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 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 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 gain insights into their financial performance.
What Makes QuickBooks Desktop a Better Option Than QuickBooks Online for CPAs?
High Optimization Level
Customizability is critical for businesses with current QuickBooks onsite deployments who want to shift the application to a hosted IT environment without switching versions or losing vital features or settings. QuickBooks Hosting is highly flexible and adaptable, making it secure, accessible, and cost-effective.
QuickBooks Hosting
The hosted QuickBooks Desktop allows you to keep track of your inventory, create POs, and assign different price levels to items. 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.
Affordable Pricing
While QuickBooks Online has a lot of functionality, keeping it up to date is still fairly pricey. Yes, one of the less interesting parts of the service is its expense. This pricey framework also includes add-ons, which have their price.
The pricing differs even further when you opt for simple processes like automated data backups, customized reports, automated approvals, etc. These features are not available unless you purchase the application’s most expensive subscription. As a result, using the service’s full functionalities as a small business is quite difficult.
On the other hand, QuickBooks Desktop, when hosted on the cloud, is an affordable option compared to QuickBooks Online. QuickBooks Cloud Hosting eliminates the need for IT personnel to set up an in-house server, connect to many PCs, manage unexpected outages, and arrange regular hardware and software upgrades. All these operations can be handled by a third-party host providing remote services at no additional expense other than the monthly subscription.
Better Third-Party Integration
QuickBooks Desktop on cloud allows you to add other applications or software that integrates with QuickBooks on the same desktop, although QuickBooks Online does not. For example, the hosted QuickBooks interfaces extensively with the CRM software Act!
This means that whenever a new entry is made to the CRM, QuickBooks on the cloud instantly inputs the same data into the system. It saves users a significant amount of time and effort, which has a direct influence on productivity.
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.
Robust Disaster Recovery
Whatever your company’s size, you should invest in a robust and thorough disaster recovery system. However, all of the ideal things aren’t easy to put in place, and CPAs especially find it tough to invest in a solid disaster recovery strategy. CPAs work with a company’s most sensitive data, so disaster recovery must be handled with extreme caution; otherwise, even a minor fault might result in significant loss.
QuickBooks Online vs QuickBooks Desktop: Comparison Table
This comparison table will help you know the key differences between QuickBooks Desktop and QuickBooks Online.
| Factors | QuickBooks Online | QuickBooks Desktop |
|---|---|---|
| Accessibility | Anytime anywhere access | Anytime anywhere access |
| Pricing model | Monthly subscription-based pricing | One-time purchase with optional annual upgrades |
| User access | Multiple users can access it simultaneously | Depending on the license |
| Data storage | Data stored in the cloud | Data stored on the local computer (If QuickBooks Desktop is hosted on the cloud, the data is stored on the cloud) |
| Scalability | Suitable for small to medium-sized businesses | Ideal for small to large-sized businesses |
| Industry-specific tools | Offers industry-specific versions (e.g., retail, nonprofit) | Offers industry-specific versions (e.g., contractor, manufacturing) |
| Customization | Limited customization options | Highly customizable with advanced features |
| Remote access | Available through a web browser or mobile app | Requires remote desktop software for access |
| Support options | Online support, community forums, and chat | Phone and email support, knowledge base |
| Integration | Extensive integrations with third-party apps | Limited integrations with third-party apps |
CPA Firms Using QuickBooks on 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. In order to do so, we helped this accounting firm host QuickBooks Desktop on 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 QuickBooks Hosting provides you with the best of both worlds: desktop and cloud.
Ace Cloud, an QuickBooks Solution Provider, can provide a safe and cost-effective cloud-based accounting solution. It offers 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!
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