Let’s face it: solid accounting is the backbone of a business and sticky notes don’t work. QuickBooks is a number-one-rated accounting system for small businesses. The software can organize sales by tracking expenses; organizing timesheets, sales slips and invoices; and maintaining tax information. Users can choose between QuickBooks Desktop or QuickBooks Online. Both have advantages which reflect the nature of the business.
5 Benefits of QuickBooks Online
- Automated customer billing
- Automated email reports
- Multiple users
- Activity log
- Simultaneous remote access to data
5 Benefits of QuickBooks Desktop
- Prepare 1099s
- Budget vs. accrual job costing
- Mileage tracking
- Advanced Excel exports
- Auto-calculators of statement charges
When to Use QuickBooks Online versus QuickBooks Desktop
QuickBooks Online’s primary advantage is the cloud feature. You can outsource an accountant or bookkeeper, and it is perfect for the business owner that is on the run. In addition, QuickBooks Online performs automated customer billing and email reports. The online version has the functionality of bookkeeping with the flexibility to step away from your computer and know that your customers are getting the information they need. The initial costs can be much lower. Users receive a free month-long trial before investing in the software. The low cost is perfect for startup companies. QuickBooks Online provides the basic features of an accountant. There are cost reporting advantages that are exclusive to the desktop version.
QuickBooks Desktop offers several customized features that have the online counterpart beat. The desktop software is vastly superior with inventory tracking, time tracking and budgeting. This allows you to find where you may have frivolous expenses that can easily be cut. QuickBooks Online is not designed to track or deliver detailed cost reports. The desktop version can be an investment. After you have budgeted and tracked your expenses, the desktop version can create customized Excel exports. Since QuickBooks Desktop is downloaded to your computer server, an Internet connection is unnecessary. QuickBooks Desktop provides the advantages of the online version’s recording with budget and mileage to make better decisions. Unfortunately, you cannot access your business finances from anywhere with an Internet connection as you can with the mobile version. QuickBooks Desktop is designed for stationary businesses.
Ultimately, when choosing between Quickbooks Online Vs. Desktop, it’s key to clearly review your business’s particular structure and needs to help you arrive at the best decision.