QuickBooks Online vs. Desktop: Which Is Right for Your Business?
Unless you need advanced inventory or industry-specific features, QuickBooks Online is typically a better solution.
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Update: This article previously compared QuickBooks Online to multiple versions of QuickBooks Desktop. However, QuickBooks has since phased out most of its desktop plans. For example, it stopped selling Pro Plus, Premier Plus and Mac Plus in 2024. Now, QuickBooks Enterprise is its only desktop-based option. When we mention QuickBooks Desktop, we're referring to QuickBooks Enterprise.
QuickBooks, a leader in small-business accounting software, offers two core products.
QuickBooks Online is ideal for most small businesses. It has a robust set of features, a user-friendly interface and built-in cloud access.
QuickBooks Enterprise is the only desktop-based solution the company actively sells. It's a good option for more complex businesses that need advanced inventory tracking and reporting. It also offers industry-specific solutions. If the desktop software is too limiting, you can purchase cloud access for extra.
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QuickBooks Online vs. Desktop comparison
| QuickBooks Online | QuickBooks Enterprise | |
|---|---|---|
| Price | $38 per month and up. | $1,873 per year and up. |
| Better for | Most small to midsize businesses that want a cloud-based solution. | Small to midsize businesses that want a desktop solution or need advanced inventory and industry-specific features. |
| Maximum number of users | 1-25. | 1-40. |
| Ease of sharing with accountants | Excellent. You can send email invites to your accountant from within the software. | Good. You can send a copy of your company file to your accountant and import their changes. |
| Scalability | Excellent. Offers four plans to accommodate a range of businesses with different needs; each plan limits the number of users, though. | Good. You can upgrade to higher tiers of QuickBooks Enterprise as your needs change. However, converting your data from one desktop solution to another can be a complex process. Each Enterprise plan comes with one user; additional licenses cost extra. |
| Ease of use | Excellent. QuickBooks Online is user-friendly and has a modern interface. But like other products, there's a learning curve. | Good. QuickBooks Enterprise has a more dated user interface than some cloud-based products and requires prior accounting knowledge to get the most out of the product. Since it’s desktop-based, it’s also less accessible. |
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Why QuickBooks Online is a better choice
Pricing
Since QuickBooks Online is priced as a monthly subscription, it doesn’t require a contract. Plus you can cancel your account at any time. QuickBooks Enterprise's pricing is more complex and depends on the plan tier, the number of users and whether you want cloud access. Additionally, Enterprise is only available as an annual subscription. This makes it a bigger commitment than QuickBooks Online.
» MORE: How much does QuickBooks cost?
Accessibility
You can access QuickBooks Online from anywhere you have an internet connection. And because it’s web-based, you can work with your accountant in real time. The QuickBooks mobile app is also available at no added cost and lets you manage your account on the go.
QuickBooks Enterprise is more limiting. You must purchase additional licenses if you want to access it on multiple computers. While you can add cloud access to QuickBooks Enterprise, it involves an additional fee.
When you might choose QuickBooks Enterprise instead
Advanced inventory management
Both QuickBooks Online Plus and Advanced include inventory tracking. But QuickBooks Enterprise's plans offer more industry-specific capabilities. These include raw material and finished product tracking. You can also use it automate order management. This can be useful for manufacturers, wholesalers and retailers. Just keep in mind you'll need to opt for the Platinum plan or up to access the full suite of automation features.
QuickBooks Enterprise has barcode scanning capabilities too. Business owners just need to download the QuickBooks Desktop mobile app. Then they can use their mobile device as a scanner.
Industry-specific reports
QuickBooks Enterprise plans have industry-specific options for a range of industries. These include construction, manufacturing, wholesale and distribution, retail, nonprofit and professional services.
For example, nonprofits can use the software to run donor contribution summary reports. Manufacturing, wholesale and retail businesses have the ability to forecast product sales. Contractors and professional service businesses can compare revenue by city, customer and job type. QuickBooks Online offers a large selection of reports, but they aren’t industry-specific.
QuickBooks alternatives
Bookkeeping and accounting software | ||
|---|---|---|
| | FreshBooks Accounting $23 per month and up. | |
| | Sage 50 Desktop Accounting $69 per month and up. | |
| | Wave Financial $0 and up. | |
| | Xero $25 per month and up. | |
| | Zoho Books $0 per month and up. | |
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