QuickBooks Online or Hosted QuickBooks: Which One is Best For Your SMB?

Accounting is important for every business to understand its financial position in detail. An accountant helps business owners to see the wider financial picture which ultimately helps them in framing policies and building plans that are conducive to growth. In short, a CPA takes the stress of accounting and financial management off the owners’ shoulders.

The introduction of technology in accounting has been a win-win situation, both for accountants as well as entrepreneurs. For instance, business owners who prefer to do their accounts on their own can do it with the help of accounting software such as QuickBooks. Whereas, CPAs who are struggling with the pressure of accounting can benefit from the aid that comes with reliable accounting software. 

Why QuickBooks?

Intuit developed QuickBooks primarily to aid small and medium-sized businesses with their daily accounting needs. The idea was to ease-out and simplify money management, which forms the basis of all financial planning for businesses. The QuickBooks software is powerful, comes packed with a line of helpful features, and is all the help needed during the peak season. Businesses can manage invoicing, bill payments, report profits, monitor cash-flows, plan the budget, and more, all with the help of QuickBooks.

QuickBooks Online or Hosted QuickBooks?

This is by far the most important question users come across when they try to take their QuickBooks desktop to the next level. Although the desktop software is filled with features it also comes with a backdrop. Accountants need to be close to their office computer in order to work on their desktop QuickBooks software. For CPAs who prefer to work from home and business owners who often travel for work may find it difficult to monitor their business on-the-go. And, hence comes the need to move to the cloud. 

Users of the software are usually faced with two options while making their switch: QuickBooks Online or QuickBooks Hosting? The best way to decide which option is best for accounting is to have a clear understanding of your particular business needs. Let’s understand the two in detail:

QuickBooks Online

As the popularity of the cloud grew, Intuit, too, felt the need to develop a cloud-based version of QuickBooks for their users who wished to migrate. QuickBooks Online, a reliable cloud-based solution, is both developed and marketed by Intuit. However, the user interface of QuickBooks Online is not the same as the desktop version. So, if you are fairly dependent on some of the features of your QuickBooks desktop that may not be available in the Online version, you might want to rethink your decision. 

Who Can Benefit Most From QuickBooks Online? 

The user interface of QuickBooks Online is different from the desktop version. Users who are switching from the desktop to the online version may need to compromise with the user interface and customization tools that QB desktop offers.

So, QB Online is more suitable for individuals who use the software for personal accounting. However, if you own a business and plan to upscale in the future, you might have to look for options that grow along with the business. 

Hosted QuickBooks

QuickBooks hosting is simply the desktop version of the software stored on a remote server which is controlled by a third-party, located far away from your current location. Business owners who rely heavily on their QuickBooks desktop can directly take their software to the cloud with the help of a reliable QuickBooks hosting provider. The reason being, hosting gives you the exact same software, with all your critical business data, in a secure cloud environment which can only be accessed by you and those authorized by you. 

Your cloud-based QuickBooks can be accessed on any device of your choice, be it a laptop, smartphone, or Mac. You enjoy the freedom of any time, anywhere access, while your hosting provider takes care of all the updates, upgrades, and data backups for you. 

Although the debate revolving around QuickBooks Online Vs. QuickBooks hosting is neverending, from the above description, it is somewhat clear that the online version of QuickBooks is more suitable for individuals who need the software for their personal accounting needs. Whereas, small and medium-sized businesses having more elaborate business needs can rely on hosted QuickBooks without making any compromises.