I have been using QuickBooks Pro, Enterprise and Online for the last 18 years and I can tell you without a doubt that the best version is QB Pro, but you should purchase QBO because it’s the future. It’s almost like back in the early 2000’s when PS was fighting for the first place with Xbox. Everyone will tell you that the PS had the best graphics but Xbox had better games and was cheaper. The same thing happens here.
QB pro has better accounting but QBO has better customer experience all around and it’s cheaper. There is only one situation in which I would advocate to get QBO Pro instead of QBO which I will explain later.
The Main Similarities and Differences
Both QuickBooks options are accounting software packed with the features you need to run a startup. QuickBooks Online is a cloud-based version of the software for use anywhere and you’ll pay for it monthly. QuickBooks Desktop needs to be installed on your desktop computer for use on that one computer or better yet in a server computer and you pay one large fee a year.
It’s a little more complicated than that too. The different options offer some unique benefits that may make or break how useful the software is for you.
I have been using QuickBooks Pro, Enterprise and Online for the last 18 years and I can tell you without a doubt that the best version is QB Pro, but you should purchase QBO because it’s the future. It’s almost like back in the early 2000’s when PS was fighting for the first place with Xbox. Everyone will tell you that the PS had the best graphics but Xbox had better games and was cheaper. The same thing happens here.
QB pro has better accounting but QBO has better customer experience all around and it’s cheaper. There is only one situation in which I would advocate to get QBO Pro instead of QBO which I will explain later.
Accessibility
QuickBooks Online can be used anywhere if you have an internet connection, on any device, and it can be shared with all relevant people. This is an invaluable tool for managing the startup on the go and collaborating with others. In a post- COVID economy, this is more valuable than ever. The only downside is that you have to have a reliable internet connection to use it.
QuickBooks Desktop doesn’t require the internet because everything is stored and handled on your computer. That also means the information stays on that one computer. This becomes a single point of failure, and you need to spend time managing a backup strategy. It is easy to do with the right tools but many people don’t back up their system on a regular basis. Those that do, rarely test and verify that they can recover from a prior version if it ever became necessary. We have even had to reconstruct months of data for clients that lacked viable backups. You have to purchase more than one license to use the software on multiple devices and people have to access the device to use it.
You can use QuickBooks Desktop remotely if you leverage the services of a hosting provider. Utilizing an Intuit Authorized Commercial QuickBooks Hosting Provider will bring you enterprise-grade security, disaster recovery, and support.
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Automation
Automations like instantly figuring new transactions into your existing reports or automatically recording mileage on trips make managing your books so much more efficient and stress-free.
Both QuickBooks Online and QuickBooks Desktop offer automations, but QuickBooks Online is the clear winner. QuickBooks online automatically syncs your information with your bank, credit card accounts, and the millions of apps who market a widget that makes the flow of information easy between QBO and their product. This is the main reason everyone should get onto QBO.You can design really easy flows to bring information from your website directly to QBO where it can be shared with other apps including things like MailChimp or ShipStation and anything and everything that your imagination can think of.
My favorite integration is Zapier which opens the door to literally connect anything you want to QBO and that is powerful.
Pricing
QuickBooks Online is a subscription deal where you pay a smaller amount each month. This can be much easier to manage for startups who might struggle to pay a larger amount at once for the yearly license to use QuickBooks Desktop.
QuickBooks Desktop is broken into three separate products to suit the needs of different sized businesses and startups. QuickBooks Pro is best for startups and small businesses. QuickBooks Premier is designed for medium-sized businesses and operations. And QuickBooks Enterprise serves large businesses.
Each product increases the number of users, the software accommodates and adds more features they expect a business of that size to likely need.
Ease
Both QuickBooks Online and QuickBooks Desktop are considered easy to learn, but QuickBooks Online is simpler and easier to learn, making it an enticing choice for people who worry about getting acquainted with a new software.
If you need help learning the software, it’s becoming harder to find expertise in QB pro. Young accountants and bookkeepers only used QBO. I have heard accountants complain that it’s too simple but when I ask them if they are using QBO advance, they cannot tell me which leads me to believe they are using the simple or the plus version.
Individual Features
Some individual features make or break the usefulness of QuickBooks for you, and they may or may not be included in different products.
QuickBooks Online is the far superior option in the invoicing department, with the best automated invoicing features as well as custom invoicing options.
Automatic mileage tracking is only possible with QuickBooks Online because it requires you use a mobile device.
Online is also the only one that gives you the option to access QuickBooks Capital lending.
QuickBooks Online offers payroll functions, but you’ll need to pay extra to enjoy payroll functions on QuickBooks Desktop.
QuickBooks Desktop is the best option for advanced inventory tracking, job costing, and reporting tools. Premier and Enterprise provide useful sales orders features. If you have inventory and if your inventory is complex, you need to think about QB Pro or enterprise as an option. There is a lot of detail that goes into inventory management and the desktop versions are by far the best.
Also, if your company is in the cannabis industry, the ability to tag and save more information per transaction is more robust in the desktop version than QBO. Or if your data consumption is beyond normal levels then look into the desktop versions. If this is your case, then I suggest you get the hosting service so you can get the best of the two worlds. It would cost you more, but it would be worth it.
Backups
QBO backs up automatically every few minutes while desktop forces you to come up with a contingency and recovery plan unless a QuickBooks Desktop hosting provider is being used which has a predefined disaster recovery plan which is deployed as a part of their offering.
Focus
With the popularity of cloud-based software, including QuickBooks Online, the desktop version of QuickBooks is taking a backseat even on the QuickBooks website and their innovative drive. This could understandably give you the sense that you shouldn’t get too invested in using QuickBooks Desktop.
Which is Right for You?
If you need to use QuickBooks on the go or share it with people who aren’t on location, you’ll need QuickBooks Online or you’ll have to pay for hosting for this ability on QuickBooks Desktop.
QuickBooks Desktop does provide more advanced accounting features often needed in manufacturing or complex inventory management. If you need those particular features, QuickBooks Online may disappoint you.
QuickBooks Online is also good for those who have never used accounting software before and feel more comfortable with the option that is simplest and easiest to learn.
In most cases, QuickBooks Online is probably your best bet, but you should definitely check the features, the number of users the product accommodates, and the long term cost of the product before making your choice when considering QuickBooks Online vs QuickBooks Desktop as well as the various plans and products under both options to ensure you’re getting what you need.
