QuickBooks Online Vs. QuickBooks Hosting: Learn Which One is Better?

Still wondering which accounting solution is right for your business?  

Imagine managing your finances effortlessly—from anywhere, at any time. That’s the power of QuickBooks Online and QuickBooks Hosting. But which one truly aligns with your business needs?  

QuickBooks is a trusted name among business owners, offering a suite of robust accounting tools—from payment processing and payroll to bill management and financial reporting.  

In a rapidly evolving digital landscape, QuickBooks has gained immense popularity, boasting over 1.57 million subscribers. Interestingly, 85% of users prefer QuickBooks Desktop or its hosted version, while around 78% of accounting professionals in small to mid-sized businesses have already embraced cloud-based solutions like hosted QuickBooks.  

In this article, we’ll break down the key differences between QuickBooks Online and QuickBooks Hosting, comparing their features and benefits to help you choose the best fit for your financial management needs. 

QuickBooks Online Overview 

QuickBooks Online (QBO) is a cloud accounting software system developed by Intuit to help businesses manage their finances more efficiently.

QuickBooks Online has emerged as a leading cloud-based accounting software solution, providing businesses with anytime, anywhere access to their financial data.

QBO is particularly well-suited for service-based businesses that do not require complex invoicing features or inventory tracking options. 

When to Choose QuickBooks Online?  

If flexibility and on-the-go access are top priorities, QuickBooks Online (QBO) might be the ideal solution for your business. Here’s when it makes the most sense to go with QBO:   

• You need remote collaboration: QuickBooks Online lets you grant secure access to your accountant or team members—anytime, anywhere. Each user can have a unique login, ensuring easy collaboration without compromising data security.  

• You want automatic, real-time updates: With QBO, changes made by any user are updated instantly across the platform. No need for manual syncing or version control—your data stays accurate and up to date. 

• You prefer working across multiple devices: Whether you’re on a mobile phone, Mac, or PC, QBO requires no software installation. Simply log in via your web browser and manage your finances on the go.  

QuickBooks Hosting Overview  

QuickBooks Hosting is a desktop version of QuickBooks Software hosted on the cloud. It is a cloud-based accounting solution that allows businesses to run their QuickBooks Desktop software on remote servers. It involves hosting the QuickBooks desktop on a third-party provider’s servers and accessing it remotely from anywhere, anytime.

When to Choose QuickBooks Hosting? 

When your business requires more power, speed, and full access to all the features of QuickBooks Desktop—with the added advantage of remote access QuickBooks Hosting becomes the smart choice. Here’s when it stands out:  

• You need automated, secure backups: Hosted QuickBooks ensures your data is backed up regularly and securely by the hosting provider—eliminating the risk of data loss and reducing IT overhead. 

• You demand better performance: With robust server infrastructure, QuickBooks Hosting often delivers faster processing and greater reliability, especially when working with large files or multi-user environments. 

• You want full compatibility with QuickBooks Desktop editions: Unlike QBO, which has limitations in features and version support, QuickBooks Hosting supports all versions and editions of QuickBooks Desktop, ensuring you get exactly what you need—without compromise.

QuickBooks Online Vs. Hosted QuickBooks: Key Factors To Compare

To determine the better option between QuickBooks Online and QuickBooks Hosting, businesses need to compare their features to make a smart decision.

To guide you, Ace Cloud Hosting interviewed Doug Sleeter, a member of its leadership board, who shared valuable insights on the current state of accounting solutions for firms.

His expertise lends a powerful endorsement to any accounting solution that earns his approval, making it a compelling choice for firms looking to optimize their financial management systems.

If more details are needed, here is an in-depth comparison between both cloud accounting solutions: QuickBooks Online vs. Hosted QuickBooks:

1. Security

QuickBooks Hosting offers a fortified layer of security to safeguard your valuable financial data, making it ideal for businesses that comply with industry-specific regulations, such as HIPAA for healthcare or PCI DSS for payment card processing.

Additionally, QuickBooks Hosting by Ace Cloud Hosting comes with advanced security features, such as two-factor authentication, to ensure that data is always protected.

Undoubtedly, QuickBooks Online provides standard data security measures, including encryption and regular data backups. However, businesses still depend on the security implemented by Intuit, the parent company.

QuickBooks Online operates in a shared cloud environment, which may make it more difficult for businesses to comply with industry-specific regulations.

2. Accessibility

QuickBooks Hosting offers the same level of accessibility as QuickBooks Online. Yet, there is a difference in how they provide this accessibility.

QuickBooks Hosting provides remote access to the desktop version of QuickBooks. This means that users can work with the familiar desktop software interface rather than a web-based interface.

With its cloud-based nature, QuickBooks Online provides accessibility from any device with an internet connection, offering flexibility for businesses on the go. Users can conveniently access their financial data from anywhere, anytime.

3. User Experience

Users who have embraced the desktop version can find solace in the fact that QuickBooks Hosting offers the exact same experience. The essence of the classic desktop interface remains intact, providing a seamless continuation of their established workflow from anywhere, at any time.

While QuickBooks Online offers remote accessibility and collaboration advantages, accountants who are used to the offline desktop version might need time to adapt to the online workflow.

QuickBooks Online has a different interface, and some functionalities might be organized differently compared to the desktop version, thus introducing a learning curve for the team.

4. Customization

QuickBooks Hosting brings you all the features of the QB Desktop version along with enhanced customization options. For instance, in the desktop version, you can create highly customized tax reports using the built-in report tools.

Besides customization within the software, with hosting, you can choose to customize your cloud server with other business applications necessary for operations. All applications and add-ons can be hosted in the same cloud, creating the whole accounting ecosystem in the cloud.

QuickBooks Online offers a wide range of features, including invoicing, expense tracking, and financial reporting. It provides a user-friendly interface and easy setup, making it suitable for small businesses and entrepreneurs.

You can gain immediate insights into the performance of your business by utilizing customizable reports and dynamic dashboards that provide a comprehensive overview.

5. Total Cost of Ownership

The pricing of QuickBooks Hosting and QuickBooks Online depends on different factors. Although moving QuickBooks to the cloud with hosting may seem expensive initially, it can be more cost-effective in the long run.

QB hosting providers typically offer flexible pricing plans that allow businesses to pay only for the features and users they need. Also, they offer support and maintenance services as part of their pricing plans, eliminating businesses needing additional IT staff.

QuickBooks Hosting’s cost-effective structure, coupled with savings in hardware, IT maintenance, and disaster recovery, contributes to a lower total cost of ownership compared to maintaining in-house server infrastructure.

QuickBooks Online can be a more affordable option for small businesses with basic accounting needs, but the cost can quickly add up as companies require additional features or users. Although QuickBooks Online’s monthly subscription package is available, its price may differ significantly based on additional services such as full-scale payroll and charges for multiple company profiles.

6. Seamless Integration Capabilities

Both products offer seamless integration with third-party applications as per business needs.

QuickBooks Hosting enables integration with other business tools like CRM systems and ERP software, giving businesses a centralized workspace for managing their finances, tracking financial transactions, and generating reports more easily.

QuickBooks Online offers hundreds of free add-on options along with premium integration capabilities, including DocuSign, Bill.com, HubSpot, and Salesforce, that may require additional costs or third-party software.

7. Disaster Recovery

Both QuickBooks Online and QuickBooks Hosting offer automatic data backups and disaster recovery, ensuring businesses do not lose financial data during a hardware failure or other disaster.

In the case of QuickBooks Hosting, the cloud hosting providers usually use advanced backup technologies, such as incremental backups, to ensure data is backed up efficiently and securely. They offer disaster recovery plans to ensure businesses can quickly recover from any potential disaster.

Users have more control over their data, including access to backups and the ability to restore data. Generally, hosting providers offer features that allow users to take snapshots or backups of their hosted QuickBooks environment. Users can usually request to restore data from a specific backup point in case of data loss or other issues.

In QuickBooks Online, users typically do not have direct access to old backups. Intuit manages the backups behind the scenes, and users don’t usually have the option to restore from specific backup points.

If you need to restore your data to a previous state, you will typically contact QuickBooks Online support to request a data restoration who would assist you in recovering your data based on their backup processes.

8. Maintenance and Upgrades

In QuickBooks Hosting, the cloud hosting provider handles all maintenance and upgrades for the software, ensuring that businesses always have access to the updated version of QuickBooks.

They eliminate the need for companies to worry about upgrading or maintaining their software, which can be time-consuming and costly. Additionally, they provide technical support and troubleshooting services to help businesses resolve any issues that may arise.

In QuickBooks Online, Intuit handles maintenance and upgrades, ensuring a seamless experience. While businesses may not have direct control over update timing, this approach minimizes disruptions and potential concerns associated with new updates.

9. Performance

QuickBooks Hosting leverages the power of remote servers designed specifically for hosting desktop applications, resulting in faster processing times and improved performance. The solution promises high-performance servers with advanced processors, memory, and storage to ensure that QuickBooks runs smoothly and efficiently. Furthermore, it offers dedicated resources for each user, which means that resources are not shared among other users, leading to better performance.

QuickBooks Online is a cloud-based solution that relies heavily on internet connectivity. Furthermore, QBO is a shared cloud environment, which means that system resources are shared among all users, leading to potential performance issues during peak usage times.

10. Scalability

QuickBooks Hosting can offer greater scalability in terms of the ability to add and reduce users, as well as potentially accommodating larger workloads and more complex accounting needs.

While QuickBooks Online offers scalability up to a certain extent within the available plans, it might have limitations on the number of users or advanced features based on the pricing tier. This is in contrast to QuickBooks Hosting, which could potentially provide greater scalability by leveraging hosting providers’ infrastructure.

11. Customer Support

QuickBooks Hosting is managed by third-party hosting providers. Thus, they offer different levels of coverage time and support types, which can vary as per their service. For instance, Ace Cloud Hosting extends 24/7 connectivity support, even on weekends and holidays, and is accessible via online chat or call.

For QuickBooks Online users (Simple Start, Essentials, and Plus Users), live chat is available from Monday to Friday, spanning 6 am to 6 pm IST.

12. Features & Practicality  

QuickBooks Cloud Hosting brings the full power of QuickBooks Desktop only to the cloud—offering robust customization and advanced capabilities tailored to your business needs. It’s an ideal choice for companies that demand greater control, deeper functionality, and flexibility in financial management.  

With hosted QuickBooks, businesses can take advantage of advanced enterprise features like detailed job costing, complex inventory tracking, batch invoicing, and industry-specific reporting. These high-end tools are especially beneficial for sectors like construction, manufacturing, and professional services where precision and customization matter.  

On the other hand, QuickBooks Online, while convenient, has limitations in terms of features and scalability. It may lack some of the more intricate functionalities needed by growing or specialized businesses.

On the other hand, QuickBooks Hosting allows for custom report generation, seamless integration with third-party applications, and support for industry-specific add-ons, providing a more practical and powerful solution for complex accounting needs.   

Differences Between QuickBooks Hosting and QuickBooks Online

Features	QuickBooks Online	QuickBooks Hosting
Accessibility	Accessible through the web browser with stable network connection	Accessible through cloud servers with stable network connection
Advanced Functionality	Offers a wide range of features, including invoicing, expense tracking, and reporting	Offers all the features of QuickBooks Desktop with enhanced functionality and customization options
User Interface and Customization	Features and user experience different than QuickBooks Desktop	Same features and user experience as QuickBooks Desktop, along with some hosting features
Versions	Simple Start, Essentials, and Plus	QuickBooks Pro, Premier, Accountant, POS, and Enterprise
Pricing Structure	Subscription based model	Flexible pricing structure, Eliminates the need for expensive on-premises server infrastructure, resulting in cost savings
Additional Application Hosting	No, Does not allow for hosting additional applications within its platform.	Yes, supports any application. Also allows hosting different year-versions of the same QuickBooks Desktop software.
Third-party Integrations	Yes,  offers integration with third-party applications through its App Store to extend its functionality.	Yes, no limits on third-party add-ons integration
Software Installation	No software installation required	Does not require installation on local devices once it is done on cloud
Manage And Pay Bills	Not available with the basic plan	Yes
Multi User Access	Yes	Yes
Backup And Disaster Recovery	Yes	Yes
Better Lead and Inventory Center	No	Yes
Invoices in Batches	No	Yes
Payroll Function	Available via Add-on	Available via Add-on
Inventory Management	Available only in Plus Plans	Yes
All QuickBooks Desktop Features	No	Yes
Shipping Manager	No	Yes
Processing Speed	Slower than QuickBooks Hosting	Faster (depending on the server)

Which Cloud Accounting Solution Should You Choose?

To conclude, both QuickBooks Online and QuickBooks Hosting have advantages, and deciding which one to choose depends on your business needs.  

While QuickBooks Online offers convenience and scalability, QuickBooks Hosting emerges as the smarter choice for businesses seeking cost savings. QuickBooks Hosting is a powerful solution catering to businesses of all sizes and industries, empowering you with unrivaled convenience, top-notch security, and unparalleled flexibility.    

QuickBooks Online has been widely praised for its accessibility and user-friendly interface, which has made it a popular choice among small and medium-tier businesses that require limited features. However, for those looking to take their accounting capabilities to the next level, QuickBooks Hosting provides unparalleled excellence.

With advanced features and increased accessibility, QuickBooks Hosting offers a more comprehensive and streamlined approach to accounting that can help businesses of all kinds achieve their financial goals.   

By eliminating upfront hardware costs, reducing IT infrastructure maintenance expenses, offering flexible pay-as-you-go pricing, providing data backup and disaster recovery, and delivering a lower total cost of ownership, QuickBooks Hosting enables businesses to optimize their financial management while staying within budget. 

At Ace Cloud Hosting, we excel in delivering seamless performance, top-notch security, and expert support to elevate your accounting experience. Our flexible and scalable hosting solutions ensure you only pay for what you need, while our seamless integration with various applications enhances productivity. 

Get in touch with our experts to get a trial of QuickBooks hosting services at +1-(855) 505-1896 today.   

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