QuickBooks Online vs QuickBooks Desktop: A detailed comparison (2024)

Cloud-based powerhouse

Cloud-based accounting solution is a strong selling point of QuickBooks Online. 

Your team can access the company’s financial data securely from any device with an internet connection.

For example, your team can create automated workflows and use an intuitive mobile app to streamline financial processes like accounts payable/receivable management on the go.

Data security 

While QuickBooks Online offers robust security features, your data is still in the hands of the QuickBooks cloud platform, which is subject to potential data breaches.

This is a common problem among major brands offering cloud solutions like Microsoft, Apple, Notion, and Google. That is why, you should consider specific measures to safeguard user data (e.g., data encryption, access controls).

Easy collaboration

Real-time data access and editing capabilities make QuickBooks Online ideal for remote teams. 

User access controls ensure data security while allowing you to set permission levels for different team members. 

You can integrate seamlessly with communication tools of your choice for enhanced collaboration and streamlined workflows.

For example, when the tax season comes around, you can invite your trusted tax advisors to check your financial statements, ensure the numbers are correct, and leave comments 

Ideal for SMEs

While QuickBooks Online allows for remote collaboration, it can only be best for small and medium businesses (Up to 25 users maximum for the QuickBooks Online Advanced). 

If you work for a big corporation requiring highly specialized functionalities (e.g., project management for contractors), QuickBooks Online may hold your company operations down.

Customization king

For businesses seeking a highly tailored accounting experience, QuickBooks Desktop reigns supreme. 

Extensive customization options allow you to configure the software to perfectly match your specific business needs. 

Industry-specific editions cater to the unique requirements of sectors like manufacturing or construction. 

Collaboration limitations

Adding new users requires additional software licenses, potentially impacting scalability as your business grows.

Offline accessibility

For the majority of businesses, working with the installed desktop software is still the preferred method. 

The idea of automatic backup on the cloud may seem ideal, but it is not a much-needed feature since you can still do it with the combo Crtl+S (Which I think is a default action of all computer users).

Your team can still maintain control over financial records with offline functionality.

What if your company still wants to take advantage of cloud storage? You can still do it with QuickBooks Desktop since there are many hosting solutions sorely for QuickBooks Desktop users. (Even QuickBooks offers the cloud service if you want to)

You can combine the power of cloud hosting while using your QuickBooks Desktop version.

Data accessibility

Another major drawback is that data is stored locally on the installed computer. So if you want to have team members work on the same file, you have to get it in the common storage space, hindering collaboration in certain workflows.

Data security and backup 

The cloud-based storage with advanced data encryption protocols and multiple layers of security ensures your data is always secure

Moreover, the automatic backup features and disaster recovery ensure that your company data loss risk is kept at a minimum.

One special benefit of QuickBooks Online is that which each updated version, you gain access to new security features, which, if you are a QuickBooks Desktop user, are only accessible for the newest desktop version.

You can utilize the power of hosted data using Intui cloud service or your own hosting service provider. 

No matter what you choose, you have complete control over your data and can implement extra robust security measures like firewalls, endpoint security, and antivirus software to protect against potential threats. 

Your cloud service can help with r regular backups to ensure data recovery in case of hardware failure. 

User access and Control

Both versions offer built-in security features like user access controls and password protection. 

QuickBooks Online takes it a step further with multi-factor authentication (MFA), requiring an additional verification step (e.g., code from your phone) for login attempts. 

This adds an extra layer of defense against unauthorized access.

 Role-based access control (RBAC) allows you to define specific permissions for different users within your organization, ensuring they can only access the data they need for their roles.

Intuit team support

You can reach out to the QuickBooks support team via phone, email, or live chat on the QuickBooks Online interface 24/7

For more information, you can read the article here: QuickBooks Online Support 

You can hire a QuickBooks-certified bookkeeper to help do your book

You can also use additional resources such as video tutorials, webinars, and an extensive knowledge base, community forum

Quick support since the team can access the s

You can ask for support from the Intuit team the same as for QuickBooks Online. 

However, since QuickBooks Desktop is only available in the U.S., UK, and Canada, if you live outside these countries, Intuit can not support you further.

For more information, you can read the article here: QuickBooks Desktop support  

Additional video training and community forum is often the go-to approach of users

Third-party support

You can easily find assistance anywhere in the world you want from freelancers to consulting firms.

The level of expertise from third parties is rather consistent due to the international QuickBooks Online version available worldwide

You can only find support from third parties in the U.S, Canada, and the UK

The level of expertise may not be consistent because QuickBooks Desktop has so many versions in the market (Enterprise 21, 22, 23, 24)

Some experts may miss out on the latest features and improvements if they only support the old version.

Pricing model

As we can see in the image, QuickBooks Online operates on a subscription-based model with monthly or annual fees.

You can reach out to the QuickBooks support team via phone, email, or live chat on the QuickBooks Online interface 24/7

For more information, you can read the article here: QuickBooks Online Support 

You can hire a QuickBooks-certified bookkeeper to help do your book

You can also use additional resources such as video tutorials, webinars, and an extensive knowledge base, community forum

Quick support since the team can access the s

You can ask

You have 2 options to buy the Desktop version: one-time licenses and subscriptions.

 One-time licenses: These require a one-time purchase but need upgrades every three years to maintain features and support. Using an outdated version might limit functionalities like payroll and online banking. Additionally, security updates and technical assistance cease after three years.

For example, if you purchase a one-time license of QuickBooks Desktop 2021, you are advised to upgrade by 2024. If your computer's operating system is still compatible with the old QuickBooks Desktop, you can continue using it. 

Subscriptions: These require annual renewal but allow access to the latest version and its features. Failing to renew will disable the software entirely.  You can also upgrade to a newer version without additional cost.  

If you do not renew the subscription, you won't be able to use the software at all. Your company file will remain on your computer, but you'll need to re-activate the service to open or view the data.

Please check the policy of QuickBooks Desktop by clicking this link to learn more about why there are versions that will be discontinued: QuickBooks Desktop service discontinuation policy.

for support from the Intuit team the same as for QuickBooks Online. 

However, since QuickBooks Desktop is only available in the U.S., UK, and Canada, if you live outside these countries, Intuit can not support you further.

For more information, you can read the article here: QuickBooks Desktop support  

Additional video training, and community forum is often the go-to approach of users

Pricing plan

QuickBooks Online offers tiered pricing plans to cater to different business sizes and requirements. Their plans include Self-employed, Simple Start, Essentials, Plus, and Advanced. 

Self-Employed: For freelancers and sole proprietors, offering basic features for managing income and expenses (price may vary depending on additional tax and CPA services).

• Simple Start: For startups or small businesses with essential features like invoicing, bill payments, and bank reconciliation.
• Essentials: This plan expands on Simple Start by including features like project tracking and inventory management, suitable for growing businesses.
• Plus: For mid-sized businesses with additional functionalities like advanced inventory, budgeting, and time tracking.
• Advanced: The most comprehensive plan, offering maximum features and automation for larger businesses.

This option allows you to scale your subscription as your needs evolve.

You only pay what you need at any given time, you can start with a basic plan and upgrade as your business grows if your company expands in the future, you can upgrade the license whenever you want.

QuickBooks Desktop offers different editions such as Pro, Premier, and Enterprise.

These editions are tailored to specific industries and provide advanced features that cater to their unique requirements. Enterprise plan is the most advanced that you can get.

QuickBooks Enterprise offers tiered pricing plans catering to different business needs:

• Gold: Provides core functionalities, business insights, and payroll processing.
• Platinum: Expands on Gold with robust features tailored to specific industries, including advanced inventory management and automated pricing rules.
• Diamond: The most powerful plan, offering maximum functionality and automation for large businesses. It comes in user increments and requires separate hosting.

QuickBooks Time Elite, an add-on for advanced time tracking, is priced per user per month.

Annual fee

(This is not the final fee)

The fee can be changed based on potential add-on fees and user seats

• Self-Employed: Varied
• Simple Start: $360/year
• Essentials: $720/year
• Plus: $1,080/year
• Advanced: $1,440/year

The price is reasonable for any industry, from start-ups to major corporations 

• Gold:  $1922/year
• Platinum:  $2363/year
• Diamond $4668/year

While the pricing for QuickBooks Desktop may seem higher upfront compared to QuickBooks Online, it's incredibly effective considering the long-term benefits and cost-effectiveness if you work in a specific industry.