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). These versions give business owners more features and reports geared toward their industry. QuickBooks Online offers over 80 reports depending on your plan, best accounting software in 2021 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). Four pricing plans for QuickBooks Online are available, ranging from $35 to $235/month (with an additional $50+/month for payroll). In contrast, QuickBooks Desktop tends to have a steeper learning curve, offers fewer integrations, and has had its previous versions discontinued by QuickBooks.

Why is QuickBooks Online more suitable for most companies than QuickBooks Desktop?

1. The two versions are independent of each other, which means the data you enter on Desktop doesn’t sync to the Online version and vice-versa.
2. Security updates and product updates will still be released for all users who purchase a QuickBooks Desktop Plus or QuickBooks Desktop Payroll subscription before the cutoff date.
3. But there are some general guidelines to know which version might be the one for your business (and your budget).
4. QuickBooks Premier is best for small to medium business with five users or fewer that need strong accounting and industry-specific accounting features.
5. Know that your data is protected without downloading and installing product updates.

In terms of features, QuickBooks Enterprise is about as close as you can get to an ERP without making the switch to full-on business management software. In this complete QuickBooks Comparison, we’ll explain what each program is capable of, what type of business is best for each version of QuickBooks, and the main differences between each product. However, note that there’s no direct data migration option available from QuickBooks Solopreneur to any higher version of QuickBooks Online. This means you must first cancel your Solopreneur subscription and then sign up for the QuickBooks Online version you wish to upgrade to.

Choose QuickBooks Desktop If…

Contractors should also select Plus to track the profitability of individual projects. Other businesses should consider whether tracking P&L by class and location is worth the extra $34 per month. Meanwhile, Essentials gives you access to more than 40 reports, including those you can generate in Simple Start.

QuickBooks Plus is the first tier that includes inventory tracking and project profitability features. It also allows for five users and where do contra assets go on a balance sheet offers greater customization features for invoices and reports. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software.

QuickBooks Desktop Enterprise has the same great accounting capabilities as Pro and Premier but allows access for up to 40 users and much more storage space. QuickBooks Enterprise has highly developed features to meet the needs of nearly any large business. QuickBooks Enterprise also offers much better customer support than QuickBooks Pro or QuickBooks Online with its Priority Circle customer support. You can download a 30-day trial version of QuickBooks Desktop Enterprise only—both the Premier Plus and Pro Plus plans come with a 60-day money-back guarantee, but no free trial. Alternatively, you can sign up for a free 30-day trial with QuickBooks Online. Just know that doing so waives your option to get 50% off your QuickBooks Online subscription for your first three months.

Small Business Statistics for 2024

While these products will still be available to existing users, QuickBooks Desktop Payroll for Pro and Premier will no longer be available for new users to purchase starting on September 31, 2024. QuickBooks Desktop also has several additional features you won’t find with QBO, including sales orders and lead management. Because it is locally installed software, you also have more control over keeping your financial data secure. Both versions offer automatic syncing with your bank so you can categorize transactions.

The maximum amount of users you can have with a QuickBooks Online subscription is 25 (plus an accountant). If you need more users than that, you can contact QuickBooks Online’s customer support to see if you can create a custom plan with custom user access. Otherwise, you’ll need QuickBooks Desktop Enterprise, which supports up to 40 users.

When working with the Desktop version, it’s downloaded right to your computer. This means the data operates as fast as your computer, all without needing to worry about a connection issue. You must pay an additional fee for every user who wants to access the account simultaneously, whereas Online lets multiple users access the account at the same time. In addition to the strong accounting you’d expect with a QuickBooks desktop product, QuickBooks Enterprise provides invoicing, expense tracking, contact management, project management, job costing, and more. With strong accounting capabilities, impressive features, 750+ integrations, and fully-featured mobile apps, it’s no wonder QuickBooks Online is one of our top accounting recommendations.

QuickBooks Online vs. QuickBooks Desktop: Pricing

We deliver timely updates, interesting insights, and exclusive promos to your inbox. The Ascent is a Motley Fool service that rates and reviews essential united nations civil society participation products for your everyday money matters. QuickBooks Online and QuickBooks Desktop have very different pricing structures, with QuickBooks Online available by a monthly subscription, while QuickBooks Desktop has an annual cost. QuickBooks Desktop features are better developed than comparable features found on QuickBooks Online.

While both software types have plenty of perks, QuickBooks Online is a more flexible, affordable, and scalable option for most small-business owners. QuickBooks Desktop Premier Plus and Enterprise plans have industry-specific reports for manufacturing and wholesale, retail, nonprofit, general contractor and professional service businesses, too. For example, nonprofits can use the desktop products to run donor contribution summary reports while manufacturing, wholesale and retail businesses have the ability to forecast product sales. Contractors and professional service businesses can use the software to compare revenue by city, customer and job type. QuickBooks Online offers a large selection of reports, but they aren’t industry-specific.