metrics such as revenue and cash flow.
Intuit,
However, Intuit’s push for its QuickBooks Online software and discontinuation of its Desktop offering in the UK has caused users to worry about possible sunsetting. QuickBooks Desktop is better for small to large-sized businesses with complex accounting needs requiring more customizable features. Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features. Granted, you don’t have to be an accountant to learn QuickBooks Desktop either, but if you are new to accounting, you will need a lot of time to learn the program.
Plus, share real-time access to the books with clients and your team members. CPAs and bookkeepers use QuickBooks Online Accountant software to access or prepare their clients’ accounting. With QuickBooks Desktop, you must make an Accountant’s Copy of your data file and send it to your ProAdvisor. The copy will allow you to continue to work on transactions in the current period while your accountant makes adjustments to past periods. It’s an acceptable system but isn’t nearly as convenient as sharing your books through QuickBooks Online.
Inventory Management (Winner: QuickBooks Desktop)
As your business expands, you can easily upgrade to any of the QuickBooks Online options. You can also enhance your functionality by using other Intuit products like QuickBooks Time or QuickBooks Point of Sale. In this guide, we’ll help you understand what each version is capable of, what type of business is best for each version of QuickBooks, and the main differences between these products. Even if your computer crashes, all of your accounting documents in QuickBooks Online are safe.
- Every business has its own needs and demands that make one accounting software version or the other a better fit.
- In the battle between QuickBooks Online vs Desktop for pricing, QuickBooks Online is a more scalable choice since you can find a plan based on the number of users you have without paying an additional fee.
- QuickBooks Online also allows you to include a pay now button right in the invoice.
- QuickBooks can help – but it does best when properly integrated with apps that offer functionality QuickBooks lacks – like time tracking with Workyard.
- There are many more integrations with QuickBooks Online, including business productivity and sales apps such as CRMs.
- The software receives 4.4/5 (based on 1,800+ reviews) on Software Advice and 4.3/5 (based on 1,700+ reviews) on G2.
However, you are responsible for filing your taxes and paying the right amount to the IRS. If your business fails to issue Form 1099-NEC by the deadline, the penalty can vary from $60 to $310 per form in 2024. The penalty will vary depending on how long you issued the form after the deadline.
Want to migrate your own data?
For more than two decades, QuickBooks has been the de facto accounting software for small businesses across a vast number of industries. From restaurants to retailers and plumbers to painters, professionals in nearly every line of business have benefited from QuickBooks. And while for many years QuickBooks was limited to desktop computing environments, there now exists an alternate version of the software that’s accessible from any internet-connected device. Whether your home-service business is just getting off the ground or if you’ve been operating for years, a proper accounting system is essential to ensuring the fitness of your finances. By using the right tool to monitor your company’s money, you can quickly track your income, see what you’re spending, and find out whether your customers are paying their bills on time.
QuickBooks Desktop vs. Online: The differences
Your business has to provide a 1099 form to the IRS and the independent contractor. The deadline to submit 1099-NEC forms to nonemployees is Jan 31, and the deadline to file with the IRS will vary depending on when taxes are due. You must file Copy A with the IRS and provide Copy B to the contractor so they can file their taxes. QuickBooks Online and Desktop both allow tracking of partial payments and will update the project and subsequent invoices automatically. Both versions have all the core features you would expect, but the difference comes into play when looking at adjustments and flexibility. Yes, you can migrate your data from QuickBooks Desktop to QuickBooks Online.
With QuickBooks Online, you can add QuickBooks Online Payroll starting at $45/month. 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). Generally, the business you work for will not withhold taxes from you under a W-9.
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