QuickBooks Online vs. Desktop Software Review (Article, Video Links)

As a contributing writer for QuickBooks, I think about the problems that many company owners face, and how to overcome them to grow the business. I’m a big proponent of using technology to work efficiently, particularly accounting software programs.

 

But should you use QuickBooks Desktop or the Online version?

 

Read on to decide which version is best for your needs.

Interested in video discussion? See links at the bottom of the article.

 

The online option is available on both Mac and PC, but it does require an Internet connection to get access. However, since web access is almost everywhere, the online product can be a useful alternative. In fact, most new QuickBooks users are choosing the online product.

 

Is Accounting Software Important?

 

No business can grow profitably without using accounting software.

 

Now, that a pretty strong statement, but the more I read about and write on business topics, the more I believe this statement.

QuickBooks Online Edition – Free Trial

 

To explain the point, I wrote this article for QuickBooks on why no business should use Excel to account for payroll. Excel documents can get misfiled, and you may end up using the wrong version. If you make an input error, or you don’t link spreadsheet tabs correctly, your payroll calculations will be incorrect. Finally, you may lose files due to a system crash, or by not saving data often enough as you work.

 

If you’re using Excel documents and spending two full days to process payroll for 40 employees, how can you grow to 200 employees?

 

Invest the time and effort to move your payroll processing- and all of your accounting- into a software package. Grow your business and control your time.

 

Why Use Desktop?

 

While a majority of QuickBooks users are migrating on the online version, there are a few reasons to use the desktop software.

 

If you’re a retailer and carry inventory, the desktop version offers more features related to inventory, bill of materials, and cost of sales reporting. Desktop also offers some additional features related to job costing. If you’re in a business that requires you to provide job estimates to customers, for example, you need a job cost accounting process.

 

A service-based business, such as a doctor, lawyer, therapist, or consultant, can use the online version and the superior capabilities.

 

Keep in mind that, if the online version does not offer some of the features you need, you can add hundreds of apps to the online software to meet you accounting requirements. If, for example, you want to flexibility of the online version and you must account for inventory, you may be able to find an app to address that need.

Data Processing

 

As I mentioned above, you need tools to increase productivity so that you can grow your business, and QuickBooks is a great tool to work efficiently. Consider these data processing features:

 

• Statement downloads: The online software can download your bank and credit card statements automatically. After you set up expense and revenue categories, the software can assign each transaction to the desired accounts. This automated process saves time, and makes your bank reconciliation process much easier.

 

• Costs: The desktop version of QuickBooks operates on your PC or Mac, and not on the cloud. As a result, desktop users must pay for many services that are free for online users. If you use desktop, you must pay to download bank statement activity, and to access cloud storage on QuickBooks.

 

• Complex journal entries: The online version lets you post journal entries with multiple accounts payable or accounts receivable line items. Rather than separate a transaction into multiple journal entries, the online software lets you post one large entry, which saves time.

 

Use the online version to work productively from anywhere.

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Management

 

As your business grows, you may have multiple people in your company who need access to QuickBooks and use the app to input data, or to generate reports. Here are some features that allow you to manage your QuickBooks users:

 

• Activity log: The online version provides an activity log, which lists transactions posted by user, and other reports. The software will also report when users log in and out of the system.

 

• End notes: QuickBooks online allows a user to add end notes to a particular report, which can be used to remind or educate users about data in the report.

 

• Professional report pack: Every business owner has a particular set of reports that are the most useful for management. A retailer, for example, may be most concerned about inventory levels, and keeping sufficient inventory on hand for customers. The online software allows you to create a set of reports that you can generate easily.

 

QuickBooks online can help you become a better and more efficient manager.

Remote and Mobile Use

 

Using the online option can increase your productivity, because you can access on work on QuickBooks from anywhere, including from your mobile device. If you’re waiting for a client meeting, for example, you can use the time to invoice a customer, or work on your bank reconciliation.

 

The online software gives you the freedom to plan your work, regardless of location. Here are some examples:

 

• Scan receipts: If you have a receipt that you need to file as support for an accounting transaction, you can take a photo with your mobile device, and attach the receipt photo to a transaction using the mobile app.

 

• Invoicing: QuickBooks online lets you automatically schedule and send invoices. This app saves you time, and allows you to get invoices out faster- and speed up cash collections.

 

• Easier monitoring / follow up: If you need to find information or take action, you don’t have to wait until you get to your desk. If, for example, you need to email a client regarding an outstanding invoice, you can do it from your laptop or mobile device.

 

• Working with an accountant: You can set up the online software so that your accountant can access your books remotely. This is particularly useful, because the accountant can make corrections and ask questions quickly, which speeds up the accounting process.

 

• Linking to apps: The online software allows you to link to over 300 cloud-based apps.

 

Perhaps most important, QuickBooks Online resides on the cloud, so you don’t have to download software to your PC or Mac. Your data can be backed up automatically on the cloud, so that you reduce the risk of losing data.

 

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Making the Switch

 

If you want to move from QuickBooks desktop to the online version, you can get plenty of help to make the process happen. Here are some important points to consider:

 

• Existing desktop data: When you move to the online version, QuickBooks copies your existing desktop data and moves it into the online product, so your original data is not changed.

 

• Software: The online version provides automated software upgrades. The desktop version, on the other hand, requires users to install new upgrades. If you use multiple desktop machines, each PC or Mac will need the upgrade.

 

I’m a big fan of QuickBooks Online, and I think this software is a great tool to increase sales and profits.

Video Links:

Video One

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl