Accounting clients, both individuals and businesses, are excited about the cloud. Some have already switched, while most are still considering their options. With its QuickBooks Desktop software, Intuit has been a leader in delivering accounting solutions.
Intuit came up with a solution as the cloud entered the arena – QuickBooks Online (QBO), the company’s very own cloud-based accounting solutions for businesses. Since its launch, the software has been gaining popularity.
QuickBooks Online is on the rise but is not the only choice if you want to work on the cloud with Intuit’s solutions. Hosting QuickBooks Desktop on the cloud is another option, and along with some challenges, it has its share of advantages over QBO.
What Makes QuickBooks Desktop Hosting a Smart Choice Over QuickBooks Online
Robust Accounting Features
QBO is not a cloud version of the QuickBooks Desktop application. It is completely independent accounting software, which significantly lacks features compared to the desktop version, such as a large set of inventories, lead management, sales orders, etc.
On the other hand, network-dependent features (like – anytime, anywhere access, multi-user collaboration, cross-device compatibility, etc.) that the desktop version lacks because of its dependency on the local machine are eliminated by going for hosting.
So, hosting QuickBooks desktop on the cloud brings all its features with the power of the cloud. You can get a detailed feature comparison between the various QuickBooks versions.
Cloud Accessibility
Hosting QuickBooks Desktop provides the accessibility benefits of QuickBooks Online. With cloud hosting, you can access your QuickBooks Desktop software from any device, anywhere, anytime. This is particularly valuable for businesses with remote teams or owners who need to access financial data on the go.
Unlike QuickBooks Online, which is limited in functionality, QuickBooks Desktop hosting offers complete access to all the features of the desktop version, along with cloud mobility.
Better Performance and Speed
QuickBooks Desktop is built to handle large datasets, making it ideal for businesses with more complex financial needs. Hosting QBD in the cloud ensures your software runs on high-performance servers, providing better speed and performance than local installations. This is particularly beneficial for companies handling large volumes of transactions or needing high-level reporting.
On the other hand, QBO is designed for more straightforward accounting tasks and may struggle with larger datasets, leading to slower performance.
Accustomed UI
QuickBooks desktop has been serving accounting professionals who are familiar with it for decades. QBO, being a different application, offers several changes, and not everyone finds this change in the user interface impressive.
Again, QuickBooks hosting maintains the consistency of the UI, and the users who are accustomed to it will find the cloud equally convenient without asking for any training.
Efficient Support
Support is one of the critical deciders when choosing technical solutions, especially when it holds responsibilities for finance operations. One requires continuous services and instant solutions when a problem arises. QBO can struggle to serve instantly during peak hours because of its large customer base.
On the other hand, support for hosting QuickBooks will depend on the provider. Most service providers can deliver instant support, which may or may not be accessible. So, it might cost a little, but services will remain on the right track.
Enhanced Security
Data security is a top concern for any business. Hosting QuickBooks Desktop with a reliable hosting provider ensures top-notch security measures. Most cloud hosting providers offer features like encrypted data transfers, regular backups, multi-factor authentication, and high-level firewalls. Knowing that your financial data is secure and protected against potential threats provides peace of mind.
While QBO also offers data security, the additional security protocols in hosted QuickBooks Desktop environments can often surpass those of QBO, particularly for larger businesses with sensitive financial information.
Control and Customization
QuickBooks Desktop offers far more control and customization than QuickBooks Online. From custom reports to advanced settings, QBD allows users to tailor the software to their needs. Hosting QuickBooks Desktop preserves this flexibility while adding the benefits of remote access and collaboration.
QBO’s customization options are more limited, making QuickBooks Desktop hosting the better choice for businesses with specialized requirements.
Cost-Effectiveness for Larger Businesses
While QBO has a subscription-based pricing model that works well for smaller businesses, larger companies often find hosting QuickBooks Desktop more cost-effective in the long run. This is especially true when factoring in the desktop version’s additional features, storage capacity, and performance benefits. Hosting eliminates the need for expensive on-premises infrastructure, offering a scalable solution that grows with your business.
Accounting Features Comparison: QuickBooks Desktop vs QuickBooks Online
| Feature | QuickBooks Desktop (QBD) | QuickBooks Online (QBO) |
|---|---|---|
| Cloud Accessibility | Available with cloud hosting | Fully cloud-based |
| Multi-User Collaboration | Yes (with hosting), advanced features in Enterprise | Yes, but limited real-time collaboration |
| Advanced Reporting | Highly customizable and advanced reporting capabilities | Basic reporting customization options are limited |
| Industry-Specific Versions | Available (e.g., Manufacturing, Construction, Non-profit) | Not available |
| Inventory Management | Advanced, with lot tracking, serial numbers, and assemblies | Basic inventory management, suitable for smaller needs |
| Job Costing & Project Management | Detailed tracking, better suited for complex projects | Basic tracking with limited project management features |
| Payroll Features | Full payroll processing with desktop integration | Payroll is available, but more straightforward functionality |
| Third-Party Integrations | Fewer integration options, but they are available | Extensive integration with a wide range of apps |
| Automation | Limited automation (e.g., recurring invoices) | More automation features (bank feeds, invoicing) |
| Data File Size Capacity | Handles large data files and complex transactions | Struggles with large datasets, slower performance |
| Security | Enhanced security with hosting (encryption, backups) | Secure, but less robust than hosted QBD |
| Cost Structure | One-time purchase or annual subscription (with add-ons) | Monthly/annual subscription-based pricing |
| Scalability | Scalable with advanced features in the Enterprise version | Scalable to an extent, but more suitable for small to mid-size businesses |
| Custom Reports & Forms | Extensive customization options | Limited customization |
| Support for Multiple Companies | Supports multiple company files in a single license | Limited to one company per subscription |
QuickBooks Desktop is ideal for businesses needing advanced features like detailed reporting, industry-specific tools, and complex inventory management. It becomes even more powerful when hosted, combining desktop functionality with cloud access.
QuickBooks Online is best for small to mid-size businesses seeking easy accessibility, third-party integrations, and more automation, but it has less advanced features than the desktop version.
Choosing between the two depends on your business’s specific needs, such as complexity, scale, and whether cloud access is a priority.
Challenges That QuickBooks Desktop Hosting Faces Because of QuickBooks Online
Intuit’s Backing for QuickBooks Online
QBO is the dearest child for Intuit because it simplifies its operations in a big way. Unlike the desktop version, the upgrades can go without forcing the clients. The pricing model is implemented in a very convenient pattern.
Moreover, the management of the software is easier with its cloud-based application. So, there are enough reasons for Intuit to promote QBO more aggressively among its clients.
Trust in Intuit
Intuit is a major player in the accounting software market and commands massive customer trust. Since QBO is entirely developed and managed by Intuit, it adds a big advantage in support of QBO, even if it lacks certain features and usability.
Unless the hosting provider has considerable experience and genuine affiliations (such as – Intuit Authorized Commercial Host), it is tough for a client to trust the servers of a third party with its financial data.
Wrapping Up
Experts have predicted that QBO will eventually be the only product on offer. That could be true, but considering the current scenario, QuickBooks desktop holds great potential regarding the existing customer base and features one offers.
Hosting it on the cloud adds more substance to these features without removing anything from it, unlike QBO. Intuit favors QuickBooks Online but understands that the desktop version is still here to stay. Even looking at the figures mentioned in Intuit’s Fact Sheet, QuickBooks desktop holds almost equal market shares compared to its online version.
Intuit regularly updates its desktop version, even if they do not carry major changes. It indicates that the company wants the customer experience with QuickBooks desktop to remain convenient with hosting until QBO is ready to overshadow it completely.
Still confused between QuickBooks Desktop and QuickBooks Online? Chat with our Solutions Consultant to know more.
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