Why CPAs Prefer QuickBooks On Cloud Over QuickBooks Online?

Like the rest of the world, the accounting sector is continuously changing due to technological improvements. CPAs are not just limited to books; they’ve evolved into a true financial partner capable of much more than simple bookkeeping. 

With fierce competition and changing client demands, QuickBooks continually strives to provide CPAs with the best resources and tools imaginable, all available via the cloud. You may have come across options like QuickBooks Online or QuickBooks Cloud Hosting when looking for the finest QuickBooks Cloud solution. Although they sound similar, they are not. Each service has its own set of features, perks, and offerings. 

However, when it comes to security, cost savings, customization, and other factors, most businesses and CPAs prefer QuickBooks Hosting over QuickBooks Online. Now, you might be thinking, why do CPAs prefer QuickBooks on the cloud over QuickBooks Online? 

Let’s dive into this blog to understand and recognize the difference between QuickBooks Desktop and QuickBooks Online. 

Also Read: The Basic Difference Between QuickBooks on Cloud & QuickBooks Online 

QuickBooks Cloud Hosting 

QuickBooks on the cloud is just the desktop version of QuickBooks hosted on cloud-based servers. Usually, the server is owned by a third-party cloud provider. This setup allows users to benefit from the cloud’s advantages, including scalability, reduced IT expenses, enhanced collaboration, and automatic upgrades. 

Compared to QuickBooks Online, QuickBooks Cloud Hosting offers a more robust solution for complex accounting needs. It provides industry-specific features and customizable options tailored to your business requirements. 

Why QuickBooks Desktop (Enterprise)? 

Here are the features that make QuickBooks Desktop a better option than QuickBooks Online. 

• Since 2002 on the market 

• Streamlined Bill and PO Workflow Approvals 

• Comprehensive Advanced Reporting 

• Seamless W-2 forms generation 

• Available for up to 40 users 

• Enhanced Connectivity with Salesforce CRM 

• Advanced Inventory Management 

• Online Backup, Data Storage, and Recovery 

QuickBooks Online 

Intuit QuickBooks has become one of the world’s most popular accounting software solutions. QuickBooks Online is a cloud-based service that does not require software installation. Its user-friendly interface and real-time collaboration capabilities make it easy for business owners and accountants to manage finances from anywhere. 

QuickBooks Online can be an ideal option for small business owners who want to track their cash flow, manage their invoices, and pay their bills. 

Why QuickBooks Online? 

Here are a few QuickBooks Online features that can reduce the workload of CPAs. 

• Data Tracking 

• Expense Tracking 

• Automated Reporting 

• Payment/Filing Reminders 

• Tax Preparation Tool 

• Available for up to 25 users 

• No installation required 

Similarities Between QuickBooks Online and QuickBooks Cloud 

QuickBooks Online and QuickBooks Cloud share many similarities in their core features, aimed at providing businesses with robust and flexible accounting solutions. 

• Both offer remote access capabilities, allowing users to manage their accounting tasks from anywhere with an internet connection. 

• QuickBooks Desktop and QuickBooks Online provide multi-user collaboration features, allowing team members to work on the same file simultaneously and in real-time. 

• Both QuickBooks solutions offer automatic updates, ensuring users always have access to the updated features. 

• In terms of functionality, QuickBooks Online and QuickBooks Cloud support essential accounting processes such as invoicing, payroll management, expense tracking, and financial reporting. 

• They offer customizable dashboards and reporting tools to assist businesses in gaining insights into their financial performance. 

Reasons CPAs Pick Hosted QuickBooks Desktop Over QuickBooks Online (2025) 

To determine which option is better—QuickBooks Online or QuickBooks Hosting—businesses should compare the features of both to make an informed decision. 

To assist in this evaluation, Ace Cloud Hosting interviewed Doug Sleeter, a member of its leadership board, who provided valuable insights into the current state of accounting solutions for firms. 

His expertise offers strong support for any accounting solution that receives his endorsement, making it an attractive choice for businesses looking to enhance their financial management systems. 

For those seeking more information, here is an in-depth comparison between the two cloud accounting solutions: QuickBooks Online vs. Hosted QuickBooks. 

1. More Functionalities and Feature Centric  

Hosted QuickBooks Enterprise keeps advanced features such as Advanced Inventory, Job Costing, and Progress Invoicing, and it works for up to 40 users at the same time.

The hosted QuickBooks Desktop allows you to keep track of your inventory, create Progress Invoicing (POs), and assign different price levels to items. It works for up to 40 users at the same time. The resources in the hosted QuickBooks Desktop are well-managed, giving the user complete control over the application. 

On the other hand, these features are exclusively accessible in the Plus version of QuickBooks Online, which is not affordable. 

2. It Grows with You During Tax Time 

Need ten extra logins or more computer power for a few weeks? Open the admin panel, turn the dials up, and you’re done. When the rush is over, turn them back down and pay less. With QBO, you have to jump to a bigger, pricier plan and stay there until renewal. 

3. Costs Stay Predictable—and Often Lower 

Moving QuickBooks Desktop to a hosted platform usually looks pricier at first, but the monthly fee wraps in the servers, backups, security, and 24/7 support you’d otherwise buy or staff yourself.

Because you can dial user seats and computing power up or down, you stop paying for resources the moment tax season ends, and you never face a surprise hardware bill or a VPN renewal. Over three years, many mid-size CPA firms find that those savings outstrip the QuickBooks hosting fee. 

QuickBooks Online flips that equation: its starter plans are cheap and perfect for small teams, but costs climb as soon as you add users, payroll, or extra company files, and annual price bumps can erase the early savings. For growing practices that still need desktop-only features, hosted Enterprise often wins the total cost-of-ownership race. 

4. Your Data Sits Where Regulators Expect 

Ace Cloud Hosting lets clients choose US or UK servers that meet ISO 27001 and SOC standards, which is helpful for GDPR and making tax digital rules. 

QBO stores every customer’s data in Intuit’s shared cloud, and you don’t get to choose the region. If a client audit asks, you’ll know exactly where your files live. 

5. All Your Desktop Add-Ons Still Work 

Barcode scanners, niche tax applications, and OCR tools operate on Windows and can run alongside QuickBooks in your hosted session. However, QuickBooks Online (QBO) only supports browser-based applications from its marketplace, which means many desktop plugins are not compatible. 

6. Specialized Industry Solutions 

QuickBooks Cloud Hosting can provide industry-specific solutions that are highly specialized to your business’s needs, such as general contractors, manufacturing, retail, nonprofit organizations, and more. QuickBooks Online, on the other hand, does not have any industry-specific editions. 

Hosted QuickBooks Desktop vs QuickBooks Online: Comparison Table  

This comparison table will help you know the key differences between Hosted QuickBooks Desktop Enterprise and QuickBooks Online.  

Decision Factor	Hosted QuickBooks Desktop (Enterprise)	QuickBooks Online (QBO)
Feature Depth	Full desktop tool-set—Advanced Reporting, Progress Invoicing, Payroll Center	Core accounting + app marketplace
Scalability	Add RAM/CPU or users in minutes; no license cap	Four-tiered plans; 25-user hard limit
Custom Reporting	Enterprise Advanced Reporting module (OLAP-style)	Limited; relies on 3rd-party add-ons
Data Residency	Choose US or UK data centers for GDPR/IRS compliance (by choosing a leading cloud hosting provider, you will get the best deal at an affordable rate)	Data stored in Intuit’s multi-tenant cloud
Third-party Integrations	Yes, no limits on third-party add-ons integration	Yes, offers integration with third-party applications through its App Store to extend its functionality.
Pricing model	A flexible pricing structure eliminates the need for expensive on-premises server infrastructure, resulting in cost savings	Subscription-based model
Adoption Trend	15 % of SMBs still rely on QuickBooks Desktop in 2025 —proof the platform isn’t going away (businessdasher.com)	44 % of SMBs now use QBO (businessdasher.com)

CPA Firms Using QuickBooks on the Cloud 

Here are a few examples to help you know why CPAs prefer QuickBooks cloud hosting over QuickBooks Online. 

Lereah & Associates PLLC 

Lereah & Associates PLLC provides reliable tax and accounting services for clients of all sizes with a team dedicated to offering exceptional tax planning and tax return preparation services. 

This renowned accounting firm is in Old Town Alexandria, VA, and has partnered with Ace Cloud to enhance its financial processes and boost efficiency for its clients. To do so, we helped this accounting firm host QuickBooks Desktop on the Cloud. 

To learn what sort of challenges firms faced and the solutions we implemented to improve their outcomes read the detailed “Lereah & Associates PLLC Success Journey with Ace Cloud’s Hosted QuickBooks Desktop” case study. 

Jameson & Co. 

Jameson & Co. is a leading accounting firm that provides government contractors with outsourced accounting services. Traditionally, the firm heavily relied on QuickBooks in its desktop form for managing various tasks, including bookkeeping and write-up tasks. 

When collaborative cloud-based solutions became necessary, the firm transitioned to QuickBooks Online (QBO). However, Jameson & Co. later faced certain issues, including Difficulty collaborating due to version differences and struggling with traditional accounting methods. The client then decided to continue using QuickBooks Desktop. 

Moreover, Ace Cloud assisted the firm with seamless data migration to the cloud and provided managed services for enhanced security. Read the detailed “Jameson & Co. Gained Accounting Efficiency with Ace Cloud’s Application Hosting Solutions” case study to learn more about the challenges firms faced and the solutions we implemented to improve their outcomes. 

Bottom Line 

While QuickBooks Online is new and constantly evolving, the easiest option appears to be hosting QuickBooks on the cloud. With almost everything remaining, like the desktop version, QuickBooks Cloud Hosting also promises the cloud’s benefits. As a result, Ace Cloud Hosting QuickBooks Hosting service offers you the best of both worlds: desktop and cloud. 

We provide a safe and cost-effective cloud-based accounting solution by offering industry-specific solutions appropriate for various types of professionals, including CPAs. Take advantage of all the capabilities of your desktop application while benefiting from the flexibility and mobility of the cloud. Get in touch with us right away! 

Frequently Asked Questions (FAQs)

1. Is QuickBooks Enterprise Hosting secure? 

Absolutely. Hosting providers use data centers with high-security standards, such as ISO 27001 and SOC certifications. Your data stays protected with encrypted backups, firewalls, and 24/7 monitoring, giving you peace of mind without needing a dedicated IT team. 

2. Can I access QuickBooks Enterprise Hosting from any device? 

Yes! You can log in securely from a PC, Mac, tablet, or even a smartphone. All you need is an internet connection, and you get the full desktop QuickBooks experience no matter where you are. 

3. What if I need help setting up or troubleshooting QuickBooks Hosting? 

A leading Hosting provider like Ace Cloud Hosting offers dedicated support for hosting-related issues. They’re available 24/7 to help with setup, troubleshooting, and general questions, so you don’t have to call multiple vendors. 

4. How does QuickBooks Hosting impact my firm’s IT costs? 

Moving QuickBooks to the cloud eliminates the need for expensive servers, backup systems, and in-house IT maintenance. Hosting fees often include updates, backups, and support, so your IT costs become more predictable and often lower than managing your own hardware.