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. To help figure out which product is right for you, answer a few questions below to get a personalized recommendation.
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 50% 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 Premier Annual Subscription $299.95 Pro Plus $499.95 Premier 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 |
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.
jacob smile masawudu
My client needs a one-time-payment Quickbooks Desktop Enterprise Software to manage her wholesale, distribution and retail business. She doesn’t want a subscription. Can you help.
This is my email: jacsmile@gmail.com
Tim Yoder
Hi Jacob,
Unfortunately, Enterprise is no longer available without a subscription. Wish I could help!
Tim
KAREN ASBURY SIGNATURE ENTERPRISES
Hi there
We are a property management company (HOA)
and are wondering which version of QuickBooks would work best for this type of industry. Homeowners would be the customers and would be billed for their HOA dues each month. Also if desktop ( which I think I prefer) which version and what version is also best for customer service.
We also like to use “ cost codes” so keeping that in mind as well.
Tim Yoder
Hello,
Thank you for reading our article! If you prefer Desktop, then QuickBooks Desktop Pro will definitely meet your needs. However, if you want unlimited customer service for Pro, you will need to purchase the QuickBooks Pro Plus subscription, which is $299.95 per year. In addition to customer support, this subscription includes the software itself, data backups, and an annual upgrade to the new addition. Act fast because there is a rumor Desktop prices will be increasing significantly on Monday, 9/21.
If you’d like to give Quickbooks Online a try instead of Desktop, I’d recommend QuickBooks Simple Start for $25 per month with no contract, which includes unlimited customer support. If you want to track income and expense by location or track unpaid bills you’ll need QuickBooks Essentials instead. They offer a 30-day free trial without requiring a credit card. You can learn to use QBO with our free tutorial.
All the QuickBooks programs use the same system of product and service items, which is where you would set up your cost codes.
I hope this helps!
Tim
Carolina Serrano
Hi Tim, We are starting a small construction business and we would like your advice in which products will fit better. One of the things we want to track from the beginning is the cost of each project and calculate the profit of each one separate. We will be managing different contractors . We will prefer the online version , however according to my readings, looks like the best version is the desktop premier . Could you advice what would be the best option . The other question is if I have the on line version , and after we would like to move to the desktop how difficult is to move and transfer the data
Tim Yoder
Hi Carolina, thank you for the question!
I was the accountant at a roofing contractor for a couple of years, so I have a pretty good idea of what you’re looking for and completely agree it’s essential to calculate your profit/loss by job. We used QuickBooks Premier-Contractor Edition. However, QuickBooks Online Plus has made huge progress since then and is very capable of handling a construction business. Both Premier-Contractor and Online-Plus allow you to categorize expenses by job, although Online-Plus refers to them as projects. Both also allow you to specify different classes such as repairs, new construction, remodeling, etc.
As for switching between versions, it is pretty easy to go from Desktop to Online as I explain here. It is much more difficult to go from Online to Desktop, because QuickBooks does not provide an automated procedure to do so. You’ll have to export all your lists and transactions manually and then import them into Premier.
I have written very detailed reviews for both Premier-Contractor and Online-Plus.
I think Premier-Contractor still has a slight edge over Online Plus, UNLESS any of the following are true:
* you need access by more than one user at a time
* you need access from more than one computer
* you wish to share your books with an external accountant more than a couple of times a year
The key to success with any version of QuickBooks is to get the company set up properly before you begin recording transactions. I’d recommend finding a QuickBooks ProAdvisor and spend the money to have them assist you to set up the company file.
I hope this helps and I’d love to hear what you decide!
Tim
Susan Boyd
Hi Tim, I am opening two companies and two of us will be doing the bookkeeping. One of us on a PC and one on a Mac. We are also doing the payroll. I can’t figure out if I should get Desktop or Oneline ? Any suggestions?
Thanks for your advice,
Susan
Tim Yoder
Hi Susan,
You definitely want QuickBooks Online because the Mac and PC versions of the desktop product are not compatible. Even if the Mac can run the PC version of QB Desktop, Desktop is very hard to share between computers (it requires the computers to be networked). While I definitely recommend QuickBooks Online for you, it will require a separate subscription for each company.
If you need help deciding which Online version is right for you, I recommend reading our QuickBooks Online Comparison. We also have a series of 39 free QuickBooks Online tutorials to help you get started.
Thank you for reading our article and posting your question. Best of luck with your new companies!
Tim
imaan online
Hi,
I am looking for an accounting system totally for free for a small business, as I can’t pay right now.
Any suggestions, please?
Thank you!
Tim Yoder
Hi, There are several good free accounting systems for your small business. You can find more information in our article 6 Best Free Accounting Software. I hope this helps and thank you for visiting our website!
Tim