Quickbooks Online vs Desktop: Which Is Best in 2024?

Similarly, FreshBooks ranges from $17 to $55 per month, with time tracking in all plans. QuickBooks Online aced our evaluation of general features because it offers everything you need to set up your company file and get started. You can enter your basic information like company name and contact details, set up additional users and customize user access, and import your chart of accounts from your existing software if needed. QuickBooks Online also allows you to close books at year-end, which is important to prevent changes in your financial data.

1. These can be useful for companies with more complex business structures and accounting workflows.
2. During the setup process, you can choose the features and functions that you will likely be using in QuickBooks Online.
3. QuickBooks Online Self-Employed works very well for people who work for themselves in a service industry and report their business income on Schedule C of their personal income tax return.
4. 61% of freelancers today say their biggest problem is landing clients, so streamlining their process can clear room in their schedule to pursue their next gig.
5. For this section, we considered customer service, support network, and a subjective expert opinion score.
6. QuickBooks Online goes to $30 per month after that and is easily our most expensive option.

Learn how our Live Bookkeepers are helping small businesses get more done. Team up with your very own QuickBooks-certified bookkeeper who understands your industry and gets to know your business. To help you better understand how to use QuickBooks Online’s features, you may check out our free QuickBooks Online https://intuit-payroll.org/ tutorials. One of its advantages over similar software is that you can e-file your taxes either through email or your agency’s website. If you’re working with independent contractors, QuickBooks Online lets you generate 1099 tax forms and either file them online or print and then mail them to the IRS.

QuickBooks Online dominates the market for small business accounting software due to its extensive features and flexibility in meeting the needs of nearly any small business. It can track inventory costs, generate invoices, track unpaid bills, and calculate P&L separated by many factors, including user-defined classes and locations. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. Small businesses that are growing may want to use QuickBooks Essentials.

How do I get QuickBooks Online for free?

Simple Start runs basic reports, including cash flow statements, profit and loss (P&L) statements, and balance sheets. Some of the other 20-plus built-in standard reports available include P&L by month and customer, quarterly P&L summaries, and general ledger. Our internal case study compares the four QuickBooks Online plans for small businesses across major accounting categories and functions to help you decide which one fits your needs.

What QuickBooks Desktop offers

This is a tie since both QuickBooks Online and QuickBooks Desktop offer users the same support options. Whether you’re thinking about converting to QuickBooks Online or switching from QuickBooks Desktop to QuickBooks Online, your first step should be to take a long look at both applications. When you do, you’ll notice the difference immediately as QuickBooks Online offers a streamlined user interface, while QuickBooks Desktop relies on a flow-chart based interface. While both provide easy access to a variety of features and functions, only you can decide which one will work best for you. Accurate Books Guarantee is only available for active customers of QuickBooks Live Monthly Bookkeeping who have provided their current business tax return.

QuickBooks is the platform most used by professional accountants so if you plan to work with an accountant, they will likely be very familiar with the platform, its features and capabilities. Once your business is large enough to require more automation and more employees, the Plus Plan likely makes sense, as it allows for recurring payments in addition to time tracking. It also includes inventory tracking, making it a must for an operation that sells more than a few products. Due in part to these reasons, QuickBooks is our pick for the best hospitality accounting software. For $27.50 per month for the first three months, then $55 per month after that, get up to three users, manage and pay bills and track time with its Essentials plan, which is its most popular plan.

If you don’t need accounting just yet, our new money solution offers banking, payments, and 5.00% APY—all with no subscription or starting fees. You do not have to have a QuickBooks Online accounting software subscription to use QuickBooks Payroll. However, many business owners find it easier and more convenient to have their accounting and payroll data all in one place. When you’re ready to set up and run payroll in QuickBooks Online, you can sign up directly through the QuickBooks Online dashboard and select your subscription plan directly from there. After you answer a few basic questions, you can then start adding your employees.

These hours can be added by the manager manually, though the employee in question can also be given permission to add their hours themselves. 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. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most.

All Simple Start features for up to three users, plus bill management and the ability to add employee time to invoices. In order to accurately compare top accounting software, the Tech.co research team picked out the eight core categories to divide their efforts along, from help and support to accounts payable tools. Your bookkeeper brings your past financials up-to-date and sets up your bank connections and chart of accounts. The most notable difference, aside from price, between QuickBooks Online and QuickBooks Desktop is the Online version is cloud-based.

Secure cloud storage

In addition, the Premier and Enterprise plans offer more than 150 reports, with industry-specific reporting options available. QuickBooks Online’s solid set of features (invoicing, inventory management, reporting, etc.) makes it a great solution for a variety of small businesses. It’s easy to loop in your accountant and, unlike some competitors, it can scale to meet a growing business’s changing needs. QuickBooks offers plenty of customer support options, including phone, email, live chat, and chatbot.

QuickBooks’ recent revamping of its payroll platform is a testament to that commitment to stay responsive and on-trend. The cost begins at $17.99 and varies depending on which form you need and how many. If you purchase QuickBooks Online payroll, these forms may be included, depending on your chosen payroll plan.

We evaluated QuickBooks Online’s sales and income tax features across the other categories, so there’s no separate video. Intuit reports that 94% of accounting professionals feel QuickBooks Online saves them time and thus saves their clients’ money. The best QuickBooks Online plan for you depends on the size of your business and your particular needs.

This serves as the foundation for all content, demonstrating a clear dedication to providing valuable and reliable information. Our team leverages its expertise and extensive research capabilities to identify and address the specific questions our audience has—and this ensures that our content is rooted in knowledge and accuracy. Click on the cogwheel on your company non operating expenses dashboard and select Spreadsheet Sync under TOOLS. Next, activate the Spreadsheet Sync add-on by clicking Let’s Go in the pop-up window. Follow the screen prompts, and you’ll be able to install Spreadsheet Sync and sign in using your login details. Batch expensing allows you to record and categorize multiple expenses at once instead of entering them individually.

Comparison of QuickBooks Online Products

We even consider it the best for tracking freelance income and preparing tax returns in our guide to the best accounting software for freelancers. To see what it can do for freelancers and solopreneurs, check out our QuickBooks Online Self-Employed review. To delve deeper into our best small business accounting software, we tested and used each platform to evaluate how the features perform against our metrics.

Both versions have mobile apps, but the app for the Desktop version primarily functions as a way to upload receipts, and the Online mobile app is robust in comparison. Simple Start is a good starting point for most small businesses, especially those that don’t need to enter bills, track billable hours, and manage projects and inventory. It includes payroll processing, which allows you to calculate and track payroll taxes, and it lets you track assets and liabilities and use automated sales tax on invoices. Additionally, it enables you to record and track payments made to 1099 contractors.

Previously I could only access our bookkeeping records by physically going into our office. I use QuickBooks on a daily basis for invoicing clients, bank reconciliation as well as looking at the various reports. I have customised the reports to show the time period and categories that are useful for our business. All plans come with a free 1-to-1 session with a member of our onboarding team, who can help guide you through setting up QuickBooks for your business. There are no contracts, and you can also add additional features, such as health benefits, 401(k), and workers’ compensation. There are additional add-ons, such as health benefits, 401(k) plans, and college savings plans, that you can sign up for as well.

If your monthly average is $0-10,000 per month, the monthly price for QuickBooks Live is $300. If you invoke the guarantee, QuickBooks will conduct an evaluation of the Live Bookkeeper’s work. QuickBooks Online is very user-friendly, but you need to know the basics. Check out our series of free QuickBooks Online tutorials to get started. Some of the top alternatives to QuickBooks Online are Zoho Books, Xero, FreshBooks, Wave, and Sage 50.