Both have a lot going for them, but there are some key differences between QuickBooks Desktop and Online. Learn what they are in our comparison.
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Are you trying to choose between QuickBooks Online vs. Desktop and wondering which is better? What’s the difference between these two QuickBooks products anyway?
Our complete QuickBooks Online vs. Desktop comparison covers key differences, pricing, features, and usability, so you can easily decide whether QuickBooks Online or QuickBooks Desktop is right for your business.
| QuickBooks Online | QuickBooks Desktop | |
|---|---|---|
| Pricing | $30-$200/month | $549.99/year+ |
| Installation Method | Cloud-based | Locally-installed |
| Number Of User Seats | 1-25 | 1-40 |
| Key Features |
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Table of Contents
- QuickBooks Online VS Desktop
- What’s The Difference Between QuickBooks Online VS Desktop?
- Only QuickBooks Online Offers…
- Only QuickBooks Desktop Offers…
- QuickBooks Online VS Desktop: Pricing
- QuickBooks Online VS Desktop: Features
- Accounting
- Invoicing
- Contact Management
- Reporting
- Payroll
- Sales Orders
- Industry-Specific Features
- Mobile Apps
- Usability
- Integrations
- Customer Service
- QuickBooks Online VS Desktop Reviews: Which Do Users Like Better?
- Is QuickBooks Online Or QuickBooks Desktop Better For My Business?
- Choose QuickBooks Online If…
- Choose QuickBooks Desktop If…
- QuickBooks Desktop VS Online Comparison: The Final Verdict
- QuickBooks Online VS Desktop FAQs
- Is QuickBooks Online better than Desktop?
- What's the difference between QuickBooks Online and QuickBooks Desktop Pro?
- Will QuickBooks Desktop be phased out?
- Is QuickBooks Online or QuickBooks Desktop cheaper?
- How do I switch from QuickBooks Desktop to QuickBooks Online?
- Can I switch from QuickBooks Online to Desktop?
QuickBooks Online VS Desktop
In the battle between QuickBooks Online versus Desktop, QuickBooks Online is the more flexible solution and can meet the needs of more small businesses. With two software solutions that are very alike, it’s best to focus on the differences between QuickBooks Online and QuickBooks Desktop that are most important to potential adopters.
Here’s a head-to-head comparison of QuickBooks Online versus Desktop:
- Pricing: QuickBooks Online starts at $30/month, while QuickBooks Desktop pricing starts at $549/year.
- Integrations: QuickBooks Online supports 650+ integrations, while QuickBooks Desktop is limited to just 250+ integrations.
- Hosting: QuickBooks Online is cloud-based and can be accessed anywhere with an internet connection and browser. QuickBooks Desktop is locally-installed but may be self-hosted (added cost) to increase access points.
- Industry-Specificity: While QuickBooks Desktop offers seven industry-specific versions, QuickBooks Online’s plethora of integrations makes it flexible enough to cover the needs of businesses across multiple industries.
- Software Longevity: Intuit sunsets older desktop software versions. Most recently, QuickBooks Desktop 2020 versions are being retired and will no longer support core add-on functions, such as payroll, credit card processing, support, and more. This is not a concern for QuickBooks Online.
QuickBooks Online is a more attractive option for budget-conscious small business owners looking for a flexible software solution.
What’s The Difference Between QuickBooks Online VS Desktop?
The main difference between QuickBooks Online and QuickBooks Desktop is that QuickBooks Online is cloud-based accounting software, and QuickBooks Desktop is locally installed.
Because of this, QuickBooks Online is much easier to use and has many more integrations and time-saving invoicing automations, while QuickBooks Desktop offers more advanced accounting and reporting features and optional industry-specific QuickBooks versions for certain types of businesses (construction, nonprofits, manufacturing, etc.).
Here is a quick breakdown of QuickBooks Online vs. Desktop’s main similarities and differences.
Both QuickBooks Desktop & Online Offer
- Strong accounting features
- Hundreds of integrations
- Invoicing
- Expense tracking
- Contact management
- Inventory
- Time tracking
- Project management
- Budgeting
- Reporting
- Tax support
- Payroll add-ons
- Mobile apps
Only QuickBooks Online Offers…
- Fully cloud-based format
- Mac compatibility
- 600 additional integrations
- High-quality invoice designs
- The ability to auto-schedule invoices
- Invoicing in multiple languages
- Optional live bookkeeping support
Only QuickBooks Desktop Offers…
- Locally-installed format
- Sales orders
- 50 additional reports
- Optional industry-specific features
- Optional industry-specific reporting
QuickBooks Online VS Desktop: Pricing
| Price | Best For | |
|---|---|---|
| QuickBooks Online | $30+/month | Small to medium businesses with up to 25 users |
| QuickBooks Desktop Pro | $549.99+/year | Small to medium businesses with 1 to 3 users |
| QuickBooks Desktop Premier | $799.99+/year | Medium and niche industry businesses with 1 to 5 users |
| QuickBooks Desktop Enterprise | $1,340+/year | Medium to large businesses with up to 40 users |
QuickBooks Online and QuickBooks Pro have two different pricing structures.
QuickBooks Online has a monthly SaaS pricing structure. Four pricing plans for QuickBooks Online are available, ranging from $30 to $200/month (with an additional $45+/month for payroll).
QuickBooks Desktop has a yearly subscription pricing model. The prices for QuickBooks Desktop vary depending on which version of the software you opt for: QuickBooks Pro, QuickBooks Premier, or QuickBooks Enterprise.
QuickBooks Pro is geared toward small to medium businesses and starts at $549.99/year for a single user. QuickBooks Pro 2023 must be purchased through a reseller or a phone call with QuickBooks Sales.
QuickBooks Premier is suited for medium and niche industry businesses and starts at $799.99/year for a single user.
QuickBooks Enterprise is designed for large businesses or small enterprises and starts at $1,340/year. You can add payroll, more users, and cloud hosting for additional fees.
It’s hard to say which software is cheaper because there are so many variables. But there are some general guidelines to know which version might be the one for your business (and your budget).
- QuickBooks Desktop Pricing: QuickBooks Pro is likely the better option ifyou have a single user and want locally-installed software with advanced features. However, the extra costs for QuickBooks Desktop add up quickly, particularly if you have more than one user.
- QuickBooks Online Pricing: If you have multiple users and use live bank feeds, QuickBooks Online will probably be a better bet. The monthly pricing structure also works better for small businesses that don’t have the cash flow for yearly subscriptions.
We recommend crunching the numbers to decide whether the online or desktop versions of QuickBooks are right for your specific business.
QuickBooks Online VS Desktop: Features
| Feature* | QuickBooks Online | QuickBooks Desktop |
|---|---|---|
| Invoicing | ||
| Estimates | ||
| Client Portal | ||
| Contact Management | ||
| Bank Reconciliation | ||
| Expense Tracking | ||
| Chart Of Accounts | ||
| Accounts Payable | ||
| Inventory | ||
| Time Tracking | ||
| Project Management | ||
| Budgeting | ||
| Tax Support | ||
| Built-In Lending | ||
| Reporting |
*Some features are only available on select plans.
Both QuickBooks Online and QuickBooks Desktop offer a large number of features. While they share many of the same features, QuickBooks Desktop’s features are often more developed, except when it comes to invoicing.
Even though QB Desktop has more comprehensive features in general, there are some key features that only QuickBooks Online has, such as international invoicing. So it really comes down to which features your business values most.
Here’s a breakdown of how each program’s specific features compare.
Accounting
QuickBooks Online and QuickBooks Desktop operate on true double-entry accounting principles and have both accrual and cash-basis accounting. Each offers a detailed chart of accounts, journal entries, bank reconciliation, accounts payable, accounts receivable, and the basic reports needed to run a company. However, QuickBooks Desktop offers better reporting and supports more complex accounting.
One of the biggest differences here is that QuickBooks Online now offers a bookkeeping service called QuickBooks Live Bookkeeping, where you can pay for professional support from certified QBO accountants and CPAs. For small business owners new to the accounting scene, this service may bring much-needed peace of mind when managing your books and filing small business taxes.
Invoicing
When it comes to invoicing, QuickBooks Online blows QuickBooks Desktop out of the water. QuickBooks Online makes it easy to create beautiful custom invoices. The designs are clean and modern, making it easy for customers to understand their invoices. Here’s an example of what a QBO invoice looks like:
QuickBooks Desktop’s invoices are cluttered, outdated, and much harder to customize. Here’s what an invoice made with QuickBooks Desktop looks like:
In addition to having better invoice template designs, QuickBooks Online also has better automations:
- Recurring invoices
- Batch invoicing and progress invoicing
- Sending invoice reminders to late-paying customers
- The ability to auto-schedule invoices
- A client portal where customers can make online payments
- Invoice tracking so that you can easily see if a client has received, viewed, or paid their invoice
- Having your invoices translated into six different languages for international customers
With QuickBooks Desktop, you can set recurring invoices, send payment reminders, send batch invoices, and track invoices, but you’ll miss out on many of the other modern, cloud-based automations that QBO provides.
Contact Management
While QuickBooks Online and QuickBooks Desktop offer contact management, only QuickBooks Desktop allows you to manage and track leads as well as contacts.
Reporting
QuickBooks Online offers over 80 reports depending on your plan, whereas QuickBooks Desktop Pro has over 130 reports. QuickBooks Desktop Premier and Quickbooks Desktop Enterprise have even more reports (especially if you opt for the industry-specific versions of these programs).
Both include the basic reports you’d expect to find with accounting software, such as a balance sheet, a Profit & Loss report, a cash flow statement, etc.
Payroll
With QuickBooks Online, you can add QuickBooks Online Payroll starting at $45/month. Read our full Intuit Online Payroll review for more information.
If you go with QuickBooks Desktop Pro, you can purchase a payroll add-on for $50/month or $500/year. Additionally, you may opt to subscribe to QuickBooks Desktop Pro Plus + Payroll, which includes QuickBooks Desktop Pro software plus Enhanced Payroll. This plan starts at $849.99/year.
QuickBooks Premier also has a payroll add-on, or you can purchase the QuickBooks Premier + Payroll annual plan. QuickBooks Enterprise Gold and Platinum plans include Enhanced Payroll, while Enterprise Diamond includes Assisted Payroll.
Sales Orders
If your business needs sales orders, QuickBooks Desktop is your only option. Although Intuit has talked about adding sales orders to QuickBooks Online, this feature is only available with QuickBooks Desktop products at this time.
Industry-Specific Features
One unique aspect of QuickBooks Desktop Premier and QuickBooks Desktop Enterprise is that you can opt for any industry-specific version of the software instead of the standard version. These industries include:
- General contractor
- Manufacturing and wholesale
- Nonprofit
- Accountant
- Professional services
- Retail
These versions give business owners more features and reports geared toward their industry. You can learn more in our guide to the industry-specific editions of QuickBooks Enterprise.
Mobile Apps
One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, a mobile app is now available with the introduction of QuickBooks Desktop 2022. QuickBooks Online also has mobile apps for iOS and Android.
Usability
The online version of QuickBooks is much easier to use than the desktop version.
One of the most common complaints about QuickBooks Desktop is its steep learning curve.
Accountants often find QuickBooks Pro and Premier to be more traditional, but you don’t have to be an accountant or professional bookkeeper to learn QuickBooks Online. Granted, you don’t have to be an accountant to learn QuickBooks Desktop either, but if you are new to accounting, you will need a lot of time to learn the program.
Integrations
Both QuickBooks Online and QuickBooks Pro offer a good number of helpful integrations and add-on products. However, QuickBooks Online offers over 650 integrations to QuickBooks Pro’s 250+ integrations.
In addition to having more integrations, QuickBooks Online also hasbetter integrations. QBO’s integrations cover more business needs and include multiple payment gateway options. In contrast, QuickBooks Desktop offers hardly any payment gateways, making it difficult for the modern merchant to accept online invoice payments easily.
Customer Service
Okay, let’s be honest. Customer service has never been Intuit’s strong suit. Both QuickBooks Online and QuickBooks Pro and Premier have notoriously poor customer support (QuickBooks Enterprise support has better priority support).
The company has updated its help centers to be more user-friendly, but there’s still no email support. Both options, however, are working to reduce long hold times on the phone by now offering a callback feature.
QuickBooks Online VS Desktop Reviews: Which Do Users Like Better?
Both programs have their share of positive and negative reviews, although, in comparison, QuickBooks Online has received more complaints. Some of the most common criticisms are:
- Limited mobile apps
- Slow run time
- Bugs
- Poor customer support
Many users also complain that QuickBooks Online doesn’t compare to QuickBooks Pro in terms of features and quality. However, the majority of reviews are positive, with QuickBooks Online receiving 4.32/5 stars (based on 5,960+ reviews) on Software Advice and 4/5 stars (based on 2,980+ reviews) on G2.
QuickBooks Online is praised for its mobility, ease of use, feature selection, time-saving automations, and integrations.
The most common complaints surrounding QuickBooks Pro include the following:
- Steep learning curve
- Expensive pricing
- Poor customer service
However, most users still view Quickbooks Desktop favorably, and the product receives high marks on most customer review sites. The software receives 4.35/5 (based on 1,620+ reviews) on Software Advice and 8.4/10 (based on 870+ reviews) on TrustRadius. QuickBooks Pro is praised for its strong accounting, ample features, reliability, and reporting.
Overall, QuickBooks Pro reviews are more favorable, but both user bases have good and bad things to say about each product.
Is QuickBooks Online Or QuickBooks Desktop Better For My Business?
Deciding between QuickBooks Desktop vs. Online can be difficult. Here’s a quick way to tell which version of QuickBooks is right for your business.
Choose QuickBooks Online If…
- You want software that is easy to use and learn
- You want to access your accounting remotely with mobile apps
- You want time-saving automations and integrations
- You want to use payment processing integrations for online invoice payments
- You need international invoicing
Choose QuickBooks Desktop If…
- You want locally-installed software accounting software
- You need the industry-specific features of QuickBooks Premier or QuickBooks Enterprise
- You need sales orders
- You have very complex accounting
QuickBooks Desktop VS Online Comparison: The Final Verdict
Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features. Each software has its highs and lows.
With QuickBooks Online, users receive many of the same great features while gaining the mobility of cloud-based software. QuickBooks Online is easier to use and has more automations, more integrations, and better invoicing. The downsides are the lack of sales orders, lead management, and other complexities that loyal Desktop users may miss (such as customizable letter templates, a built-in calendar, and even spellcheck).
With QuickBooks Desktop, users receive some of the most developed accounting tools on the market. The software offers comprehensive features, unique touches (such as lead management and sales orders), industry-specific versions of the software, and the potential to be more secure.
The downsides are that QuickBooks Desktop lacks the mobility of QBO, has few automations and limited payment gateways, and has a steep learning curve (although the software is well-organized and gets easier to navigate with time).
Ultimately, your specific business’s size, type, and needs are the real deciding factors. Read our full QuickBooks OnlineandQuickBooks Pro reviews for a more in-depth look at each software’s features, pricing, and use cases.
- Related:
QuickBooks Online VS Desktop FAQs
Is QuickBooks Online better than Desktop?
QuickBooks Online is better for business owners who want easy-to-use cloud-based accounting that includes anywhere online access, mobile apps, and tons of integrations with other business apps.
QuickBooks Desktop is better for small to large-sized businesses with complex accounting needs requiring more customizable features.
What's the difference between QuickBooks Online and QuickBooks Desktop Pro?
QuickBooks Online is a software-as-a-service accounting program that is hosted online, while QuickBooks Desktop is a locally-installed accounting program with a yearly subscription pricing model.
Both offer strong accounting, though QuickBooks Desktop has more features and is more customizable, whereas QuickBooks Online has more automations and is easier to learn and use.
Will QuickBooks Desktop be phased out?
At the time of this writing, QuickBooks has noted that it has no plans on sunsetting the QuickBooks Desktop software.
However, Intuit’s push for its QuickBooks Online software and discontinuation of its Desktop offering in the UK has caused users to worry about possible sunsetting.
Is QuickBooks Online or QuickBooks Desktop cheaper?
It depends! QuickBooks Online has a cheaper monthly cost and is more affordable if you have a lot of employees who will be using the software. QuickBooks Desktop Pro may be cheaper if you do not need additional users or add-ons such as payroll.
The other kicker is that while QuickBooks Desktop could be cheaper in the long run, many small businesses may not have the cash flow to pay a lump sum subscription (especially if they need additional user licenses).
QuickBooks Online’s monthly subscription may be easier for some small businesses to fit into their financial situation. The good news is, whichever you purchase, accounting software counts as a tax-deductible expense.
How do I switch from QuickBooks Desktop to QuickBooks Online?
QuickBooks tries to make it easy to switch from QuickBooks Desktop to QuickBooks Online. You simply go to “Company” in the top menu and select “Export File To QuickBooks Online.”
I recommend saving a backup of your QuickBooks Desktop company file in case of any issues. While most information transfers well to QBO, not all of your information will convert from Desktop.
Can I switch from QuickBooks Online to Desktop?
You can switch from QuickBooks Online to Desktop, and many users who are used to traditional accounting and working with QuickBooks tend to do so after giving QBO a try.
Intuit QuickBooks has been pushing its online products, so switching from QuickBooks Online to Desktop isn’t as easy, but it is possible. Go to the Settings gear icon and click “Export Data.” Then, select your reason for leaving. You can then click on a link that says, “Moving to QuickBooks Desktop? Learn More.” This will guide you through exporting your data and creating a backup company file.
