QuickBooks License: What You Need to Know Before You Buy?

QuickBooks is an accounting software that has proven to be a perfect choice for multiple businesses, from small bookkeeping firms to large enterprises. Selecting the proper QuickBooks license makes a significant difference in how efficiently you manage your accounting operations.

You must select the correct QuickBooks license for your company by selecting from a Desktop or Online version, each designed to meet different business requirements.

It is crucial to understand which QuickBooks version fulfills your business’s future needs by providing you with the accounting features you require to optimize your business operations. Each type of QuickBooks license delivers specific features to suit varying business sizes.

To help you decide which QuickBooks version or license is ideal for your business, we have compiled questions you must ask yourself while providing an unbiased comparison.

Question #1: Which Version Suits Your Business Size and Industry?

It is well known that every business and industry has its mode of operation. Considering that QuickBooks Desktop and QuickBooks Online, both provide options for different business sizes while serving slightly different industries.

QuickBooks Desktop offers the Enterprise edition, its most known pricing plan to cater to medium to large-sized businesses requiring industry-specific tools.

If you are a small business:

QuickBooks Pro Plus 2024 in the Desktop license that comes as a subscription model is a perfect fit for you with all primary accounting capabilities such as invoicing, basic reporting, and expense tracking. Its one-time license option is discontinued; you’ll have to opt for a monthly or annual subscription-based model.

QuickBooks Online Simple Start or Essentials might be suitable if features such as remote access are a priority for you. It offers basic accounting features with the convenience of cloud access from any device.

If you are operating a medium to large-scale business:

If you manage a medium-sized or growing business, or if your business operates in a specific industry such as construction, retail, or nonprofit, QuickBooks Enterprise is a best-suited version of desktop editions with specific features such as sales order fulfillment and price level lists, donor tracking, and managed fund accounting.

For larger businesses that need collaboration but still have moderate financial complexity, QuickBooks Online Plus or Advanced can be a viable alternative with cloud access, integrated apps, and flexibility for larger teams.

A Simpler Answer: For small businesses with basic needs, QuickBooks Pro or QuickBooks Online Essentials works well. Medium to large companies with industry-specific needs should lean towards QuickBooks Premier or Enterprise for Desktop, while cloud-based businesses may benefit from QuickBooks Online Plus or Advanced.

Question #2: How many users will require access to QuickBooks?

Before making a choice, you must understand the number of users who need access to QuickBooks. It will guide you to decide what version suits you as every version supports different user limits.

• QuickBooks Enterprise: Supports up to 40 users, offering the highest user capacity among Desktop versions with advanced user permissions.
• QuickBooks Online: Simple Start supports a single user, Essentials supports up to 3 users, Plus supports up to 5 users, and Advanced supports 25+ users and includes advanced user management features.

A Simpler Answer: If your business needs support for more users and highly detailed user permissions, QuickBooks Enterprise (Desktop) is the best option. However, if your business prioritizes cloud access and moderate user collaboration, QuickBooks Online Advanced can accommodate up to 25 users.

Question #3: What’s the complexity of your accounting operations?

Now, the next question that arises is what kind of accounting operations you have. Both the versions, QuickBooks Desktop and Online cater to different levels of accounting complexity, with certain versions being better suited to more complex operations.

If you have simple accounting needs:

If you have simple accounting tasks like tracking income and expenses or managing accounts receivable/payable, QuickBooks Pro in Desktop or QuickBooks Online Essentials may be sufficient.

If you have advanced accounting needs:

QuickBooks Premier or Enterprise in Desktop versions are particularly suited to provide advanced features such as job costing, batch invoicing, robust inventory management, and customizable reports for different industries requiring more detailed accounting, such as construction, manufacturing, or retail.

QuickBooks Online Plus or Advanced also offers sophisticated features for growing businesses, including advanced reporting, budgeting, and inventory tracking. However, it may not be able to provide the same level of personalization and complex features as the Desktop versions do.

A Simpler Answer: QuickBooks Online Essentials or QuickBooks Pro from the Desktop version may suffice for businesses with basic accounting needs. On the other hand, if a business needs advanced capabilities such as job costing and serial tracking, then QuickBooks Enterprise is the most suitable choice with better performance.

Question #4: What is your budget?

Before deciding on any other factor, you need to see which of the versions fits your budget. The QuickBooks Desktop and Online licenses come in different pricing models. Note that the QuickBooks Pro Plus and QuickBooks Premier Plus support has been discontinued from Intuit’s end and, now you can only go for a subscription model.

QuickBooks Desktop (Enterprise):

The QuickBooks Enterprise starts at $1922/yr for an annual subscription, with costs rising based on user count.

QuickBooks Online:

It has three plans: Simple Start starts at $25/month, Essentials starts at $50/month, Plus starts at $80/month and Advanced pricing starts at $180/month. Although Online Advanced is more affordable than Enterprise, it does not include all of Enterprise’s powerful features like advanced inventory management or handling larger data files.

A Simpler Answer: For businesses that prefer more control over long-term costs, QuickBooks Desktop offers more flexibility. On the other hand, QuickBooks Online requires an ongoing subscription but includes automatic updates and cloud access.

Question #5: Which license will fit if you have cloud hosting requirements?

Though both can be hosted on the cloud, you must consider both to be sure.

QuickBooks Desktop:

By default, QuickBooks Desktop does not offer cloud access, but it can be hosted on third-party servers through QuickBooks Hosting. Leveraging the power of the cloud allows you to access the full features of the Desktop version from any location while adding the flexibility of remote access, real-time collaboration, and secure daily backups.

Hosted solutions come at an additional cost but provide the same features as QuickBooks Desktop without losing the ability to work from different locations.

QuickBooks Online:

It offers built-in cloud functionality, meaning your data is accessible from anywhere on any device with an internet connection. QuickBooks Online also enables real-time collaboration among users, which is particularly useful for teams working remotely.

A Simpler Answer: If you need the advanced features of QuickBooks Desktop while using the power of the cloud, QuickBooks Hosting can be the one by offering a hybrid solution that combines Desktop power with cloud flexibility.

However, if cloud access and remote work are essential to your business and you are familiar with the interface, QuickBooks Online can be your go-to option.

Question #6: Do I require advanced customization and control?

When it comes to control, you need to ensure that the permissions and customization you require in your QuickBooks environment.

If you have advanced control

For instance, if you need advanced user permissions at a granular level, then Quickbooks Enterprise will be a suitable option as it offers deep report customization with user permissions on an individual level.

Herein, QuickBooks Desktop allows for more detailed report tailoring, giving you the flexibility to generate highly specific insights. Additionally, Desktop versions offer advanced user permission settings, which allow you to grant or restrict access to specific features and data based on the user’s role.

If you are fine with a lower level of control and personalization

QuickBooks Online’s lower-tier plans offer fewer customization options for reports and user permissions. However, Online Advanced brings more control than lower-tier online versions and still doesn’t match the level of customization provided by the Desktop versions.

A simpler answer: QuickBooks Desktop Enterprise offers detailed customization for reports and advanced user permissions, making it ideal for businesses that need full control. On the other hand, QuickBooks Online offers basic customization but lacks the depth found in Desktop. If you need in-depth customization, go for Desktop Enterprise.

Question #7: What level of inventory management do you need?

Inventory management is one of the most popular features of QuickBooks and is the core reason businesses need the software. Every QuickBooks license gives you inventory management but at various levels. If you require advanced inventory management tools such as barcode scanning, lot tracking, and bin location tracking, QuickBooks Enterprise is the clear winner.

QuickBooks Online won’t provide these features apart from some basic inventory tools in QuickBooks Online Plus and Advanced. If you need precise inventory control across multiple warehouses or want to track products in detail, Desktop versions, particularly Enterprise, offer the best functionality.

A simpler answer: For advanced inventory management, QuickBooks Enterprise is ideal, while for simple payroll integration, QuickBooks Online or Desktop both work well.

Question #8: How important is data security and control?

Data is the king. When on-premise, QuickBooks Desktop keeps your confidential data secure. If data security and control are your top priorities, QuickBooks Desktop gives you more flexibility.

With Desktop versions, your data is stored locally, giving you complete control over your backups and security protocols. You can also choose to host your data on a private server using a third-party hosting provider, ensuring your financial data is safeguarded to your standards.

In contrast, QuickBooks Online stores data on Intuit’s cloud servers. While this offers automatic backups and secure storage, some businesses prefer the control of managing their data security.
A simpler answer: If you need to comply with specific data security regulations, QuickBooks Desktop may offer more control to meet those needs.

Question #9: How frequently will you need software updates?

If you require regular updates and access to the latest features, QuickBooks Online may be a better fit. Since Online is built cloud-based, it automatically installs updates with new enhancements when released by Intuit. It ensures that you are always working with the most current version without manually installing updates or purchasing new software versions.

On the other hand, QuickBooks Desktop only updates with the subscription model or when you purchase the latest version.

Businesses that are comfortable using the same software version for several years may find Desktop’s one-time purchase model more cost-effective, but if you want to stay on the cutting edge, Online has the advantage.

Question #11: Do you need integrations with other business tools?

If your business relies on seamless integration with other cloud-based tools—such as CRM systems, e-commerce platforms, or project management software—QuickBooks Online and QuickBooks Enterprise both have much to offer.

The cloud-based nature of QuickBooks Online allows it to integrate easily with a wide variety of third-party applications, making it an ideal choice for businesses that use multiple software tools and need them to work together smoothly.

QuickBooks Desktop also integrates with other tools, and when you host it on the cloud, you can get around 200 add-ons and another additional setup.

The simpler answer: If integrations are a key part of your workflow, QuickBooks Online is likely to provide better compatibility and easier setup for connecting to other business applications.

Conclusion

When deciding between QuickBooks Desktop and QuickBooks Online, consider your business’s specific needs. QuickBooks Desktop offers more control, advanced features, and scalability, making it a better choice for businesses with complex accounting requirements.

Meanwhile, QuickBooks Online provides flexibility, accessibility, and ease of collaboration, making it ideal for businesses prioritizing remote work and convenience.

By evaluating factors like business size, accounting complexity, number of users, and budget, you can make an informed decision that maximizes the efficiency of your financial operations.