QuickBooks Online, or QBO, is Intuit’s cloud-based accounting product. QBO was launched in 2004, and while the software was initially far less developed than the reigning QuickBooks Desktop, Intuit has made serious strides with this product and is constantly adding new features and small business services to improve their software.
QuickBooks Online is designed specifically for small businesses; however, the new QuickBooks Online Advanced plan makes the software scalable for larger businesses as well. The software offers a robust feature set, strong accounting, online payroll, attractive invoices, 650+ integrations, and a unique lending feature.
QBO is also significantly easier to learn and use than QuickBooks Desktop. Since the software is cloud-based, QBO works anywhere you have an internet connection, and there are mobile apps to help you manage your business on the go.
Pros
Cloud-based
Easy to use
Monthly pricing
Strong features
Built-in lending
650+ integrations
Cons
Customer support
More expensive than other SMB products
Fewer features than Desktop
No sales orders
QuickBooks Desktop is the prehistoric dinosaur of accounting software, launched way back in 1992. But this dinosaur is far from extinct (despite Intuit’s efforts to force users to switch to QuickBooks Online).
QuickBooks Desktop made Intuit what it is today, and it is still one of the primary software choices of accountants worldwide.
QuickBooks Desktop most often refers to QuickBooks Desktop Pro, although there are actually three different QuickBooks Desktop products: QuickBooks Desktop Pro, QuickBooks Desktop Premier, and QuickBooks Desktop Enterprise.
The main difference between the three is that Pro is designed for small businesses, Premier for medium business, and Enterprise for large businesses. As such, each plan progresses in terms of available users and features.
Each desktop version of QuickBooks offers incredible accounting tools and extensive features, including expense tracking, budgeting, and job costing, 200 integrations, and positive customer reviews. It’s worth noting that QuickBooks Desktop is only available on Windows operating systems. Mac users will need to look at QuickBooks for Mac for a locally-installed Mac-based QuickBooks option.
Pros
Strong features
Traditional accounting
Potentially more secure
200+ integrations
Cons
Windows-only
Customer support
No remote access or mobile apps
Expensive license structure
Fewer automations than QBO
I hope this comparison will be helpful!
Mark Wilson
7 Key Differences Between Desktop & QBO
The differences in the two versions of QuickBooks are evident when accessing the software, creating reports, processing invoices and more. Here are a few of the key differences:
Initial Fee – Online offers a free 30-day trial so there is no initial fee to try it. Desktop requires the purchase of the software up front.
Monthly Fee – Pro Desktop 2015 is a one-time payment or you can get Pro Plus for an annual payment. On the other hand, QuickBooks Online requires a monthly subscription.
Internet Connection – Because it is cloud-based, an Internet connection is required to use QBO. QuickBooks Desktop can only be accessed from the computer it is installed on regardless of Internet connection.
Automation Functions – With Desktop, transactions (invoice, receipt, reports, etc.) must be processed manually. QBO has several automated features for things such as customer billing, email reports and downloading bank transactions.
Remote Access – Since QuickBooks Online is cloud-based, users can access QuickBooks reports wherever they have Internet access and from multiple devices. The QuickBooks Desktop version is linked to the computer it is installed on and therefore can only be accessed on-site.
Customized Features – The QuickBooks Desktop version has several features that are not available in the online version. This includes the ability to prepare 1099s, budget and track mileage and expenses. In general, the desktop version allows more freedom to customize forms than QuickBooks Online.
Support – The basic QuickBooks Desktop version does not come with support although you can pay for support by getting the Pro Plus edition. QuickBooks Online comes with free support.
More information: QuickBooks Nonprofits Desktop | QuickBooks Desktop Enterprise
Regards, Bruce