What’s The Difference Between QuickBooks Online & Desktop?
QuickBooks Online and QuickBooks Desktop both have a lot going for them, but there are some key differences. Learn which QuickBooks accounting software fits the size, type, and needs (and budget) of your business.
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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 post, we’re exploring the differences between QuickBooks Online vs. Desktop 2021. We will compare each product’s features, pricing, user experience, customer support, reputation, and more so that you can confidently choose which software is better for your business.
| QuickBooks Online | QuickBooks Desktop | |
|---|---|---|
| Pricing | $25-$180/month | $349.99/year+ |
| Installation Method | Cloud-based | Locally-installed |
| Number Of Users | 1-25 | 1-3 |
| Key Features | 650+ integrations, easy to use, advanced invoicing | Strong accounting features, advanced reporting, 240+ integrations |
Table of Contents
- QuickBooks Online VS Desktop
- The Key Differences Between QuickBooks Online & QuickBooks Desktop
- Choose QuickBooks Online If…
- Chose QuickBooks Desktop If…
- QuickBooks Online VS Desktop: Pricing
- QuickBooks Online VS Desktop: Features
- Is QuickBooks Online Or QuickBooks Desktop Easier To Use?
- QuickBooks Online VS Desktop Reviews: Which Do Users Like Better?
- Comparing QuickBooks Online & Desktop: The Final Verdict
- QuickBooks Online & Desktop FAQs
QuickBooks Online VS Desktop
When you compare Intuit’s two most popular products, QuickBooks Online vs. Desktop, both have strong accounting features, but there is a key difference — QuickBooks Online is a cloud-based software with monthly pricing, and QuickBooks Desktop is locally-installed with an annual license pricing model.
QuickBooks Online Overview
You’ve probably heard of QuickBooks accounting software, but what is QuickBooks Online? QuickBooks Online, or QBO, is Intuit’s cloud-based accounting product. 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, and 650+ integrations.
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 mobile apps help you manage your business on the go.
Pros
- Cloud-based
- Easy to use
- Monthly pricing
- Strong features
- 650+ integrations
Cons
- Customer support
- More expensive than other SMB products
- Fewer features than Desktop
- No sales orders
QuickBooks Desktop Overview
QuickBooks Desktop is locally-installed software that is a top choice among business owners and accountants. There are 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 businesses, 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, more than 240 integrations, and positive customer reviews. It’s worth noting that QuickBooks Desktop is only available on Windows operating systems. Mac users will need to look at QuickBooks for Mac for a locally-installed Mac-based QuickBooks option.
Pros
- Strong features
- Traditional accounting
- Advanced reporting
- Potentially more secure
- 240+ integrations
Cons
- Windows-only
- Customer support
- Can be expensive
- Fewer automations than QBO
The Key Differences Between QuickBooks Online & QuickBooks Desktop
We’ve analyzed the main components of each software — features, pricing, ease of use, customer support, reviews and complaints, and integrations. Now let’s get into the key differences between QuickBooks Online and Desktop that every small business owner should consider.
Here are the seven main differences between QuickBooks Desktop vs. QuickBooks Online:
- QuickBooks Online Is Cloud-Based Software: The biggest difference between these two QuickBooks products is that QuickBooks Online is cloud-based and runs using the internet, while QuickBooks Desktop is downloaded and installed on a computer. That means that QuickBooks Desktop doesn’t require the internet to work, but it also means that you can’t access the software remotely (unless you pay extra for hosting).
- QuickBooks Online Has Built-In Security: Because QuickBooks Online is cloud-based, the security is taken care of for you by Intuit. On the other hand, QuickBooks Desktop is locally-installed, so while this program has the potential to be more secure, you are responsible for taking those security measures yourself.
- QuickBooks Desktop Requires An Annual Subscription: Another key difference is that QuickBooks Online has a monthly SaaS pricing structure, whereas QuickBooks Desktop has an annual subscription pricing structure.
- QuickBooks Online Supports More Users: QuickBooks Online allows up to 25 users depending on your pricing plan, and you can have an unlimited number of time-tracking only users. Adding another user to QuickBooks Desktop Pro will run you an additional $200/year per user, and the software caps out at three users max. QuickBooks Desktop Premier caps out at five users, and QuickBooks Desktop Enterprise caps out at 40 users (both require even steeper costs for additional users). All of these QuickBooks products offer strong user permissions.
- QuickBooks Desktop Has More Developed Features: While QuickBooks Online and Desktop have many of the same features, QuickBooks Desktop’s features are usually more developed.
- QuickBooks Online Has More Automations: QuickBooks Online has far more automations than QuickBooks Desktop, which allows business owners to manage their books more efficiently and quickly. And because QBO is cloud-based, all of your information (such as bank or credit card data) is synced in real-time.
- QuickBooks Desktop Is Harder To Use: Because of its feature set and focus on traditional accounting, QuickBooks Desktop has a much steeper learning curve than QBO (and the UI isn’t as modern or simple to navigate).
Choose QuickBooks Online If…
- You want software that is easy to use and learn
- You want to access your accounting remotely with mobile apps
- You want time-saving automations and integrations
- You want to use payment processing integrations for online invoice payments
- You need international invoicing
Chose QuickBooks Desktop If…
- You want locally-installed software accounting software
- You need the industry-specific features of QuickBooks Premier or QuickBooks Enterprise
- You need sales orders
- You have very complex accounting
QuickBooks Online VS Desktop: Pricing
| Price | Best For | |
|---|---|---|
| QuickBooks Online | $25+/month | Small to medium businesses with up to 25 users |
| QuickBooks Desktop Pro | $349.99+/year | Small to medium businesses with 1 to 3 users |
| QuickBooks Desktop Premier | $549.99+/year | Medium and niche industry businesses with 1 to 5 users |
| QuickBooks Desktop Enterprise | $1,655+/year | Medium to large businesses with up to 40 users |
QuickBooks Online and QuickBooks Pro have two different pricing structures.
QuickBooks Online has a monthly SaaS pricing structure. Four pricing plans are available, ranging from $25-$180/month (with an additional $45+/month for payroll).
QuickBooks Desktop has a yearly subscription pricing model. The prices for QuickBooks Desktop vary depending on which version of the software you opt for: QuickBooks Pro, QuickBooks Premier, or QuickBooks Enterprise.
QuickBooks Pro is geared toward small to medium businesses and starts at $349.99/year for a single user. QuickBooks Premier is suited for medium and niche industry businesses and starts at $549.99/year for a single user. QuickBooks Enterprise is designed for large businesses or small enterprises and starts at $1,655/year. You can add payroll, additional users, and cloud hosting for additional fees.
It’s hard to say which software is cheaper because there are so many variables. But there are some general guidelines to know which version might be the one for your business (and your budget).
- QuickBooks Desktop Pricing: If you have a single user and want locally-installed software with advanced features, QuickBooks Pro is likely the better option. However, the extra costs for QuickBooks Desktop add up quickly, particularly if you have more than one user.
- QuickBooks Online Pricing: If you have multiple users and use live bank feeds, 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 yearly subscriptions.
We recommend crunching the numbers to decide whether the online version or the desktop version of QuickBooks is right for your specific business.
QuickBooks Online VS Desktop: Features
| Feature | QuickBooks Online | QuickBooks Desktop |
|---|---|---|
| Invoicing | ✔ | ✔ |
| Estimates | ✔ | ✔ |
| Client Portal | ✔ | ✔ |
| Contact Management | ✔ | ✔ |
| Bank Reconciliation | ✔ | ✔ |
| Expense Tracking | ✔ | ✔ |
| Chart Of Accounts | ✔ | ✔ |
| Accounts Payable | ✔ | ✔ |
| Inventory | ✔ | ✔ |
| Time Tracking | ✔ | ✔ |
| Project Management | ✔ | ✔ |
| Budgeting | ✔ | ✔ |
| Tax Support | ✔ | ✔ |
| Built-In Lending | ✔ | ✔ |
| Reporting | ✔ | ✔ |
| *some features only available on select plans |
Both QuickBooks Online and QuickBooks Desktop offer a large number of features. While they share many of the same features, QuickBooks Desktop’s features are often more developed, except when it comes to invoicing. Even though QB Desktop has more comprehensive features in general, there are some key features that only QuickBooks Online has, such as international invoicing. So it really comes down to which features your business values most.
Here’s a breakdown of how each program’s specific features compare.
Invoicing
When it comes to invoicing, QuickBooks Online blows QuickBooks Desktop out of the water. QuickBooks Online makes it easy to create beautiful custom invoices. The designs are clean and modern, making it easy for customers to understand their invoices. Here’s an example of what a QBO invoice looks like:
QuickBooks Desktop’s invoices are cluttered, outdated, and much harder to customize. Here’s what an invoice made with QuickBooks Desktop looks like:
In addition to having better invoice template designs, QuickBooks Online also has better automations:
- Recurring invoices
- Batch invoicing and progress invoicing
- Sending invoice reminders to late-paying customers
- The ability to auto-schedule invoices
- A client portal where customers can make online payments
- Invoice tracking so that you can easily see if a client has received, viewed, or paid their invoice
- Having your invoices translated into six different languages for international customers
With QuickBooks Desktop, you can set recurring invoices, send payment reminders, send batch invoices, and track invoices, but you’ll miss out on many of the other modern, cloud-based automations that QBO provides.
Mobile Apps
One big drawback of QuickBooks Pro in the past was that it didn’t have mobile apps. Fortunately, with the introduction of QuickBooks Desktop 2022, a mobile app is now available. QuickBooks Online also has mobile apps for iOS and Android.
Is QuickBooks Online Or QuickBooks Desktop Easier To 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. Accountants often find QuickBooks Pro and Premier to be more traditional, but you don’t have to be an accountant or professional bookkeeper to learn QuickBooks Online. Granted, you don’t have to be an accountant to learn QuickBooks Desktop either, but if you are new to accounting, you will need a lot of time to learn the program.
QuickBooks Online VS Desktop Reviews: Which Do Users Like Better?
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. However, the majority of reviews are positive, with QuickBooks Online receiving 4.27/5 stars (based on 4,400+ reviews) on Software Advice and 4/5 stars (based on 2,600+ reviews) on G2. QuickBooks Online is praised for its mobility, ease of use, feature selection, time-saving automations, and integrations.
The most common complaints surrounding QuickBooks Pro include:
- Steep learning curve
- Expensive pricing
- Poor customer service
However, most users still view Quickbooks Desktop favorably, and the product receives high marks on most customer review sites. The software receives 4.3/5 (based on 1,300+ reviews) on Software Advice and 8.3/10 (based on 700+ reviews) on TrustRadius. QuickBooks Pro is praised for its strong accounting, ample features, reliability, and reporting.
Overall, QuickBooks Pro reviews are more favorable, but both user bases have good and bad things to say about each product.
Comparing QuickBooks Online & Desktop: The Final Verdict
Both QuickBooks Online and QuickBooks Desktop are capable programs with strong accounting features. Each software has its highs and lows.
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 automations, more integrations, and better invoicing. 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).
With QuickBooks Desktop, users receive some of the most developed accounting tools on the market. The software offers comprehensive features, unique touches (such as lead management and sales orders), industry-specific versions of the software, and the potential to be more secure. The downsides are that QuickBooks Desktop lacks the mobility of QBO, has few automations and limited payment gateways, and has a steep learning curve (although the software is well-organized and gets easier to navigate with time).
Ultimately, the real deciding factor is your specific business’s size, type, and needs. Whichever you choose, our comprehensive reviews can help you make an informed decision during your hunt for the perfect accounting software. Read our full QuickBooks Online Review and QuickBooks Pro Review for more details about each software.
QuickBooks Online & Desktop FAQs
Don’t see the answer to your question? Leave us a comment below, and we’ll be happy to help!
Erica Seppala
Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
View Erica Seppala's professional experience on LinkedIn.
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Looking into the Desktop versions how does multi user work? How can one user see what the other users are doing? Can you send invoices and receive online payments through QBDT? We have desk top computers and laptop will they all be able to be used with the correct product with that many users?
Hi Melinda,
According to QuickBooks, all users will be able to see the most up-to-date data when working in Multi-user mode, so it’s updating pretty much in real-time. Users would likely have to collaborate in whatever way they see fit to determine who is working on what, etc.
QuickBooks Desktop does support invoicing and online payments. It is also locally installed, allowing you to use one license for your own PC and laptop. If other users are going to be added, they will need their own licenses as well. Hope that helps!
I need quick books desktop offline package. May you Please advise
Hi Mike,
Our understanding is that QuickBooks Desktop is still locally installed (so technically offline), but if you’re looking for the one-time purchase, those are no longer available, unfortunately.
QB Desktop does have access to the QB Capital lending – so I would update the article accordingly.
This comment refers to an earlier version of this post and may be outdated.
Hi Raman,
Thanks so much for bringing this to our attention! We’ve just confirmed that yes, QuickBooks Capital can now be accessed through QuickBooks Desktop, and our editors are updating the content to reflect this. We appreciate the heads up!
Hi, I am starting a new business ( a one member LLC) and need a way to keep records, send invoices, and accept payments online. I’m not an accountant so am a little nervous about selecting the desktop pro but I also am reading many reviews that advise to stay away from QBO. If I’m a real small business but want a good record system which one makes more sense?
This comment refers to an earlier version of this post and may be outdated.
Hi Terry,
There are a number of factors to consider. If you don’t have previous accounting experience, QBO is going to be the better choice due to the steep learning curve of QuickBooks Desktop. QBO does check your boxes though, in that it offers payment processing integrations for online invoice payments, and even offers international invoicing, as well as over 80 reports depending on the plan you choose. If you still aren’t sure, you can always test out both with a free trial to see which you prefer, too. Hope that’s helpful!
This comment refers to an earlier version of this post and may be outdated.
About to start a commercial refrigeration company with an LLC. I will have many customers and suppliers which will require many transactions, and possibly 6 employees. Not sure which would be a better fit, QBO or QBD?
This comment refers to an earlier version of this post and may be outdated.
Hi Ashley,
There are a number of factors to consider. If you are going to have multiple users, QBO is definitely more cost-efficient. If you don’t have previous accounting experience, QBO is also going to be the better choice due to the steep learning curve of QuickBooks Desktop. QuickBooks Desktop does have a few advantages, though, like more advanced inventory and reporting and the ability to rebill job costs or calculate discounts by customer. If those features will be useful to you and you really want more advanced reporting, Desktop may be the better choice. But honestly, QuickBooks Online probably has everything you need. You can always test out both with a free trial to see which you prefer, too. Good luck!
This comment refers to an earlier version of this post and may be outdated.
STAY AWAY FROM QBO.
We’ve been trying to use QBO for a month now, “Graduating from QB DT”. It has been an unmittigated DISASTER. If you do not follow the predetermined workflows as QBO thinks you need to do, you will end up with HUGE pain. We have tried using invoices and revising said invoices — this cannot be done. We then tried project orientations and the product changed pricing such that we ended up with losses for every invoice (the costs for goods was greater than the retail price).
THEN we started losing invoices. So we asked for restores. Guess what? NO BACKUP INFORMATION AVAILABLE! On Friday we lost a whole MONTH of data.
We lived by the design of estimates -> invoices and guess what — you cannot get a report.
Tread carefully and print everything that you do
This comment refers to an earlier version of this post and may be outdated.
Hello,
I am trying to decide between QBO and QBPro, I own a few rental properties that are each under their own LLC and have separate bank accounts.
I would like to manage these as separate businesses. I don’t really need property management software, only the accounting piece.
Thanks for any input!
Ann-Marie
This comment refers to an earlier version of this post and may be outdated.
Hi Ann-Marie,
Based on the info you’ve shared, QuickBooks Desktop Pro would be the better option for you. QBO requires a separate subscription for each company, so these costs could add up quickly. Multiple companies are supported using QB Desktop Pro without having to have multiple licenses/subscriptions. So QB Pro is definitely the more cost-efficient option here. But QB Pro does have a steeper learning curve, so that’s also something to keep in mind.
This comment refers to an earlier version of this post and may be outdated.
Ann-Marie,
I have used both QBO and QB Desktop Pro. I have a bookkeeping business and a few of my clients use QB Online. The bottom line preference for me is definitely QB Desktop Pro. I don’t believe the writer of this article really made a good comparison on price, first of all. Remember this, in order for QB Online to come close to what QB Desktop pro can do, you have to subscribe to higher cost in QB Online. The $25/mo in QB Online is bare minimum and in your line of business, this is where it’s important. You can use what is called “Classes” in QB Desktop Pro, where you create a “class” for each of your properties. Name each class whatever you want. Then, just make sure that when you receive income or pay expenses, in addition to selecting an expense category, you select a class. Then you can create your P&L Reports by class and see each of your properties P&L’s on separate columns. You CAN’T do this in QB Online at the $25/mo. subscription. You have to upgrade to the next level, costing you at least $40/mo or more. QB Desktop Pro is NOT as difficult to learn as the writer leads you to believe. The program sets your company up by asking you simple series of questions . Then it creates your chart of accounts, etc.
What do I NOT like most about QB Online? Oh My! I don’t like the cumbersomeness of it, it’s not as user friendly as you might think. Integrations can wreak havoc on your books if you’re not careful, it has the occasional double entry of transactions when integrating with your online bank accounts, it automatically assumes that if you bought an office supply at Office Depot last month that future expenses will be in the same category, so it is important to watch for it, or you’ll find a number of your expenses mis-categorized.
Finally, if you want QB Online to offer the same or close to the same features as QB Desktop, you’ll have to upgrade to the next level or higher in QB Online, thus costing $40/mo or more. That’s $480.00 per year for QB Online vs. QB Desktop Pro at $399.00 license good for 3 years. Total costs after 3 years: QB Online = $1,440.00 QB Desktop Pro = $399.00 .
Nick
This comment refers to an earlier version of this post and may be outdated.
Thank you for such a thorough, honest answer.
This comment refers to an earlier version of this post and may be outdated.
You are spot on – it’s worse if you have more than one small business too – you have to have three separate QBO accounts – with the desktop, you can have as many as you want
This comment refers to an earlier version of this post and may be outdated.