Before starting comparing QuickBooks Online and QuickBooks Desktop, let me clarify that both of these are two different versions of QuickBooks which are efficient at what these have been designed for. So, let us not confuse ourselves with the word comparison, yet we should understand the points that make QuickBooks Online and QuickBooks desktop two different versions suitable for different business requirements. Both the QuickBooks versions have a number of add-on options, however, QuickBooks desktop has more options than QuickBooks online if we look at the current status of both the products. No doubt the add-on status keep changing speedily.

So, before choosing one, we must be clear about the set of business requirements. Again, you cannot pick one, unless you have a fair idea about the features and functionalities of these two versions.
 
Throughout this article, we will discuss QuickBooks Desktop, Windows Version and not the QuickBooks Mac Version and refer to the US versions of both the Intuit Products. I will not mention the advanced inventory feature of QuickBooks Enterprise hosting as it can be considered as an add-on product, the reason being it can be availed at a significant additional fee only. To keep it simpler, I will not get into details of all the variations, like QuickBooks Premier, QuickBooks Enterprise or QuickBooks Accountant and will simply focus on QuickBooks Desktop and QuickBooks Online.

To start with an apparent comparison between QuickBooks desktop and QuickBooks Online:

Following features belong to QuickBooks Desktop alone and not to the QuickBooks Online:

• Average Cost inventory valuation/ Forecasting Price Levels
• Billing Time preferences/ Change orders on Estimates
• Expenses preferences/ Balance Sheet by Category
• Business Planner/Calendar
• Progress Invoicing/Billing/ Billing rate level
• Receiving partly against purchase order/ Batch Invoicing
• Report Favorites/ Reporting / Collections center
• Collapse rows/ Sharing report templates
• Inventory manager/ Shipping Manager
• Sales Order Fulfillment Worksheet/ Sales Orders
• Transaction History Panel/ Batch Timesheet Entry
• Units of Measure/ Rebuild points

 
Now, let us have a look at the features that belong to QuickBooks Online services alone and cannot be availed with QuickBooks Desktop without paying for add-ons:

● Feature of remote access – you can access your QuickBooks online from anywhere, however, you need to opt for QuickBooks cloud hosting in order to access your QuickBooks desktop from the remote area.
● Auto Sending – you can auto send your reports via QuickBooks online
● Automatic update feature – Your QuickBooks online is designed to auto update
● Company Scorecard/ Transaction center
● Entry of deferred charges/billing / Income List
● Auto Invoice Creation/ Location tracking
● FIFO Inventory valuation/ A/R or A/P account are more than 1/journal entry
 
Please note that this article will work only as the beginning of the understanding of the pros and cons of using QuickBooks Online and QuickBooks desktop services. You must fully understand the functionality of both the products before recommending or opting for any of the QuickBooks versions.

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