QuickBooks Cloud VS Desktop: Which one to Choose?

QuickBooks is a premium accounting application that is widely used across multiple industries. Many businesses have used it traditionally for the past few years through on-premises desktops. But the growth of cloud hosting has paved the way for a new change in the accounting industry.

QuickBooks has expanded its offerings to include cloud-based and desktop versions, providing users with different options to meet their needs. QuickBooks Cloud refers to the online version of the software that is hosted on remote servers and accessed through a web browser.

On the other hand, QuickBooks Desktop is the traditional, locally installed software version that runs directly on a computer or server.

QuickBooks Cloud VS Desktop: Which one to Choose?

Instead of setting up their own in-house QB Desktop setup or on-premises IT infrastructure, many business owners now opt for a third-party QuickBooks cloud solution for its simplicity, flexibility, and cost-effectiveness to work with.

So, if you are looking to move to QB Cloud but are confused about how it fares against the traditional QB Desktop, here is a detailed analysis of QuickBooks cloud vs. desktop. It will broaden your understanding and help you choose the right solution for you:

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Here’s a brief rundown of important differences between Hosted QuickBooks vs Desktop Version:

FeatureQuickBooks CloudQuickBooks Desktop
AccessibilityAccessible from anywhere with internetLimited to the installed device
CollaborationSupports real-time collaborationCollaboration limited to local network
ScalabilityEasily scalable to accommodate growthLimited scalability without additional licenses
Cost StructureMonthly subscription-based pricingOne-time purchase with occasional upgrades
SecurityCloud provider handles data securityLocal machine security measures
MobilityIdeal for remote and mobile workTied to the physical location of the desktop
Automatic UpdatesAutomatically updated by the providerManual updates and upgrades required
Data BackupsAutomatic and managed by the providerUser responsible for data backup
User Access ManagementCloud-based user access controlLocal user access control
Integration with Add-onsSeamless integration with various appsCompatibility varies, may require desktop versions of add-ons
Installation and SetupQuick and easy setup, no installationsInstallation and setup required on each device
Technical SupportProvider-managed supportSupport provided by Intuit and community forums

Accessibility

Both QB Desktop and cloud vary significantly in terms of accessibility. While the former can only be accessed from the device it is installed in, the QuickBooks cloud can be accessed from anywhere, anytime, using any device with an internet connection and valid authorization. It allows you to access your QB data and work remotely freely.

Data security

Most organizations use conventional desktops with outdated security systems and lack the modern anti-hacking tools to secure your client’s financial data effectively.

However, with QB hosting, a reputed QuickBooks provider deploys high-quality security measures such as IDPS software, 256-bit bank-grade encryption, MFA, AI monitoring, antivirus software, malware scans, and other security measures.

User Collaboration

Collaborating using a traditional QB Desktop involves repeatedly exchanging the edited data files back and forth via email. This process is tedious and time-consuming, creating confusion with numerous copies of the same file.

QB cloud hosting has a centralized database and instantly reflects any changes. All you need is to share common access, and you can easily collaborate with others in real-time and work simultaneously.

Infrastructure scalability

You must plan considerably for QuickBooks Desktop and invest significant time and resources. QuickBooks Cloud has a flexible scaling-up option. All you need is to contact your QuickBooks cloud hosting provider, and they can rapidly provision additional computational resources within a few hours. If required, you can quickly scale down by once again contacting your provider.

IT maintenance

Having a QuickBooks Desktop infrastructure means bearing all the maintenance liabilities yourself, which ultimately requires you to allocate substantial resources for hiring IT professionals and procuring necessary components during each repair/replacement cycle.

However, with QuickBooks hosting, all the IT maintenance is provided by your cloud provider. They take care of the IT infrastructure while solely focusing on managing the end-point devices for accessing QuickBooks. This way, you can concentrate on your accounting tasks rather than addressing the IT infrastructure.

Disaster recovery

Since traditional desktops are maintained in-house, they carry a greater risk of permanent data loss due to various artificial and environmental disasters. A reputable QuickBooks provider backs up data on several data centers while setting up your QuickBooks Cloud solution.

Each data center is interconnected and placed strategically to minimize the impact. So, even if one of them gets destroyed, you can still access data without facing any losses.

Add-on integrations

QuickBooks is a powerful financial solution. However, it requires third-party integrations or add-ons to complete additional tasks. However, a QB Desktop can only support a limited number of add-ons and begins to slow down with different integrations.

A reliable QuickBooks hosting provider uses High-Performance Computing (HPC) servers for setting up your QB Cloud. This allows you to integrate as many add-ons as possible without experiencing system latency. Eventually, you can process large data sets in less time.

Cost-effectiveness

QB Desktop requires significant financial resources for procuring necessary components, hiring IT professionals, renting/buying an office space, and regular IT maintenance. However, you only need to pay a monthly subscription fee with QB Cloud.

You don’t have to invest in setting up the IT infrastructure and only manage the end-user devices. Also, as it is remotely accessible, you can shift to remote services and save on workplace-related costs.

Uptime availability

QuickBooks, whether on-premises desktop setup or cloud, is liable to face downtime. However, you can significantly reduce downtime with QB Cloud and work with greater uptime availability.

QuickBooks hosting providers have seasoned IT experts and deploy high-quality IT components to provide up to 99.99% SLA-backed uptime availability, something you will not find in an on-premises QB Desktop setup.

Tech support

It is necessary to have consistent support for mitigating IT issues within your organization. However, many business owners lack the resources to deploy round-the-clock IT support, leading to prolonged operational incapability during any disruption with QB Desktop.

However, a trustworthy QuickBooks provider offers round-the-clock IT support that can be easily contacted to fix your IT issues rapidly.

Also Read: QuickBooks Online Vs. Desktop: What’s The Difference? [2024]

FAQs – QuickBooks Cloud VS Desktop

What is the main difference between QuickBooks Cloud and QuickBooks Desktop?

QuickBooks Cloud is accessed through an internet browser or mobile app and is hosted on remote servers, providing remote accessibility and real-time collaboration. QuickBooks Desktop is locally installed on a computer and does not require an internet connection for access.

Can I access my QuickBooks Cloud data without an internet connection?

An internet connection is required to access QuickBooks Cloud since the software and data are stored on remote servers.

Are there any limitations on the number of users who can access QuickBooks Cloud simultaneously?

QuickBooks Cloud allows multiple users to access the software simultaneously, with specific user permissions and roles defined by the administrator.

Can I customize the interface and workflows in QuickBooks Cloud?

QuickBooks Cloud offers a standardized interface with limited customization options. While you may not have extensive control over the interface, you can configure settings and preferences within the available options.

Can I switch from QuickBooks Cloud to QuickBooks Desktop, or vice versa?

Yes, it is possible to switch between QuickBooks Cloud and QuickBooks Desktop. However, data migration and adjustments may be required when transitioning from one version to another.

Can I migrate my existing QuickBooks Desktop data to QuickBooks Cloud?

Yes, you can migrate your existing QuickBooks Desktop data to QuickBooks Cloud. The migration process usually involves exporting data from the desktop version and importing it into the cloud version. Specific instructions and tools are available from Intuit or your QuickBooks Cloud provider.

Conclusion

Looking at the points above, QuickBooks Cloud vs. Desktop seems to have an obvious winner. In short, the QuickBooks Cloud offers better collaboration and uptime with lower costs. It provides a better means for businesses to grow and experience a new way to complete accounting tasks.

The decision between QuickBooks Cloud and QuickBooks Desktop depends on accessibility requirements, mobility, customization needs, collaboration, data security, and industry-specific functionality. Assessing these factors, budget constraints, and future scalability will help businesses determine the most suitable choice for their accounting software needs.

Wish to know how QuickBooks Cloud can help your business? Get in touch with our solutions consultant at +1 855-270-6252.

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About Julie Watson

Julie is a dynamic professional with over 16 years of rich experience as a VDI and Application Hosting expert. At Ace Cloud Hosting, she humanizes disruptive and emerging remote working trends to help leaders discover new and better possibilities for digital transformation and innovation by using cloud solutions with an enterprise-class security approach. Beyond work, Julie is a passionate surfer.
On the weekend, you will find her hanging out with her family or surfing around the North Shore of Oahu.

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