QuickBooks Desktop VS Online;
Which Is Best For Construction?
QuickBooks is an accounting software that helps in the day-to-day management of accounting activities like
- payroll processing
- bookkeeping
- inventory
- sales
- purchases
- expenses, and a lot more
Both big corporations and small businesses make use of accounting software, although their use cases differ. What this means is that big businesses may use accounting software for complex accounting processes but small businesses only need something lightweight and efficient for less complex accounting processes. This is where QuickBooks comes in.
QuickBooks is an accounting software developed by Intuit and first launched in 1983. They quickly distinguished themselves by focusing solely on a niche group of businesses; small and medium businesses or SMBs. Despite the name, small and medium businesses;
- Makeup 99.9% of businesses in the US
- Employ more than 40% of the workforce
- Provide the most job opportunities with a projected growth rate of 924% in the next decade despite the fact that;
- 8 out of 10 small and medium businesses do not have
Clearly, SMBs are the foundation of the American economy. But what does this have to do with QuickBooks?
By targeting small and medium businesses, QuickBooks instantly positioned itself as the go-to accounting software for these businesses. QuickBooks is one of the most popular accounting
software. QuickBooks is also considered one of the best accounting software because
- it is easy to use
- feature-packed
- affordable
With over 473,108 small and medium businesses in the construction sector, it is a no-brainer why QuickBooks is the accounting software of choice.
The challenge now is choosing the right QuickBooks edition. This article will help you understand the differences between QuickBooks Desktop and QuickBooks Online, the pros and cons, as well as key features of each edition.
QuickBooks Desktop Vs Online: What’s the Difference?
Desktop software existed long before cloud computing became a thing. On the surface, the main difference between a desktop and the online version of the software is basically where the bulk of the data is stored. Most software still operates this way but software manufacturers are gradually moving their software from the more traditional desktop-based to cloud-based versions. Intuit, the company behind QuickBooks, launched an online version in 2001. Indeed, QuickBooks Desktop was already quite popular, but that was nothing compared to QuickBooks Online. In 2002, barely 2 years after it was launched, Intuit had a 34% growth in its Online Ecosystem which consist primarily of QuickBooks online. Why is that?
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Differences |
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QuickBooks Desktop |
QuickBooks Online |
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Installment on PC – Desktop software are often downloaded and installed on the PC. All the operation and processes of the software are run from the installation point. |
No need of installment on any PC Flexibility due to the cloud-based version Log-in access from everywhere and anywhere at any point in time as long as there is an internet connection Assign costs to overall projects Please note the below services are unavailable with the Online version: · Assign costs to a particular invoice, sales receipt, or estimate · Create special proactive reports or notifications indicating when a project is getting close to budget or has exceeded budget. |
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Differences |
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Services & Functions |
QuickBooks Desktop |
QuickBooks Online |
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Create committed costs report or a WIP report |
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× |
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Create Job Progress Percent reports, Estimates Versus Actuals, and other commonly needed reports |
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× |
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Create a Project Job Status report |
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× |
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Organize or track projects by Job Type |
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× |
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Track actual completion date, estimated completion dates, start date, and other common important dates |
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× |
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To calculate projected margin in a project, create an estimate with estimated item cost |
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× |
Here is a video that will help you with your choice:
QuickBooks Desktop vs Online: Direct Comparison
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QuickBooks Desktop |
QuickBooks Online |
Best For |
Businesses with a more traditional setup where everything is done in-house and there is hardly any need for remote work |
Businesses with a modern approach to work. Where employees work remotely and may need to be able to access the data from anywhere and at any time. |
Available versions |
QuickBooks Desktop is available in the premium plus and Enterprise plans only. |
QuickBooks Online offers four different plans to choose from these are; Simple Start, Essentials, Plus, and Advanced. |
Number of users |
The Premium Plus plan allows a maximum of 5 users only, but up to 40 users can make use of the Enterprise plan. |
Here is a breakdown of the number of users per plan for QuickBooks Online. · Simple Start – 1 user · Essential – Max. of 3 users · Plus – Max. of 5 users · Advanced – Up to 25 users |
Ease of use |
QuickBooks desktop shares a lot of similarities with the Online version. It has an intuitive and user-friendly interface and generally boasts more advanced features some of which are tailored to a specific industry. But it still lacks behind in terms of ease of use. |
QuickBooks Online offers time-saving and automation features that make it much easier to use. It also provides a helpful guide that can speed up learning. |
Support |
According to Intuit, all access and support for some versions of QuickBooks Desktop was discontinued on 30th June 2023. This has created a lot of ripple in the community and many users wonder what the future of QuickBooks Desktop is. However, not all versions of QuickBooks Desktop are affected. |
While phasing out QuickBooks Desktop, intuit seems to be doubling down on its support for QuickBooks Online. This includes providing necessary support for users who want to transition from the Desktop to the Online version. |
Scalability |
With only two plans, QuickBooks Desktop is less scalable. Users either go with the Premium or Enterprise |
QuickBooks Online is very scalable. Users have four plans to choose from, and each one offers slightly more |
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plans both of which have limited numbers of users and more users mean extra cost. |
features for a fixed monthly subscription. |
Accessibility |
Only accessible through the desktop where the software has been installed. |
It can be accessed anywhere through a desktop or mobile app. |
Compatibility |
Very compatible with Desktop but mobile interface is limited. |
Compatible with desktops, mobile phones, and tablets. |
Price |
QuickBooks Desktop has an annual subscription that starts at $799 for the Premium Plus and $1410 for the Enterprise Plan. |
QuickBooks Online has a monthly subscription of: · $15 for the Simple Start plan · $30 for the Essential plan · $45 for Plus and · $100 for the Advanced plan |
QuickBooks Desktop vs Online: Key Features & Integrations
There are a few differences and similarities between QuickBooks Desktop and the Online version. In this section, we will be looking at the core features and integrations that make one better than the other especially when it concerns the construction industry.
Let’s start by looking at some of the features that Quickbook offers the construction industry;
QuickBooks Desktop for Contractors is a software specifically designed for the construction industry with features like;
- Advanced Reporting
- Advanced Inventory
- Job Costing – track job costs in real time with Enterprise’s powerful job costing tools
- Field Service Management
- Order Management
- Job Tracking
- Time Tracking
- Timesheets
- e-Billing, and
- Assisted Payroll – with printed checks, direct deposit or both. Payroll taxes filings are guaranteed on-time and accurate
But there is a caveat, many of these services are limited on the Desktop version of QuickBooks and some features incur additional charges.
QuickBooks Online is not as customized as the Desktop version but offers more features like;
- Bill Management
- Bookkeeping
- Better Integration
- Invoicing
- Employee Timesheet
- E-commerce
- Mileage Tracker
- Cloud Accounting
- Timesheets
- Workforce management – Cloud access gives you the option to work from anywhere, thus you can easily manage workers in the field with Field Service Management. Plus, your workers can track time on their mobile devices* and the data syncs with
Although QuickBooks Online has more general features, the ease of customization has been one of the deciding factors for most businesses that go for the Desktop version.
QuickBooks Desktop: Pros & Cons
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QuickBooks Desktop for a construction company |
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Pros |
Cons |
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× Limited cloud storage × Limited plans to choose from × Upgrades often comes at an extra cost × Requires more infrastructure to set up × Integrates with fewer number of applications |
What Real Construction Professionals Say
Now you know the pros and cons of both QuickBooks Desktop and Online, let’s see what real construction professionals have to say. QuickBooks have a rating of 4.6 out of 5 on Trustpilot. On a general note, users praised the online support provided by QuickBooks. The onboarding process, issues resolutions, and assistance when migrating from one platform to another were top of the list of what users liked.
Online support is a privilege that those who make use of QuickBooks Online enjoy the most. There is also a nifty help feature called Priority Circle that provides exclusive support to QuickBooks Desktop Enterprise and QuickBooks Online Advanced users only.
One user in the construction industry pointed out the ease of reporting with QuickBooks Desktop and expressed dissatisfaction over the decision the company has taken with regards to discontinuing the Payroll function on the Desktop version of the software as of April 2020.
Another user who is also in the construction industry was concerned about the security of the platform since QuickBooks requested the submission of personnel details like – username, password, and memorable information – used in bank accounts to be able to sync bank transactions successfully. However, this is not compulsory since transactions can also be entered manually.
Overall, the reviews suggest that most professionals are migrating from QuickBooks Desktop to QuickBooks Online mainly due to the additional support and attention given to the Online version by the company.
When to Use QuickBooks Desktop vs Online?
Customization and Industry-Specific Features
One of the selling points of QuickBooks desktops is customization. Apart from being able to customize the user interface to suit the need of your business, you can also opt for the industry-
specific version of the software. Yes, QuickBooks Desktop comes in different editions which are known as industry solutions and designed for clients in specific industries. They are; QuickBooks Desktop for Manufacturers, Wholesale/Distribution. Nonprofits, Accountants, Retail, Professional Services, and Construction/Contractors. Each of these editions has features tailored to that specific industry. This is not available for QuickBooks Online. Also, the level of customization on QuickBooks Online is not as extensive as what is achievable with QuickBooks Desktop.
Integration
What is integration? This is the ability to use QuickBooks with a third-party app. The ability to integrate with third-party applications stretches the functionality of QuickBooks whether it is the Desktop or Online versions. Although integration is possible with both the Desktop and Online version of QuickBooks, what differentiates the two is the number of applications that can be integrated. QuickBooks Desktop can integrate with over 200 plus applications while QuickBooks Online can integrate with up to 750 applications. Workyard is an example of a Third-Party app that is designed to integrate with QuickBooks Desktop. With Workyard, businesses in the construction industry can track time, mileage, and GPS location, perform job scheduling and costing and even integrate with other applications for accounting and payroll activities. As you can see, third-party app integration is literally a superpower.
Fees and Sharing Options
Both the Desktop and Online versions of QuickBooks accept multiple users. The maximum number of users for QuickBooks Desktop is 40 while QuickBooks Online accepts a maximum of 25 users. Although this is significantly smaller, the advantage is that, unlike the Desktop version, there is no additional cost per user for QuickBooks Online. That is, for each new user, you are likely going to be charged an extra fee if you are using QuickBooks Desktop. Also, QuickBooks Online is a better option when sharing the software with several users because they can simply log in from anywhere with their login credentials. But sharing on QuickBooks desktop is not so straightforward. You would have to make an Accountant’s copy of the software and share it with other users through email or USB. Even if this is done successfully, you must ensure that both the QuickBooks Desktop and Accountant copy are the same version. If either one is updated to a more recent version and the other is not, there could be problems when importing the files.
Cloud Access and Data Security
If you want to access QuickBooks from anywhere at any time, then the Online version is the best choice. QuickBooks Online provides limitless cloud storage, automatic data backup, and data protection. It is an ideal option for small and medium businesses that do not have on-site IT infrastructure to store and protect their data. Businesses with the necessary infrastructure could choose to protect their data and go for QuickBooks Desktop. But one challenge with QuickBooks Desktop has always been limited access. However, there is a workaround and that is by paying extra for hosting. What is hosting? Hosting is when QuickBooks Desktop users can connect to the cloud which then gives them access to the Desktop software from different locations. It is a great feature, especially for users in the construction industry who intend to make use of features such as Field Service Management. The drawback is that this will cost the business additional fees. The extra money you’ll have to pay depends on the storage space needed. The Core plan comes with 5GB storage, The Classic plan comes with 10 GB storage and the Deluxe plan comes with 50GB storage.
The Final Verdict
If you have been reading this article, then you probably want to know if you should go for QuickBooks Desktop or QuickBooks Online. There are several key points in this article that should help you in making a choice. But if you still find yourself on the fence, then this should help;
First, you need to be clear on your preferences. If you need more flexibility to customize your software and features that are tailored specifically for the construction industry, then QuickBooks Desktop is your best choice. But if you need more access and have more users, then QuickBooks Online will be a better choice.
The second thing to consider is your budget. QuickBooks Desktop has a yearly subscription plan and fewer options compared to the Online version. It also comes with a fixed number of users with the option to increase the number of users for a fee. Overall, if you have multiple users, then QuickBooks Online is a better choice.
The third thing to consider is integration. What applications do you plan to use with the software? If you want to take advantage of the integration feature without having to pay extra for hosting (cloud access), then QuickBooks Online is a better choice for you.
That being said, don’t forget to check out Workyard and see just how amazing it can be to have an app that makes automating tasks like invoicing, payroll, and other accounting activities a breeze, plus the ability to keep track of time, labor costs, mileage and much more all from one app. With Workyard, you can better manage your construction business.
The post QuickBooks Desktop VS Online appeared first on Workyard.
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