QuickBooks Online and QuickBooks Desktop differ in this fundamental way: 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 inexperienced bookkeepers who want to share their data and work closely with an outside accountant. QuickBooks Desktop is best for experienced bookkeepers who spend most of their time in an office and want a fast program that doesn’t depend on internet speed.
QuickBooks Online: Pros and Cons
Pros | Cons |
|---|---|
 Access from any location |  Slower navigation and data input |
| Share access with outside accountant | Requires monthly subscription |
| Most editions include multiple users | Not as good with inventory |
| Input data from mobile devices | Fewer options for exporting reports to Excel |
| Program always up-to-date |
QuickBooks Online is ideal for business owners who want to do their own accounting. You can designate a QuickBooks Proadvisor as your accountant, and they will have access to your data whenever needed automatically. For a limited time, you can purchase the software for 70% off.
QuickBooks Desktop: Pros and Cons
Pros | Cons |
|---|---|
| Fast navigation and data input | Powerful software takes time to learn |
| Reports can update specific sheets within an Excel Workbook | Must save a copy and send to accountant to share data |
| May purchase for one-time fee and use for at least three years | Price includes only one user at a time |
| One license allows bookkeeping for an unlimited number of companies | Network installation might require some IT help |
| Industry-specific editions available |
QuickBooks Desktop is ideal for companies with an experienced in-house bookkeeper. The fast navigation and data input is most important for bookkeepers who spend a lot of time in the program. QuickBooks Desktop is available as a one-time purchase or as an annual subscription that includes automatic backups, unlimited customer service, and annual edition upgrades.
QuickBooks Online vs Desktop: Pricing and Features
QuickBooks Online is only available as a monthly subscription. QuickBooks Desktop can either be purchased for a one-time payment or as an annual subscription that includes automatic backups, unlimited customer support, and annual edition upgrades.
Features/Benefits | QuickBooks Online | QuickBooks Desktop |
|---|---|---|
Price | Monthly Subscription $25 Simple Start $40 Essentials $70 Plus $150 Advanced | One-time payment $299.95 Pro $499.95 Premium Annual Subscription $299.95 Pro Plus $499.95 Premium Plus |
Software installation required | ✔ | |
Upgrades included | ✔ | Requires Plus subscription |
Automatic online backup and data protection | ✔ | Requires Plus subscription |
Access from multiple platforms | ✔ | |
Access data from multiple locations | ✔ | |
Unlimited free customer support | ✔ | Requires Plus subscription |
30-day risk-free trial | ✔ | |
60-day money-back guarantee | ✔ | |
Industry-specific versions | ✔ | |
Read our analyses of online and desktop editions |
Is QuickBooks Online or QuickBooks Desktop Best for You?
QuickBooks Online vs Desktop: Key Differences
Quickbooks Online and QuickBooks Desktop are both excellent choices and are among the best small business accounting software. Either program will do a great job of bookkeeping for most businesses, so your selection of online vs desktop generally comes down to personal preference, how much time you spend in the program, and how often you need assistance from an outside accountant.
Ease of Program Installation
QuickBooks Online wins easily when it comes to program installation because there is 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. I’ve always enlisted the help of an information technology (IT) person for a network installation of QuickBooks Desktop.
Ease of Company Setup
The company file setup process is the same 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 one to 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.
In addition to providing basic company information, you need to answer a few questions about how you manage your business. I recommend you spend the extra time upfront and complete the in-depth setup process because it provides you with a more customized company file that can better meet your specific business needs.
Ease of Use
Both QuickBooks Online and QuickBooks Desktop are user-friendly, but I give a slight advantage to Online for overall ease of use. All transactions in QuickBooks Online can be initiated from the Quick Create menu. The Quick Create menu in QuickBooks Online is divided into four sections:
QuickBooks Online Create menu
Transactions in QuickBooks Desktop can be initiated from the company homepage. QuickBooks Desktop’s homepage is also separated into four sections, but includes a graphical representation of the workflow:
Homepage in QuickBooks Desktop
While QuickBooks Online has an edge for ease of use, QuickBooks Desktop has a distinct advantage in speed. QuickBooks Online has a minor pause, depending on your internet speed, between clicks as the screen refreshes. This is not a big deal for the casual user, but for a full-time bookkeeper spending hours per day in the program, this slight pause is not only annoying but time-consuming as well.
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, customer support―after the first 30 days―will cost $59.95 per session or $89.95 for 90 days. 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 a pretty good 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 so that you can get frequent help from a ProAdvisor. 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.
Features
The differences between QuickBooks Online and QuickBooks Desktop mostly deal with how you access and use the program. However, some important features differ between the products that might sway you to choose one over the other.
QuickBooks Online Unique Features
Here are four features of QuickBooks Online that aren’t available with a one-time purchase of QuickBooks Desktop:
- 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.
- 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 access to the latest version: QuickBooks Online is constantly being improved, and you have access to the latest version every time you log in.
- Multiple users: All versions of QuickBooks Online, except Simple Start, come with multiple users that can simultaneously access the company file. QuickBooks Desktop requires an additional license for each simultaneous user.
QuickBooks Desktop Unique Features
Here are four features you’ll find in QuickBooks Desktop not available with 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. Simply 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.
QuickBooks Online Version Comparison
Feature | Simple Start | Essentials | Plus | Advanced |
|---|---|---|---|---|
Monthly Retail Cost | $25 | $40 | $70 | $150 |
Maximum Number of Users | 1 | 3 | 5 | 25 |
Accounts Payable | ✔ | ✔ | ✔ | |
Inventory Tracking | ✔ | ✔ | ||
Smart Reporting Powered by Fathom | ✔ | |||
Accelerated Invoicing | ✔ | |||
Custom User Permissions | ✔ | |||
Dedicated Success Manager | ✔ | |||
Training for Staff | ✔ | |||
Last Updated: 04/02/2020 | ||||
If you have inventory, you’ll need to choose at least the QuickBooks Online Plus, but you might be better served with QuickBooks Online Advanced as it has an advanced inventory add-on. You’ll have to choose Advanced if you need more than five users.
QuickBooks Desktop Version Comparison
Feature | Mac | Pro | Premier | Enterprise |
|---|---|---|---|---|
One-time Cost* | $299 | $299 | $499 | |
Plus Subscription | $199/year | $299/year | $1,155/year | |
Users Included | 1 | 1 | 1 | 1 |
Maximum Users | 5 | 3 | 5 | 30 |
One-click Reports | 100+ | 100+ | 150+ industry-specific | 150+ industry-specific |
Business Plan With QuickBooks Data | ✔ | ✔ | ||
Industry-specific Versions | ✔ | ✔ | ||
Last Updated: 04/02/2020 | ||||
*Note: If you purchase QuickBooks Desktop for a one-time fee, you will need to upgrade at least every three years to continue using QuickBooks support, Intuit Payroll, and Intuit Merchant Services. The Plus subscription includes annual upgrades.
Each desktop license is good for only one user. You should purchase licenses according to how many people will access the company file simultaneously. If you need more than five simultaneous users, you will need to purchase the Enterprise edition.
Finally, QuickBooks Desktop Premier offers both a general business edition as well as five industry-specific editions:
- Contractor
- Manufacturing and wholesale
- Professional services
- Retail
- Nonprofit
Bottom Line
Experience should play a big part in your decision on whether to choose QuickBooks Online or QuickBooks Desktop. Inexperienced bookkeepers should lean toward the online product. However, there are some important feature differences. QuickBooks Desktop is better for inventory management and costing and comes in five industry-specific editions.
Inexperienced bookkeepers in service-based industries should usually choose QuickBooks Online. The interface is user-friendly, and the company file can be accessed by your independent ProAdvisor to help keep you on the right track. Get started today with a 30-day free trial.
Full-time, experienced bookkeepers will usually prefer QuickBooks Desktop for its fast navigation and input. Companies in an industry with an industry-specific edition of QuickBooks Desktop Premier should seriously consider the desktop product for the convenience of the custom workflows and reporting. You can start today with a 60-day money-back guarantee.
Piogal 33
I wanted to compliment you on what I thought was a very neutral, unbiased, fact reporting article. (I’ve read others that clearly push Quickbooks Online). Thank you for giving the pros and cons. I now have the information I need to make a decision.
Piogal 33
One additional thought after reading another review… Just because you state a preference does not mean you are pushing one over the other. You still fairly weighed out all the facts. Your article was very informative. Thank you.
Amanda Norman
Hi Piogal33,
Thanks for reading and sharing your thoughts!
Best wishes,
Mandy, Moderator
Christopher Tadda
Thank you Crystalynn! Clearest article on this question I have ever found. Thank you for sharing your knowledge and insights.
Crystalynn Shelton
Hey Chris, you are very welcome! Do you mind sharing which version of QuickBooks you decided to go with and why?
Best-
Crystalynn Shelton
Susan
We are beginning operations for an LLC that maintains solar fields. We have 3 principals in the company and will initially have 10 fields that we operate. We’ll need to invoice our client, receive payments, pay vendors for equipment rentals, fuel, etc. and pay our 1099 contractors. All expenses will need to be allocated by field. Need the ability to issue Form 1099’s at the end of the year. There’s a possibility we’ll set up another LLC for other operations later on down the road. Considering the above and the comments below, which would be best for us – online or desktop?
1. From the comments above, only Desktop allows for multiple companies under the same license?
2. Does only the Plus online version ($50/month) have the ability to print 1099’s at the end of the year? Can you print 1099’s with the Desktop version?
3. Which payroll function (Desktop or Online) allows you to allocate to locations (our fields)?
4. How much does the Desktop upgrade cost recommended every 3 years cost?
Thanks!
Crystalynn Shelton
Hi Susan, congratulations on your new business! I have re-posted your questions below along with my responses to each one:
Question:From the comments above, only Desktop allows for multiple companies under the same license?
Answer: Yes, this is correct. You can set up several companies in Desktop with one license. At this time, it is not possible to set up more than one company under the same account with QuickBooks Online.
Question: Does only the Plus online version ($50/month) have the ability to print 1099’s at the end of the year? Can you print 1099’s with the Desktop version?
Answer: Both QuickBooks Online Plus and QuickBooks Desktop Pro, Premier and Enterprise have the ability to track, report and print 1099 forms.
Question: Which payroll function (Desktop or Online) allows you to allocate to locations (our fields)?
Answer: Both products will allow you to set up multiple locations (fields). In Desktop, you would have to use a function called class tracking and in QuickBooks Online they have class tracking and also location tracking available.
Question: How much does the Desktop upgrade cost recommended every 3 years cost?
Answer: The cost to upgrade every 3 years really depends on which version of QuickBooks Desktop you are using. In general, the upgrade cost is usually in the ballpark of the amount you paid when you first purchase the software. If you decide to purchase QuickBooks Online or Desktop you can save a few bucks by clicking on any of the QuickBooks Online or Desktop links in our articles.
I recommend that you check out this article that compares/contrasts all of the QuickBooks Desktop versions. I think it might be helpful in making your decision.
Link to QuickBooks Desktop article:https://fitsmallbusiness.com/quickbooks-pro-vs-premier-vs-enterprise-vs-accountant/
Once you’ve made your decision, it would be great to hear which product you decided to go with and why.
All the Best
Crystalynn Shelton
Dean
I’m in the process of starting my own bookkeeping service and am trying to decide between QuickBooks Online or QuickBooks desktop. It sounds like if I go with the online version I will have to pay the $15 -$50 monthly fee per company that I provide my services to. Is this correct?
Crystalynn Shelton
Hey Dean!
Congratulations on your new bookkeeping business. So the most economical approach is to sign up for a free QuickBooks Online Accountant. It is 100% free for accountants and bookkeepers. You can use the software to manage your clients work as well as keep track of your bookkeeping for your practice. You can also sign up new clients through QuickBooks Online Accountant and you can choose to have Intuit bill you and then you can bill your client or you can have them bill your client directly for their QBO accounts.
I would also recommend that you consider adding on the Desktop membership. There is one for $349 per year (which you can pay monthly) and you get access to free software as well as discounts that you can pass onto your desktop clients. I’ve been a QuickBooks ProAdvisor for over 10 years now and it has been worth every penny!
I wrote an article on this entire process so check back with us next month to see if it has been published or follow me on Twitter (@CrystalynnPens) because I always post my articles within a few days of when they publish. In the meantime, reach out again if you have any questions about the ProAdvisor program. You can sign up for the free QBOA and learn more about the program by clicking the link below: https://quickbooks.intuit.com/accountants/?sc=Intuit.com&s_ev1=Intuit.com_Footer_QBAccountants
Best of luck,
Crystalynn Shelton, CPA
@CrystalynnPens
Alejandro
Hi. I’m a long-time Quickbooks Desktop user, and just wanted to point out a couple of things some people may find important. First, you say the Desktop version only runs on one device, which isn’t completely accurate. I use the Pro version, which supports up to three users (as you show in one of your tables above). The multi-user support is indeed true multi-user, supporting access to the same data file from multiple computers at the same time. There are a few restrictions on this – some payroll and admin functions require temporarily switching to single-user mode – but most features work in multi-user mode. Worth noting, however, they do charge more for the 2- or 3-user licenses. Even if you only have the basic license for one user, you can still set up the software to allow access from multiple computers, as long as only one is accessing it at a time. On a technical note, the shared data file cannot be stored on a simple network storage device. You have to have it on a computer set up as a Quickbooks server running Windows. I don’t know whether this supports access from a Mac, but it definitely works in an all-Windows environment. Of course, the Online version also supports multiple users, as long as you buy multi-user licenses. I’m simply pointing out that you CAN access the Desktop version from multiple computers on the same network.
Second, if you run multiple businesses, you’ll find that the Desktop version is much more cost-effective. Desktop supports unlimited number of companies (one company per data file), while the online version only supports one company per license. So, if you own/operate multiple companies, you can use one Desktop license for all of them, but you’d need separate licenses of Online for each company. That’s huge for some of us! Please note that this only applies to the core Quickbooks program, not the payroll module. Payroll is tied to the employer’s tax IT (EIN), so you’ll need separate licenses of payroll, whether you use desktop or online. That said, the core product isn’t cheap, so you still save money with the desktop version.
Hope this helps!
Alejandro
Oops, typo! I meant Tax ID, not tax IT. Perhaps a kind moderator could update that for me? Thanks!