QuickBooks Online vs QuickBooks Desktop: Which Should You Be Using?

What each one is

QuickBooks Online is cloud accounting software. Cloud means you log in through a web browser instead of installing software on one computer. Your bookkeeper and your CPA can both log in at the same time, from different places, and look at the same numbers.

QuickBooks Desktop is software you install on one computer. The books live on that computer, or on a shared drive. To work on it from somewhere else, you usually need remote access to that one machine. That changes who can see the books and when.

The real choice is about access. Cloud means many people can reach the books from anywhere. Desktop means the books stay in one place unless you set up remote access. For a remote bookkeeping firm like ours, cloud is the natural fit. For a business where one person keeps the books in one office, Desktop can still work.

How QuickBooks Online is built

QuickBooks Online has four plans named Simple Start, Essentials, Plus and Advanced. The number of paid users grows by plan, roughly 1, 3, 5 and 25. So if more than one person needs to log in, you move up a plan.

Bill management and time tracking start at Essentials. Inventory, purchase orders, class and location tracking, and project profit are on Plus and Advanced. Advanced adds more users, custom roles and analytics. The tools you get depend on the plan you pick.

It also has a very large app marketplace. If you use other software in your business, there is a good chance it connects. Many bookkeepers and CPAs already know it, which makes the year end handoff smoother. Bank feeds bring transactions in on their own, so the work does not stop when you travel.

Plan names, limits and prices change often. Check Intuit's own pricing page before you choose. We never state prices here.

How QuickBooks Desktop is built

QuickBooks Desktop comes in versions like Pro Plus, Premier Plus, Mac Plus and Enterprise. After September 30, 2024, Intuit stopped selling new Pro Plus, Premier Plus and Mac Plus subscriptions to new United States customers. Enterprise is still sold. If you already have a Desktop subscription, you can keep renewing it for now.

Desktop has strengths. Some owners like that the books live on their own computer, not in the cloud. Some kinds of work, like heavy inventory or job costing, have long been strong in Desktop. The speed can feel fast because it runs on your own machine.

The trade off is access and upkeep. Only the people who can reach that computer can work on the books. Older versions lose support, bank feeds and other services at their end of support dates, so you need to check Intuit's support schedule. When a version stops getting bank feeds, the transactions stop coming in on their own, and the work gets harder.

QuickBooks Online vs Desktop side by side

A made up example for teaching

How we do it

We are QuickBooks Online Accountants (QBOA), so we work in the accountant side of QuickBooks Online every day. We work in Xero too. We do not work inside QuickBooks Desktop.

We work inside your QuickBooks Online or Xero file. You do not have to switch. If you already use one of them, we log in there and do the work. If you are on Desktop, we help you move to QuickBooks Online or Xero. A move needs planning, and we clean the books first so errors do not carry into the new file.

We start with clean and reconciled books. That means we reconcile every account and sort every transaction before we move forward. Reconcile means to match your software balance to your bank balance and explain every cent of the difference.

Then we close each month by the 10th. We categorize and reconcile in the first week. We send you one list of questions on day 8. We lock the period on day 10 and send your reports. The monthly routine matters more than the brand. Reconciled accounts, the same categories every time, and a month end close are what make the books trustworthy.

Mistakes we fix

• Staying on a Desktop version past its end of support date, then losing bank feeds.
• Switching to cloud without cleaning the books first, so the same errors show up again.
• Letting bank feeds disconnect, so transactions stop flowing and the month falls behind.
• Using too many categories, so the reports stop being useful.
• Tracking income in one system and expenses in another that never talk to each other.

What we do

We do monthly bookkeeping, and only bookkeeping. We work in QuickBooks Online or Xero, we close your books by the 10th, and we hand clean reports to your CPA at year end. Book a free 20 minute call and we will help you pick the system that fits your business.

Questions people ask

Is QuickBooks Desktop going away? Intuit still sells Enterprise to new customers. It stopped selling new Pro Plus, Premier Plus and Mac Plus subscriptions to new United States customers after September 30, 2024. Existing subscribers can keep renewing for now. Check Intuit's support schedule for end of support dates.

Do I have to switch to work with you? We work in QuickBooks Online and Xero. If you are on Desktop, we help you move to one of those. If you have no software yet, we help you set one up.

Will moving to QuickBooks Online fix my messy books? No. A move needs planning, and you should clean the books first so errors do not carry into the new file. If your current tool works and the books are clean, moving rarely helps on its own.

Can my CPA still use my books after I move? Yes. Many CPAs already know QuickBooks Online. When your CPA knows the system, the year end handoff is faster and you answer fewer questions.