QBO vs QBD, which is better for me?

QuickBooks is a software produced to assist with the daily management of business procedures. If you are a business owner or self-employed, QuickBooks can help you get organized, make proper business decisions, and be prepared for events like filing taxes. The question is, which version of QuickBooks is right for you? QuickBooks Online (QBO) or QuickBooks Desktop (QBD).

Basic Things to Consider

  1. Cost is one important factor for many people. QBO has subscription-based pricing with 3 options. Each option offers a monthly rate ($20 to $150) or a yearly rate, with the yearly rate being slightly less expensive. QBD has a one-time cost of $300 for Pro Edition and a cost of around $1,000 for the Enterprise Edition. QBD users generally need to upgrade every 2 to 3 years.
  2. Access is another thing that should be considered. QBO allows access for up to 25 users at once. The cost for each user is normally around $7 to $13 per month, not including payroll features. QBD on the other hand must be installed on a computer. It can be used remotely but only by one user at a time.
  3. As far as Software Updates, QBO offers free updates included in the subscription, so the user is always using the most up to date version. QBD offers some updates for free during its 3-year product lifespan, but to get all the updates, the user must purchase a copy of the new software every year.
  4. Software support is a topic for consideration as well. QBO offers free unlimited support, while support for QBD is available during the initial 3-year period, but after that there is no support available.
  5. The final, and possibly most important piece to consider, is software integration. QBO does not integrate with QuickBooks Point of Sale, there are many apps available that can be used with QBO. On the other hand, QBD does integrate with QuickBooks Point of Sale, but there are not many available add-ons. Because QBD was primarily created for accounting functionality, add-ons are limited. QBO was purposely created as a cloud-based application with modern integration ability, therefore several certified 3rd party apps are available for use with QBO. Knowing which software and apps you would like to link to will help you in your decision.

Features only found on QuickBooks Online

The following features you can only use with QBO, if any of these are a must have, then QBO is the version for you.

  • Sales and Invoice Automation: QBO makes invoicing easy by giving you the ability to have invoices sent automatically, separately, or in batches to your customers.
  • Delayed customer billing and charges: This function allows customer invoices to be tracked and created when the time comes.
  • Activity Logs: These logs allow you to keep track of all changes made to business data, and who made the changes.
  • Automatic Email Reporting: QBO can be set up to automatically email financial reports to you on a daily, weekly, or monthly schedule.
  • Bank Transactions Automatically Downloaded: Automatically get information from your bank transactions downloaded for your convenience.
  • Location and Class Tracking: You can create your own classes to assign transactions. By doing this, you can track your account balance for any department. This allows you to better analyze your business in detail.

Features only found in QuickBooks Online

The following features you can only use with QBD, if any of these are a must have, then QBD is the version for you.

  • Inventory Assemblies: This allows you to track all the assembled goods that you keep in your inventory, produce, and sell.
  • Progress Invoicing: You can invoice by estimate at various stages instead of the full amount with progress invoicing.
  • Budget vs Actuals: This report allows you to compare the budgeted amount of your income and expenses to your actual income and expenses, helping you see how well you are performing.
  • Sales Orders: Sales orders can help you manage the sale of services or products that your customers order.
  • Statement Writer Services: This helps you create customized reports in excel worksheets and update the reports with live data to keep track of your business financials.
  • Item Receipts: This provides accurate information regarding existing inventory and payables. Also, you can track all items received even if you do not have a bill for them.
  • Class Specific Balance Sheets: This report calculates your businesses value by allocating each class.
  • Receiving partial Purchase Orders: This allows you to record any item received from a purchase order and edit your quantity to match what has been received.

Hopefully this information will help answer many of your questions you have regarding the difference between QBO and QBD. After considering the above-mentioned topics, I hope you feel a little more confident in choosing which version is best fit for you.

Arthur Harrison
Tax & Accounting

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Change Independent Contractors into Employees Trouble-Free

Independent contractors are a vital part of the American workforce. They work for themselves, usually providing services to other businesses. While this setup offers many advantages to both the contractor and the hiring business, it can also create tax problems.   You...

Is retirement the same thing it used to be?

The modern concept of retirement has only been around for about 100 years. Though relatively new, what retirement looks like and how people are planning for retirement has changed significantly in the last few decades. With roughly 9000 Americans reaching the average...

Cash in: Beat The Taxman With 11 Tax-free Income Breaks

No one likes paying taxes, but what if there were a way to reduce the taxes you owe each year? Luckily, several tax-free income breaks can help lower your tax bill. Here are 11 of the best ways to beat the taxman. Break 1: accumulation and withdrawals of tax-free...

I owe to the IRS, what do I do now?

We know owing taxes can be a headache, especially if you don’t have a CPA or tax advisor to walk you through the process. If you fail to pay your taxes, in most cases you will only face interest or penalties, rather than going to prison for tax evasion. Even if you do...

Credit, Debt and Personal Finances 101

In an era of credit cards, services that allow you to “buy now, pay later”, and access to loans at your fingertips, it is easy to indulge in lifestyle you can’t necessarily afford on your budget. Before your fall too deep down the rabbit hole – or if you may already...

Buying an Electric Vehicle? Know These Tax Law Changes

 Are you thinking of buying an electric vehicle or a plug-in hybrid and taking advantage of the Electric Vehicle Tax Law Changes? If so, you have much to consider—thanks to the newlyenacted Inflation Reduction Act and Electric Vehicle Tax Law Changes. Let’s get...

Dealing With The New 62.5 Cents Mileage Rate

Due to rising gas prices, the Internal Revenue Service (IRS) announced an increase in the standard mileage rate for business travel. As a result, small businesses that make use of the standard mile rates can deduct 62.5 cents per mile for business mileage.  This is...

FAQ on Student Loan Cancellation

What is the Student Loan Cancellation? Last month, President Biden laid out a plan to cancel up to $20,000 in federal student loan debt per borrower. Beneath this seemingly simple plan comes quite a few questions about how, exactly, it will work. Naturally, borrowers...

Need to Change from 1099 to W2? Read More About This Safe Harbor Relief

IRS declared independent contractors as employees: Can Section 530 help?  Are you going through an IRS audit? Though we know that is bad but what happens if the IRS declares that many of your 1099 independent contractors are W-2 employees, now what?    Safe-harbor...

The IRS is Watching Cryptocurrency Closely

The IRS wants to know of any bitcoins or other cryptocurrencies you have. It will appear at the top of the first page of your Form 1040, below your address and name. The IRS wants to monitor crypto purchases and sales starting this year.   Anyone filing a tax return...

Request an Appointment Today

6 + 15 =

Call us at

Pin It on Pinterest

Share This