Quickbooks Online vs Quickbooks Desktop
Opinion from the small business accountants
Since we are a CPA firm focused on small business accounting and payroll, we get asked a lot about which software is best to use. There are several options for small businesses to choose from. The biggest player in this market is Intuit and that is the focus of today’s piece. They have two options for small business accounting and payroll in their online and desktop versions.
The Desktop Version
This is software that you download and install on your own network. The data files are stored on the company computer or network and is only accessible with access to that network. All monthly accounting functions can be done on this software as well as running your payroll. Electronic deposits and filing of federal payroll tax returns can be performed within the software. Depending on the state, you may also be able to electronically file and pay state taxes.
It is important to note that Quickbooks no longer offers the desktop version for sale to new subscribers. Existing subscribers can continue to renew the software, but the prices have increased. Furthermore, the license used to last for three years, but Intuit now requires an annual renewal so you can take advantage of features like payroll and payments.
The Online Version
The online version is exactly what it would seem – it is the online version of the popular accounting software. No download is required when purchasing this software. All you need is a browser and you can get started. There are various subscription levels available with each level adding features not found in the previous level. The fee is paid on a monthly basis. Intuit typically provides some level of discount for the first few months and then increases the price.
Each software has its pros and cons, but it is clear that Intuit is attempting to obsolete the desktop version step by step.
Where the desktop version excels
The desktop version has been around for a long time and is a very well developed piece of accounting software that will meet the needs of most small businesses. Our accountants love the ease of use and prefer using the payroll within desktop as opposed to the online version. The accounting software just works better than the online version; however, we can see that the online version is a lot better than it used to be.
While our team really prefers desktop, it simply falls down when it comes to collaborating with our clients. Sharing files requires making a backup and sharing this very large file. Accountants changes can be sent back to a client after adjustments are made by the accounting firm.
Where the online version excels
While the software is just not as robust as the desktop version, the real advantage is being able to collaborate in real time with clients. A client and their small business accounting firm can have access to the data at the same time. All those journal entries made when preparing a tax return only need to be made once!
The online version also excels at automatic bank and credit card feeds. While this is possible in the desktop version, our team has found it just does not perform nearly as well as the online version. While we would still give the edge to desktop for managing a more complex payroll, the online version is much better at automating payments and tax report filings. It also performs much better with the state payments and filings.
The Bottom Line
If you don’t already have the desktop version, there is no discussion – sign up for the online version. We prefer the well-built interface of the desktop version, but the writing is on the wall - it is online or bust. Intuit is slowly killing the desktop version and is putting their resources to the online version.
We regularly help small businesses set up their accounting and payroll systems and would love to discuss your situation. Feel free to schedule a free discovery call and let’s talk.