A key difference between QuickBooks Online and Desktop is that you can access QuickBooks Online from any computer or mobile device connected to the internet, and it’s easy to share data with your accountant. QuickBooks Desktop must be installed on your computer, which offers faster navigation and data input, but a limited ability to share access.
QuickBooks Online is best for companies that need to give multiple people access to the program, including an outside accountant. QuickBooks Desktop is best for experienced bookkeepers in specialized industries who spend most of their time in an office and want a fast program that doesn’t depend on internet speed. Both QuickBooks Online and QuickBooks Desktop make it on our list of best small business accounting software. QuickBooks Desktop is our best desktop accounting program while QuickBooks Online is our best overall small business accounting software.
9 Key Differences Between QuickBooks Online and Desktop
- Cloud vs Desktop: The biggest difference is that QuickBooks Online is cloud-based and can be accessed from anywhere on the internet, while QuickBooks Desktop must be installed on a single computer or network.
- Simultaneous users: QuickBooks Online comes with a set number of users included in your subscription price, and all users can simultaneously access the program. QuickBooks Desktop can have multiple users set up, but only one user at a time can access the program unless you purchase additional licenses.
- Mobile app: QuickBooks Online has a mobile app capable of performing all the functions needed to keep your books. The only mobile app available for Desktop is to capture receipts, and it requires a Plus subscription to Desktop.
- Future development: New features and improvements to QuickBooks Online have been developed at an incredible pace during the past couple of years. This is not to say that Desktop is going away anytime soon, but it’s no longer the focus of QuickBooks.
- Pricing: QuickBooks Online is a monthly subscription that includes a set number of users. QuickBooks Desktop can either be purchased for a one-time fee that varies with the number of users, or as an annual subscription with some additional benefits. See our pricing section below for more information.
- Sharing with your tax pro: You can give an external accountant complete access to your QuickBooks Online company without it counting towards your maximum users. With QuickBooks Desktop you must create an Accountant’s Copy, which then must be transferred to your accountant. Any changes made by your accountant must then be imported into your QuickBooks Desktop company file.
- Industry-specific software: QuickBooks Online doesn’t have any industry-specific editions. QuickBooks Desktop has editions for construction, retail, professional services, manufacturing and wholesale, and nonprofit companies that include industry-specific reports and workflows.
- Customer service: All QuickBooks Online subscriptions include unlimited customer service. QuickBooks Desktop does not include customer service unless you purchase the software as an annual subscription.
- Bookkeeping assistance: You can receive assistance and advice for keeping your books from QuickBooks Live for QuickBooks Online accounts, or you can consult with an independent QuickBooks Online ProAdvisor. For QuickBooks Desktop, your only option is an independent QuickBooks Desktop ProAdvisor.
When to Use QuickBooks Online
You should consider QuickBooks Online if you need to provide access to your books for more than one person, including an outside accountant, such as a tax professional. It’s also the ideal choice if you want remote access with mobile applications. It also offers more time-saving automation features than QuickBooks Desktop and integrates with third-party payment processors, allowing your customers to pay their invoices directly online. However, cloud-based accounting is not the only strength of QuickBooks Online. It is powerful software that can serve companies in a wide variety of industries. QuickBooks Online is included in our list of best church accounting software and best nonprofit accounting software.
When to Use QuickBooks Desktop
QuickBooks Desktop is more preferable for managing complex accounting needs as its features are generally more developed than those of QuickBooks Online. QuickBooks Desktop excels with its industry-specific editions that include custom workflows and reports tailored to specific industries. You should give QuickBooks Desktop serious consideration if your business is a retailer, manufacturer, wholesaler, professional service provider, construction contractor, or nonprofit. We consider QuickBooks Desktop as our overall best multicompany accounting software and our best accounting software for farmers working with an independent bookkeeper or tax preparer.
QuickBooks Online vs Desktop: At a Glance
QuickBooks Online | QuickBooks Desktop (Software Purchase) | QuickBooks Desktop Pro Subscription | |
|---|---|---|---|
Pricing | Monthly subscription $25 (Simple Start) $50 (Essentials) $80 (Plus) $180 (Advanced) | One-time payment $399.99 for one user (Pro) $649.99 for one user (Premier) Enterprise is not available as a purchase | Annual subscription $299.99 for one user (Pro) $499.99 for one user (Premier) $1,275 for one user (Enterprise) |
Maximum Users | 1 (Simple Start) 3 (Essentials) 5 (Plus) 25 (Advanced) | 3 (Pro) 5 (Premier) 40 (Enterprise) | 3 (Pro) 5 (Premier) 40 (Enterprise) |
Multiple Users | Users included: 1 (Simple Start) 3 (Essentials) 5 (Plus) 25 (Advanced) | See our pricing section for multi-user prices | See our pricing section for multi-user prices |
Unlimited Transactions, Vendors & Customers | ✔ | ✔ | ✔ |
Unlimited Companies | N/A | ✔ | ✔ |
Free Upgrade to Most Current Version | ✔ | N/A | ✔ |
Unlimited Customer Support | ✔ | Additional $299.99 per year | ✔ |
30-day Free Trial | ✔ | N/A | N/A |
60-day Money-back Guarantee | N/A | ✔ | ✔ |
Automatic Off-site Backup of Data | ✔ | N/A | ✔ |
Mobile Receipt Capture | ✔ | N/A | ✔ |
Access Data Anywhere From Multiple Devices | ✔ | N/A | N/A |
Industry-specific Editions | N/A | ✔ | ✔ |
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QuickBooks Online vs Desktop: Pricing
QuickBooks Online and QuickBooks Desktop have different pricing structures. QuickBooks Online offers four pricing plans and each includes a set number of users. QuickBooks Desktop is available as a software purchase or yearly subscription with an additional cost per user.
QuickBooks Online Pricing & Features by Version
Feature | Simple Start | Essentials | Plus | Advanced |
|---|---|---|---|---|
Monthly Pricing | $25 | $50 | $80 | $180 |
Users Included | 1 | 3 | 5 | 25 |
Approximate Number of Reports Available | 20 | 40 | 65 | 100 |
Send & Track Invoices | ✔ | ✔ | ✔ | ✔ |
Manage Sales Tax | ✔ | ✔ | ✔ | ✔ |
Track Mileage | ✔ | ✔ | ✔ | ✔ |
Manage Unpaid Bills | N/A | ✔ | ✔ | ✔ |
Inventory Tracking | N/A | N/A | ✔ | ✔ |
Track Project Profitability | N/A | N/A | ✔ | ✔ |
Custom User Permissions | N/A | N/A | N/A | ✔ |
Dedicated Success Manager | N/A | N/A | N/A | ✔ |
Training for Staff | N/A | N/A | N/A | ✔ |
Exclusive Premium App Integration | N/A | N/A | N/A | ✔ |
Batch Invoices & Expenses | N/A | N/A | N/A | ✔ |
Restore Company Data | N/A | N/A | N/A | ✔ |
To learn more about the four QuickBooks Online plans, read our QuickBooks Online comparison. | ||||
QuickBooks Desktop Pricing & Features by Version
Feature | Pro | Premier | Enterprise |
|---|---|---|---|
One-time Cost | $399.99 for one user $399.99 for one user $899.99 for three users | $649.99 for one user $999 for two users $1,399 for three users $1,749 for four users $2,099 for five users | Not available as a software purchase |
Plus Subscription ($/Year) | $299.99 for one user $499.99 for two users $699.99 for three users | $699.99 for three users $799.99 for two users $1,099.99 for three users $1,399.99 for four users $1,699.99 for five users | $1,275 for one user $2,037 for two users $2,547 for three users $3,057 for four users $3,566 for five users Custom pricing for more than six to 40 users |
Maximum Users | 3 | 4 | 40 |
One-click Reports | 100+ | 150+ industry-specific | 150+ industry-specific |
Send & Track Invoices | ✔ | ✔ | ✔ |
Manage Unpaid Bills | ✔ | ✔ | ✔ |
Inventory Tracking | ✔ | ✔ | ✔ |
Track Project Profitability | ✔ | ✔ | ✔ |
Receipt Capture | Requires Plus subscription | Requires Plus subscription | ✔ |
Industry-specific Versions | N/A | ✔ | ✔ |
To determine which version is best for you, read our comparison of QuickBooks Desktop products. | |||
Takeaway: QuickBooks Online’s pricing structure is a better choice if you have multiple users and need unlimited customer support. It’s ideal for businesses that can’t afford to subscribe to expensive licensing or annual subscriptions. QuickBooks Desktop can be a good value for companies with only one user.
QuickBooks Online vs Desktop: Features
Either version of QuickBooks will help manage your business efficiently and effectively. However, while both Online and Desktop have most of the general features you’d expect, there are some significant differences in features.
QuickBooks Online has the following features that are not available in QuickBooks Desktop:
- Determine sales tax rate automatically: QuickBooks Online will calculate the sales tax rate automatically to apply to transactions based on any customer address in the United States.
- Multiple users: All versions of QuickBooks Online, except Simple Start, come with multiple users that can simultaneously access the company file. In addition to the stated number of users, all QuickBooks Online companies can invite at least one external accountant to share their books. QuickBooks Desktop requires an additional license for each simultaneous user.
- Mobile app: QuickBooks Online comes with a mobile app that allows users to perform almost any accounting function while on the go. QuickBooks Desktop has no mobile app unless you purchase the Plus subscription, and then the app is limited to capturing and uploading receipts.
- Access data anywhere from multiple platforms: QuickBooks Online data can be accessed 24/7 from any PC, Mac, or mobile device with an internet connection.
- Automatic online backup and protection: QuickBooks Online data is automatically backed up and secured. There’s no need to worry about your data if your computer gets stolen or malfunctions because it’s not stored on your computer.
For an in-depth analysis of the features of the online version, check out our QuickBooks Online review.
QuickBooks Desktop has the following features not found in QuickBooks Online:
- Unlimited companies: One license to QuickBooks Desktop allows you to do the bookkeeping for an unlimited number of companies.
- Additional inventory options: QuickBooks Desktop has more robust inventory tracking and costing features. For instance, you can create an inventory assembly to combine the costs of supplies, existing inventory, and labor into the cost of newly manufactured inventory.
- Additional options for exporting reports: QuickBooks Desktop can update a pre-existing Excel spreadsheet. This is very valuable if you perform analyses in Excel after exporting a report. You don’t need to redo your analysis every month. Update the spreadsheet numbers directly from QuickBooks Desktop.
- Industry-specific editions: QuickBooks Desktop offers industry-specific editions of Premier for the following industries: Construction, manufacturing and wholesale, professional services, retail, and nonprofit.
You can read our detailed QuickBooks Desktop Premier review to learn more.
Takeaway: Both QuickBooks Online and QuickBooks Desktop offer an outstanding set of comprehensive features, but QuickBooks Desktop lacks a mobile app. The other big advantage of QuickBooks Online is its calculation of sales tax based on the customer address. For businesses in the five specific industries with special editions, QuickBooks Desktop might be the best choice.
QuickBooks Online vs Desktop: Ease of Use
QuickBooks Online wins easily when it comes to ease of use because it’s cloud-based with no program to install. However, you can download QuickBooks Desktop and install it on a single computer in a matter of minutes. It’s a little more difficult to install QuickBooks Desktop on multiple computers because both computers will need access to the company data file.
The setup process is very similar for both QuickBooks Online and QuickBooks Desktop. The express setup takes about five to 10 minutes and requires some basic company information. The more in-depth setup may take more than two hours, depending on whether or not you’re bringing data over from another accounting system. Follow our step-by-step guide if you plan to convert from QuickBooks Desktop to Online.
I recommend you spend as much time as possible setting up your company. By setting up your employees, vendors, products, and services upfront, you’ll have a customized company file that will be much easier to use. You can preview the QuickBooks Online setup process by browsing our Free QuickBooks Online Tutorial.
QuickBooks Online: Navigation
QuickBooks Online is easier to navigate than QuickBooks Desktop. Customer, vendor, and account details can be viewed by clicking on the left menu bar. For instance, customer details, including what they owe you, can be viewed by clicking on Sales and then Customers:
View customer details in QuickBooks Online. (Source: QuickBooks)
All transactions in QuickBooks Online can be initiated by clicking the New button above the left menu bar and selecting from the menu of transactions.
Creating new transactions in Quickbooks Online.
QuickBooks Desktop: Navigation
QuickBooks Desktop offers a multitude of ways to navigate, but the easiest way for beginners is through the home page. Vendor, customer, or employee details can be viewed by clicking on the appropriate tab, while transactions can be initiated by clicking on the corresponding icon. The Home Page displays the most essential functions, including Vendors, Customers, Employees, and Banking. Each function includes respective icons that allow you to easily access and perform certain transactions, such as Enter Bills for Vendors, Create Invoices for customers, and Enter Time for Employees. Below is how the QuickBooks Desktop Home Page looks like:
QuickBooks Desktop Home Page.
Takeaway: QuickBooks Online is generally easier to use than QuickBooks Desktop as it has a more streamlined user interface. As cloud-based software, you won’t have to install anything to get started. If you are an inexperienced bookkeeper, QuickBooks Online is the more suitable choice for you. However, if you have experience with other bookkeeping software, you’ll find QuickBooks Desktop easy to use after a bit of studying.
QuickBooks Online vs Desktop: Assisted Bookkeeping
For QuickBooks Online users who need professional bookkeeping assistance, they can purchase an add-on called QuickBooks Live Bookkeeping. As the name suggests, it’s a QuickBooks service that connects you to a team of certified bookkeeping professionals for real-time support through video chat. Your dedicated bookkeeper will manage your books and provide month-end reports. Meanwhile, QuickBooks Desktop users can find a QuickBooks Desktop ProAdvisor to help with their bookkeeping needs.
Takeaway: If you need more personalized support for your bookkeeping, QuickBooks Live Bookkeeping for QuickBooks Online might be a better choice. However, you also can’t go wrong with a certified QuickBooks Desktop ProAdvisor.
QuickBooks Online vs Desktop: Integrations
Since QuickBooks Online is cloud-based, it offers more ample integration options than QuickBooks Desktop. QuickBooks Online integrates with popular third-party tools, such as PayPal and Square. It also connects with data and financial management software, like SOS inventory, Fathom, and TSheets. It also seamlessly integrates with ecommerce platforms, such as WooCommerce and Shopify, making it our overall best ecommerce accounting software.
QuickBooks Desktop also integrates with plenty of third-party tools, such as Qu, Gusto, Microsoft Excel, and Microsoft 365. Developers can also download and install the QuickBooks Desktop SDK [software development kit] to develop applications and integrate with QuickBooks Desktop.
Takeaway: If you need more automation features through integration with different third-party tools, QuickBooks Online is the clear choice.
QuickBooks Online vs Desktop: Mobile App
In terms of mobile accounting, QuickBooks Online is the clear winner as Desktop has a very limited mobile app. QuickBooks Online has a mobile application that includes nearly all the features of the online browser version, plus other functions like receipt capture and mileage tracking. QuickBooks Online is our overall best mobile accounting app. You can download the app on Google Play or the App Store.
Takeaway: If you want the ability to do your bookkeeping from anywhere, we strongly recommend the mobile app of QuickBooks Online.
QuickBooks Online vs Desktop: Customer Support
QuickBooks Online has an advantage over QuickBooks Desktop because it comes with unlimited customer support. If you want unlimited support through QuickBooks Desktop, it’s best to purchase the Plus annual subscription. Otherwise, an à la carte Annual Care Plan will cost $299 per year, which is the same price as the entire QuickBooks Pro Plus subscription. QuickBooks Online and Desktop both have a large, searchable, online database of questions and answers available to anyone.
ProAdvisor Support
Both QuickBooks Online and QuickBooks Desktop have a large number of independent QuickBooks ProAdvisors that you can hire to help you get started and keep things in order. However, QuickBooks Online has a distinct advantage in how you share your books with a ProAdvisor. With QuickBooks Online, you invite a ProAdvisor to your company file, and they will have 24/7 access to view and adjust your books. They log in with their own ID and won’t count as one of your licensed users.
QuickBooks Desktop is harder to share. You must make an Accountant’s Copy of your data file and send it to your ProAdvisor. The Accountant’s 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 okay system, but not nearly as convenient as sharing your books through QuickBooks Online.
If you are an inexperienced bookkeeper, you should probably choose QuickBooks Online and find a QuickBooks ProAdvisor that can offer you frequent help. While the Accountant’s Copy is a reasonable way to share books, it’s not something you want to do on a daily or weekly basis.
If you’re an independent bookkeeper looking to expand your business, you should consider becoming a QuickBooks ProAdvisor. The certification for QuickBooks Online ProAdvisors is free.
Takeaway: QuickBooks Online beats QuickBooks Desktop hands-down for customer support. Not only does it come with unlimited support, but you can also easily share your books with a QuickBooks ProAdvisor.
Bottom Line
If most of your accounting duties are done remotely, QuickBooks Online is the right choice. However, if you want the ability to manage your books without an internet connection or you need industry-specific features, choose QuickBooks Desktop.
QuickBooks Desktop is also much more affordable than QuickBooks Online provided you need only one user and don’t require customer service. However, the lack of a fully functional mobile app for QuickBooks Desktop is a serious shortcoming in today’s mobile age.
