Which Version is Best for Your Business?
QuickBooks Online
QBO (Quickbooks Online) is a cloud based accounting system designed for multiple platform users. You need to have access to the internet.
Version specific features: Multi user access, tracking of: inventory, purchase orders, accounts payable, accounts receivable, estimates, class/departments, 1099s, sales tax, invoices and number of canned reports (not industry specific).
All version features: allow you to connect payroll either do it yourself or done for you right inside the software. You can also connect QB Payments to allow you to collect payments via email, over the phone or out in the field.
Limitations: QBO only has 4 different levels of user access, you cannot track sales orders, you cannot track job costing, it cannot do multiple company reporting, it does not offer industry specific canned reporting, it’s not really recommended for inventory, you cannot track partial purchase orders, it does not offer assemblies, serial number tracking, lot/bin tracking, price levels, and the list limits are 10,000. It is totally dependant on internet so if you are in a rural area, that is a major consideration. You have to have one subscription for each QuickBooks Data file.
QuickBooks Desktop
QBDT (QuickBooks Desktop) is a feature rich accounting system designed for the desktop. The software can be installed on your PC/Server or MAC or hosted in the cloud.
Version specific features: Multi user access, levels of user access 8-hundreds (customizable), industry specific canned reports, tracking of: sales orders, inventory assemblies, serial numbers, lot/bin, price levels, multiple company reporting, advanced reporting and list limits (14,500-1,000,000).
All version features: allow you to connect payroll either do it yourself or done for you right inside the software. You can also connect QB Payments to allow you to collect payments via email, over the phone or out in the field. Also multi user access, tracking of: inventory, purchase orders, accounts payable, accounts receivable, estimates, class/departments, 1099s, sales tax, invoices and have canned reports (not industry specific). You can have unlimited company files to open with QBDT.
Limitations: QBDT is accessed locally from a PC, hosted environment or remote access software allowing you to use multiple platforms. You have to setup your own data backup system. You will need access to the internet in order to update the software with the latest release.
What You Need to Know Before You Transition
QBO is a completely different product from QBDT, the QuickBooks product that so many customers have become accustomed. It is a distillation of basic functions common to all small businesses; as such, in order to make it feature rich you will need to add third party apps, each of which will require an additional monthly subscription.
Customers that are already using QuickBooks Desktop Edition (QBDT) can be transferred to QBO, however, some relatively basic, standard business processes either do not transition well or are not supported at this time; payroll will not transfer smoothly QBO, you cannot track job costing for payroll, you need to make sure you inventory is cleaned up, sales tax groups do not transfer and are lumped together. If your file is huge you may need to do a period copy. Expect to do some cleanup.
When to Choose QBDT Over QBO
Depending on your business, your needs will be different. Here are a few of the featured offered in QBDT that are not in QBO.
- If you need to track job costing, this is done very well in QBDT, you can track it in payroll, and the entire workflow.
- If you want to create a sales order, this cannot be done in QBO.
- If you need inventory tracking, this is done very well in QBDT, you can track purchases through PO’s, bills, and Sales through Estimate, Sales orders, invoices as well as inventory reporting.
- What if my customer wants to have remote access and they need QuickBooks Desktop Version? You can solve this with hosting. There are many options available and we can recommend on if you need assistance with setting up your hosting account.
You can run multiple company files using the desktop version but for QBO it requires an additional subscription. As you examine the more robust versions of QBDT, even more useful features abound: both Premier and Enterprise provide sales order, canned reports for industries and light manufacturing inventory tracking, while Enterprise includes advanced reporting. QBDT is recommended for full job costing as you will be able to include payroll costs as part of your job costs. These functions cannot be performed in QBO at this time. In order to have the same features in QBO you have to add more integrated apps which have a monthly fee.
Have questions? Schedule a free demo from our team.