Compare QuickBooks Online vs QuickBooks Desktop: Key Differences - YouTube

When the same company offers two good accounting  software products, how can you choose between  

them? That’s the question when it comes to  QuickBooks Online and QuickBooks Desktop.

In this video, we’re going to  explore the differences between  

QuickBooks Online and QuickBooks Desktop. By  comparing each product’s features, pricing,  

user experience, customer support, and reputation,  you’ll be able to confidently choose which  

software is better for your business. And  if you feel this video helps you do that,  

please consider giving us a like and a subscribe!

So I’m going to start off by  highlighting a key difference  

in these two products. QuickBooks Online is  cloud-based software with monthly pricing  

while QuickBooks Desktop is  locally-installed with a license  

pricing model. That point alone may be  the deciding factor for your business.

But if it’s not, let’s do a high-level look at  which product is best for your accounting needs.

You should choose QuickBooks Online if: You want software that is easy to use and learn 

You want to be able to access your accounting  remotely or on-the-go with mobile apps

You want time-saving automations and  

real-time sync with your bank  and other business integrations

You need payment processing integrations so that  your customers can pay invoices directly online

You need international invoicing

You want access to QuickBooks Capital lending

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 automation,  

more integrations, better invoicing, and a unique  built-in lending feature. The downsides are the  

lack of sales orders, lead management, and  other complexities that loyal Desktop users  

may miss (like customizable letter templates,  a built-in calendar, and even spell-check).

You should choose QuickBooks Desktop if:

You are looking for  locally-installed accounting software

You need the industry-specific features of  

QuickBooks Desktop Premier or  QuickBooks Desktop Enterprise

You need sales orders

You have very complex accounting

With QuickBooks Desktop, users receive some of  the most developed accounting tools on the market.  

The software offers comprehensive features, unique  touches like lead management and sales orders,  

industry-specific versions of the software,  and has the potential to be more secure.  

The downsides are that QuickBooks Desktop  lacks the mobility of QBO, has few automations,  

doesn’t offer lending or payment gateway  integrations, and has a steep learning curve  

(although the software is well-organized  and gets easier to navigate with time).

Okay, now let’s dive into some specifics.

QuickBooks Online is designed specifically for  small businesses; however, the new QuickBooks  

Online Advanced plan makes the software  scalable for larger businesses as well.  

The software offers a robust feature set, strong  accounting, online payroll, attractive invoices,  

650+ integrations, and a unique lending feature.

QBO is also significantly easier  to learn and use than QuickBooks  

Desktop. Since the software is cloud-based, QBO  works anywhere you have an internet connection,  

and there are mobile apps to help  you manage your business on the go.

QuickBooks Desktop most often  refers to QuickBooks Desktop  

Pro, although there are actually three  different QuickBooks Desktop products:  

QuickBooks Desktop Pro, QuickBooks Desktop  Premier, and QuickBooks Desktop Enterprise.

The main difference between the three is  that Pro is designed for small businesses,  

Premier for medium business, and  Enterprise for large businesses. As such,  

each plan progresses in terms  of available users and features.

Each desktop version of QuickBooks  offers incredible accounting tools and  

extensive features, including expense tracking,  budgeting, and job costing, 200 integrations,  

and positive customer reviews. It’s worth noting  that QuickBooks Desktop is only available on  

Windows operating systems. Mac users, you’re  going to have to look at QuickBooks for Mac.

Both QuickBooks Online and QuickBooks  Desktop offer a large number of features.  

Even though QuickBooks Desktop has more  comprehensive features in general, there  

are some key features that only QuickBooks Online  has, including lending, international invoicing,  

and mobile apps. So, it really comes down  to which features your business values most.

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 new service may be a much-needed  

peace of mind when it comes to managing  your books and filing small business taxes.

When it comes to invoicing, QuickBooks  Online blows QuickBooks Desktop out of  

the water. QuickBooks Online makes it easy  to create beautiful, customer invoices. The  

designs are clean and modern, making it easy  for customers to understand their invoices.

QuickBooks Desktop’s invoices are cluttered,  outdated, and much harder to customize.

For a comparison of other features, like contact  management, reporting, payroll and financing,  

hit up the link in the description  to read the detailed breakdown.

Now let’s take a moment to look at pricing.

QuickBooks Online and QuickBooks Pro have  two very different pricing structures.

QuickBooks Online has a  monthly SaaS pricing structure.  

There are pricing plans available ranging from  $25-$150/month (with an additional $45/mo+ for  

payroll). Note that QuickBooks Self-Employed is  not specifically covered in this comparison video.

QuickBooks Desktop has a licensing pricing  model and yearly subscription pricing model.  

The prices for QuickBooks Desktop vary depending  on which version of the software you opt for.

It’s hard to say which software is cheaper  because there are so many variables.

If you are going to use  QuickBooks Pro for three years  

and don’t have any additional users,  this option will save you some serious  

money. However, the extra costs of  QuickBooks Desktop add up quickly.

If you have multiple users, use live  bank feeds, and want phone support,  

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 expensive licensing or yearly subscriptions.

In terms of ease of use, 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.

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. The company has worked on updating  its help centers to be more user-friendly,  

but wait times are still long, and there’s  no email support at all. QuickBooks Online’s  

customer service is slightly better in that you  at least don’t have to pay extra for support.

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 about:

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. Despite these  complaints, QuickBooks Online still receives  

high ratings across common customer  reviews sites and has many happy users.

QuickBooks Pro also has its  share of complaints about its:

Steep learning curve Forced upgrades 

Poor customer service

However, most users still view  Quickbooks Desktop favorably,  

and the product receives high marks  on most customer review sites.

So which product sounds like the better  fit for your business? If you need  

another visual comparison, use the  link in the description to view our  

infographic on the key differences between  QuickBooks Online and QuickBooks Desktop.

To recap, QuickBooks Online is  better for business owners that 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 that have complex accounting  needs and require more customizable features.

Check out our website for more, and,  sign up for our newsletter for weekly  

small business recaps and promo  offers on services like QuickBooks.

Thanks for watching Mavericks.