QuickBooks Online is a cloud-based software that can be accessed anywhere with an internet connection, while QuickBooks Desktop is on-premise—meaning it can only be accessed from the computer where it is installed. QuickBooks Online offers four scalable plans and a user-friendly interface, making it suitable for most businesses, whereas QuickBooks Desktop is available in three business editions, Pro Plus, Premier Plus, and Enterprise.
Our QuickBooks Online vs Desktop comparison will help you decide which product is right for you based on pricing, features, ease of use, and more:
- QuickBooks Online is great for most businesses, especially those managing their own accounting or working with a remote accountant
- QuickBooks Desktop is suitable for businesses preferring the stability of desktop software and requiring advanced functionality, like inventory assembly management and industry-specific features
QuickBooks Desktop Pro Plus and Premier Plus will no longer be available for new users after July 31, 2024. While QuickBooks has not announced any plans for discontinuing Pro and Premier for existing users as of that date, we anticipate it will likely end support after two or three years. You can explore QuickBooks Enterprise as an alternative or consider QuickBooks Online, which we believe is the more ideal accounting solution for most businesses.
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. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface. We immerse ourselves in every platform we review by exploring the features down to the finest nuances.
We have an extensive history of reviewing QuickBooks products, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different QuickBooks products compare with each other and how they work in real-world scenarios.
QuickBooks Online vs Desktop: At-a-Glance Comparison
QuickBooks Online | QuickBooks Desktop | |
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4.4 ★ | 4.1 ★ | |
Pricing | $30 to $200 per month | $549.99 to $1,410 per year for one user |
Number of Users Included | 1 to 25 | |
Free Trial | ✕ | |
Discount | 50% for three months | ✕ |
Money-back Guarantee | ✕ | 60 days from the purchase date |
Accessibility | Any device from anywhere with internet | Local access on installed PC |
Advantages Over the Other |
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Ease of Sharing with External Accountants | Cloud sharing | Create an Accountant’s Copy |
Scalability | More scalable than QuickBooks Desktop; higher plans include additional users | Not as scalable as QuickBooks Online; requires additional fee for each extra user |
Mobile App | Android and iOS; has more features than QuickBooks Desktop, such as invoicing and payment processing | Android and iOS; limited to receipt capture and mileage tracking |
Ease of Use | User-friendly cloud-based interface | May require additional training |
Customer Support | Phone (callback unless you upgrade to Advanced), email, live chat, chatbot, and self-help resources | Phone (callback unless you upgrade to Enterprise), email, live chat, chatbot, and self-help resources |
Use Cases and Pros & Cons
User Reviews: Tie
QuickBooks Online | QuickBooks Desktop | |
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Average Rating on Third-party Sites | ||
Users Like |
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Users Dislike |
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While QuickBooks Desktop has a slightly higher average user rating than QuickBooks Online, we consider this criterion a draw since both solutions received a fair share of positive and negative comments.
Many satisfied QuickBooks Online users appreciate that they can access the program from any internet-enabled device. Some commented that it’s easy to add vendors and customers and share files with their bookkeepers—and we couldn’t agree more. The cloud accessibility plus the user-friendly interface makes QuickBooks Online easier to use than QuickBooks Desktop.
Others mentioned the bank account reconciliation and invoicing features are excellent. QuickBooks Online is on par with Desktop in terms of banking, but we believe that the cloud-based version is better for professional invoicing.
On the flip side, some complained that QuickBooks Online can’t manage multiple companies in a single account and that it lacks assembly management features. Others are also unhappy that they couldn’t easily contact QuickBooks Online’s customer support. I’ve also had some not-so-great experiences with QuickBooks’ support, but there are occasions when they manage to resolve things well—and that depends greatly on the assigned agent.
As of this writing, here’s how QuickBooks Online is rated by popular review sites:
QuickBooks Desktop gets more praise for strong functionality, such as project costing and advanced inventory accounting. Desktop offers inventory tracking features unavailable in QuickBooks Online, including lot and bin tracking and barcode scanning. Additionally, some users like that QuickBooks Desktop allows them to customize, memorize, and schedule reports easily. QuickBooks Desktop indeed has advanced reporting features, but you must upgrade to Advanced to access them.
Those who have left negative reviews dislike that it doesn’t offer many third-party integration options. Further, one user said that QuickBooks Desktop is more expensive than QuickBooks Online, especially if you need multiple users, which aligns with our evaluation.
QuickBooks Desktop has the following average scores on top review sites:
Plans & Pricing: QuickBooks Online Wins
QuickBooks Online | QuickBooks Desktop | |
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Monthly Pricing |
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Maximum Number of Users |
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Free Trial | 30 days; can’t be combined with the discount below | ✕ |
Discount | 50% off for three months, unless you sign up for the free trial | ✕ |
Money-back Guarantee | ✕ | 60 days after the purchase date |
QuickBooks Online wins for pricing because it’s the more scalable choice. This means you can find a plan based on the number of users and features you need without paying an additional fee. It’s ideal for businesses that prefer a monthly vs annual subscription.
If you’re interested in QuickBooks Online, check out our comparison guide of QuickBooks Online plans to help you decide which is best for you.
If you prefer QuickBooks Desktop, we compared the different QuickBooks Desktop products to help you pick the right solution:
Features: Tie
QuickBooks Online and Desktop share many similarities, including income and expense tracking, bank reconciliation, accounts payable (A/P) and accounts receivable (A/R) management, and reporting. We consider them tied in terms of features, as they are both robust accounting software, and they have their own strengths and weaknesses.
QuickBooks Online | QuickBooks Desktop | |
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Invoicing | ★★★★★ | ★★★★ |
Project Accounting | ★★★★ | ★★★★★ |
Class & Location Tracking | ★★★★★ | ★★★ |
Inventory Management | ★★★★ | ★★★★★ |
Industry-specific Editions | N/A | ★★★★★ |
Mobile Accounting | ★★★★ | ★ |
Payroll | ★★★★★ | ★★★★★ |
Integrations | ★★★★★ | ★★★ |
Assisted Bookkeeping | ★★★★★ | ★★★ |
★★★★★: Excellent
★★★★: Very good
★★★: Good
★★: Fair
★: Poor
N/A: Feature is unavailable
QuickBooks Online wins because it offers more professional-looking and customizable invoices than QuickBooks Desktop. Also, it allows you to calculate sales taxes automatically to apply to an invoice based on the customer’s address. This feature is particularly useful if you sell and ship products out of your state.
Here are some invoices created in QuickBooks Online and Desktop:
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.
Additionally, all versions of QuickBooks Desktop allow you to set up cost estimates for projects and then compare them to actual expenses. In contrast, you need to upgrade to Advanced to be able to use QuickBooks Online’s budget vs. actual reporting feature.
Another key difference between QuickBooks Online and Desktop is that the former allows you to track your activity, such as income and expenses, by class and location. This is useful for businesses with multiple departments or divisions and those that provide various types of services. Meanwhile, QuickBooks Desktop allows you to set up classes, but you can’t track your income and expenses by location.
In both QuickBooks Online and Desktop, you can assign costs to your inventory items and track the quantities sold to calculate the cost of goods sold (COGS). However, QuickBooks Desktop includes enhanced features, such as inventory assembly management, which is especially useful for businesses that engage in light manufacturing or assembly of products from various components or parts, such as bike manufacturers.
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. For more information, head to our QuickBooks Enterprise review.
One of the advantages of QuickBooks Desktop over QuickBooks Online is the availability of five industry-specific editions: manufacturing and distribution, professional services, contractors, retailers, and nonprofits. These versions, available in Premier and Enterprise, provide custom-tailored features and reports based on the unique needs of your industry.
QuickBooks Online beats QuickBooks Desktop in mobile accounting. As one of our best mobile accounting apps, the QuickBooks Online mobile app lets you perform many accounting tasks, like sending invoices, accepting payments online, and viewing financial reports from your mobile devices.
The QuickBooks Desktop mobile app is very limited as it only allows you to capture expense receipts and track business mileage. If you want to perform bookkeeping from anywhere, we strongly recommend QuickBooks Online’s mobile app.
If you have employees, you can add QuickBooks Payroll to your QuickBooks Online account for as little as $45 per month plus $5 per employee. QuickBooks Payroll allows you to pay your employees by checks or direct deposits, e-file and e-pay taxes, print and e-file W-2 Forms at year-end, and more. Head to our detailed QuickBooks Payroll review to see if it fits the bill.
Meanwhile, QuickBooks Premier has two payroll options with prices that start at $50 per month plus $5 per employee. If you can file taxes confidently on your own, Enhanced Payroll might be suitable. If you want QuickBooks to file your taxes for you, then you must upgrade to QuickBooks Desktop Assisted Payroll for $109 per month plus $2 per employee. Learn how else the two products differ in our QuickBooks Desktop Payroll Enhanced vs Assisted Payroll comparison.
Another notable difference between QuickBooks Online and QuickBooks Desktop is their integration capabilities. QuickBooks Online integrates with over 750 third-party integrations, while QuickBooks Desktop only has more than 200. In addition to having more integrations, they tend to be easier to install in QuickBooks Online since they can be activated directly from the QuickBooks Online store within your QuickBooks Online dashboard.
Here are some of the popular integrations for QuickBooks Online and Desktop:
QuickBooks Online:
- PayPal
- Square
- Bill
- WooCommerce
- Shopify
- Stripe
- HubSpot
QuickBooks Desktop:
- Fishbowl Inventory
- Webgility
- Gusto
- Microsoft 365
- Corecon
In addition to third-party integrations, QuickBooks Online integrates with native products, such as QuickBooks Payments, QuickBooks Payroll, and QuickBooks Time (formerly TSheets). QuickBooks Desktop can be integrated with QuickBooks Desktop Payroll and QuickBooks Time.
While both QuickBooks Online and Desktop are supported by a large network of independent ProAdvisors, it’s much easier to share your books with your ProAdvisor using QuickBooks Online. Getting assistance with your Desktop bookkeeping is difficult since you must save an Accountant’s Copy of your company file and send it to your ProAdvisor.
Also, QuickBooks Online might be the better choice if you need more personalized support for your bookkeeping since you can subscribe to QuickBooks Live for support. Users needing professional bookkeeping assistance can purchase the QuickBooks Live Bookkeeping add-on, which connects you to a team of certified bookkeeping professionals for real-time support through video chat; read our review of QuickBooks Live to learn more. Your dedicated bookkeeper will manage your books and provide month-end reports.
QuickBooks Online integrates with some third-party assisted bookkeeping platforms, including:
- Bookkeeper.com (read our Bookkeeper.com review)
- Xendoo (read our Xendoo review)
- Bookkeeper360 (read our Bookkeeper360 review)
- Pilot Bookkeeping (read our Pilot Bookkeeping review)
- Merritt Bookkeeping (read our Merritt Bookkeeping review)
Alternatively, you can hire a QuickBooks ProAdvisor to help with your bookkeeping needs. To help you get started, we prepared a guide on how to find a QuickBooks ProAdvisor. Meanwhile, if you or your accountant want to become a ProAdvisor to demonstrate expertise in QuickBooks, read our article on how to become a QuickBooks ProAdvisor.
Ease of Use: QuickBooks Online Wins
QuickBooks Online is generally easier to use than QuickBooks Desktop as it has a more streamlined user interface. QuickBooks Online files are also easier to share because you only need to invite a ProAdvisor to your company file, and they’ll have 24/7 access to your books.
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.
Customer Support: Tie
QuickBooks Online and QuickBooks Desktop offer the same customer service options, including:
- Phone support (call back)
- Live chat
- Chatbot
- Access to a large network of QuickBooks ProAdvisors
If you need personalized customer support, you can upgrade to QuickBooks Online Advanced or QuickBooks Enterprise. Doing so grants you access to the Priority Circle loyalty program, including a dedicated account team, free on-demand training, and premium care from QuickBooks experts.
How We Evaluated QuickBooks Online vs Desktop
We evaluated QuickBooks Online vs Desktop based on pricing, ease of use, customer support, and the availability of important features, like banking, project accounting, and inventory management.
5% of Overall Score
In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.
7% of Overall Score
This section focuses more on first-time setup and software settings. The software must be quick and easy to set up for new users. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information.
7% of Overall Score
7% of Overall Score
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.
7% of Overall Score
This takes into account customer management, revenue recognition, invoice management, and collections. The software must have A/R features that make it easy for users to collect payments from customers, remind customers of upcoming or overdue invoices, and manage customer obligations through analytic dashboards or reports.
10% of Overall Score
Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units.
10% of Overall Score
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 monitor project progress and performance.
4% of Overall Score
In this section, we’re looking at sales tax features. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
4% of Overall Score
Reports are important for managers, owners, and decision-makers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
30% of Overall Score
Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software. For this section, we considered customer service, support network, and a subjective expert opinion score. Users must have easy access to customer service channels in case of problems, questions, or assistance.
Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use. Lastly, our expert opinion score is our subjective rating based on our experience in trying the software.
5% of Overall Score
The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
4% of Overall Score
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.
Frequently Asked Questions (FAQs)
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.
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.
QuickBooks Online is cheaper than QuickBooks Desktop if you need multiple users. For instance, QuickBooks Online Plus only costs $90 per month ($1,080 per year) for up to five users as opposed to Desktop’s Premier, which costs $1,999 per year for five users.
Yes, and you can learn it from our tutorial on how to convert QuickBooks Desktop to Online.
Yes, you can, but the process is a bit tedious, as you need to manually export your files from QuickBooks Online to Desktop. If you are currently using QuickBooks Online and want to switch to an interface similar to QuickBooks Desktop, we recommend using the QuickBooks Online Desktop app. Read our article on what the QuickBooks Online Desktop app is to learn more.
Bottom Line
Every business is unique, and there may be instances where QuickBooks Desktop may be a better fit. For example, it may be more suitable for businesses with complex inventory management needs or those wanting offline access to their financial data. However, QuickBooks Online is the better choice for most companies, especially those with remote accountants and multiple employees.
User review references: