I often am asked the question “Which QuickBooks version do you recommend I use for my business?” My response is that I need to know more about the specific situation in order to answer. Today I’m going to give some pros and cons of each so that you can determine which version is right for you.
QuickBooks Online Pros:
- The software can be accessed from anywhere as long as you have an internet connection
- Your files update automatically as they are released
- You can give your CPA access to your file to access the information anytime
- It’s a lower up-front cost for the software
- Bank and credit card transactions can be set up to auto-import daily
QuickBooks Online Cons:
- I have experienced times when the program is not accessible (internet issues or perhaps software glitches)
- No control of when updates occur leading to learning curves that may happen at inopportune times
- Reporting capabilities are not as robust as the desktop version
- Monthly fees make it more expensive long term
- Some features are charged an additional fee to use (1099 processing, class tracking)
- Transactions may be assigned to incorrect accounts when imported
- Some have concerns about data security
Desktop Pros:
- One-time cost for software purchase
- Can use the program for many years without having to upgrade
- Doesn’t require an internet connection to use
- Can have multiple company files using the same license (no per-company fee)
- No additional cost for 1099 processing or class tracking capabilities
Desktop Cons:
- Some banks don’t have QuickBooks import capability for bank and/or credit card transactions
- You must upgrade every two years to use certain functions within QuickBooks (payroll processing, credit card payments, or e-mailing invoices)
- A backup or accountant’s copy must be given to the CPA for them to have access (unless they have remote access set up to your computer)
- Information can be overwritten by accident (or lost) if backup files are not restored properly
- QuickBooks information can be lost if backup files were not created and the computer crashes
As you can see, there are many considerations when determining the best version of software to use, and no answer is right for everyone. If you are unsure which option is the best fit for you, contact our office today and we’ll help you make the determination. 310-534-5577 or [email protected].
