Accountants, ProAdvisors and small business owners are commonly asked which version of QuickBooks is best for small businesses. While there are pros and cons to both QuickBooks Online and QuickBooks Desktop, a careful analysis of what each program has to offer can help small business owners make more informed decisions.
Advantages of QuickBooks Online
One of the primary strengths of QuickBooks Online is that it runs well, so long as the business owner has a good internet connection. Additionally, multiple users can access QuickBooks from the browser. Without payroll options, the program runs about $7 to $13 per user. Business owners can rest assured that their financial data is safe with automatic backup. Additionally, the system is set up to allow for downloads of bank and credit card transactions. QuickBooks Online Accountant provides a system that helps accountants invite, bill and manage clients from one device.
Disadvantages of QuickBooks Online
Individuals who own multiple businesses incur an additional cost for each business, requiring a subscription for each. There are only limited features available on this platform when compared to QuickBooks Desktop. Inventory and job costing do not provide the depth of information that is available through QuickBooks Desktop. Intuit is aggressively pushing its QuickBooks Online product over other versions of the trusted accounting program and attempting to improve the system.
Advantages of QuickBooks Desktop Strengths
QuickBooks Desktop allows individuals with more than one business to use the same program without an additional cost. You can run multiple company files at no additional cost. The program has an established longevity in the market. There are also a plethora of reading materials and learning opportunities for Desktop users. Consultants and users benefit from improvements that are made periodically. There are also a variety of third-party add-ons that help extend the lifeline of the product.
Disadvantages of QuickBooks Desktop
While QuickBooks Online customers benefit from anytime, anywhere access, QuickBooks Desktop users have to pay a premium for this service, often between $30 to $60 per month, per user. The price of the software program continues to go up each year. There are also reported inconsistencies between the product on Mac and Windows. Users may encounter issues after a periodic update has been installed.
Bottom Line
The product that is best for your company depends on your preferences and goals. For example, if you want to have control of your files and run multiple companies, QuickBooks Desktop is probably a better fit for your company. However, if you want to tap into cloud solutions, QuickBooks Online is probably the better solution for you. A QuickBooks ProAdvisor can assist you in finding the product that is best for you.