Intuit QuickBooks offers powerful accounting features to help your small business, but companies often need to decide on whether they should use QuickBooks Desktop (QBDT) or QuickBooks Online (QBO). In this article, we will discuss the main reasons QuickBooks Online is usually the better choice for your small business.
Advantages of QuickBooks Online
A recent survey of QuickBooks Online users who switched from QuickBooks Desktop revealed that 84% would recommend the online product. This impressive approval rating from companies that have already gone through the migration process demonstrates that QBO is the preferred solution for most small businesses.
The main reasons small businesses should move from QBDT to QBO are detailed in the section below.
Accessibility and collaboration
QBO is a cloud-based solution, which makes it easy to access financial data from any device with an internet connection at any time. QBO users can also collaborate with their accountants and bookkeepers in real time. These features are a necessity in the age of remote workers and hybrid work environments. QBDT requires the purchase of an additional license for each device.
User-friendly interface and enhanced productivity
Most customers find QBO’s interface intuitive and easy to use, even if they are not accounting professionals. This ease of use allows more employees to have a better understanding of the company’s finances and to utilize this valuable knowledge in their tasks.
QBO users can also reduce manual data entry by linking business bank and credit card accounts. A linked mobile app allows users to send, track, and get invoices paid and to run reports through a mobile device. In addition, QBO provides automatic sales tax calculations, workflows, and payments reconciliation. These features will enhance the productivity of your employees.
Automatic security updates and backups
A key advantage of QBO is that there are automatic security and product updates, which keeps your data secure and the product updated without any action required from the user. In addition, QBO has robust backups to ensure your data is quickly retrievable in the event of a security breach or natural disaster. These automatic updates and backups will give your company the peace of mind that your company’s financial data will always be protected and accessible.
More effective systems integration and customer support
QBO can easily integrate with inventory management software solutions, CRM platforms, and payment tools. In addition, QBO has easily accessible, cost-free customer support, while some versions of QBDT charge extra for assistance.
Price and scalability
QBO costs less than QBDT and can be easily scaled up when additional users are required. In addition, businesses usually pay QBO monthly and can cancel anytime, while QBDT only offers annual subscriptions.
Easy migration process
QBDT users can quickly transfer their existing data over to QBO, and users will then simply input new financial data using QBO. Intuit also offers companies switching to QBO a free 1-hour personalized setup call to make sure your migration goes smoothly.
Situations Where QuickBooks Desktop Would Work Better
Although QBO is normally the preferred accounting solution for small businesses, there are some situations where QBDT would
work better.
Companies requiring advanced inventory management and industry-specific reports
Although QBO offers a high-level of inventory management and tracking, QBDT provides a more advanced level of industry-specific capabilities designed for manufacturers, retailers, and some wholesalers. Some of the features include automated order management, the ability to track raw materials and finished products, and barcode scanning.
QBDT also offers the ability to forecast product sales and run industry-specific reports that are useful for manufacturing and some retail and professional service businesses. Nonprofit organizations are also able to use QBDT to run donor contribution summary reports.
QBO has inventory tracking and the ability to generate a wide selection of reports, which are sufficient for most small businesses, but they do not offer the customized features described above.
Businesses with experienced bookkeepers
Some businesses employ an experienced bookkeeper who has expert financial knowledge and prefers a more traditional desktop accounting interface. These bookkeepers also have a comprehensive understanding of the operations and customized accounting needs of their organizations. In this situation, where the specific accounting requirements are more complicated, and the bookkeeper is comfortable managing local data, a desktop option may be preferable.
Work with an Experienced IT Partner to Make the Switch to QuickBooks Online
With some exceptions, QBO will provide more effective accounting solutions for your small business. To assess which accounting method will work best for your company and help you migrate to QBO, we recommend you work with an experienced IT Support partner like Network Depot. A dependable IT partner will be with you every step of the way as you make the switch to QBO from QBD, and they will always be prepared to help you maximize your accounting solutions.
With the assistance of an experienced IT partner, your small business will quickly reap the benefits of using QuickBooks Online and will stay focused on achieving your unique objectives.