This post has been updated as of January 15, 2024.
There are many advantages for cloud hosting QuickBooks Desktop versus QuickBooks Online (QBO), which while it delivers some benefits over your traditional accounting software, lacks the full functionality of the on-premise application. As a SaaS (Software as a Service) delivery, QBO can be accessed through a browser as well as a mobile app, which along with a few other cloud-based features make it an improvement over legacy systems. However, users will sacrifice many of the strengths of their bookkeeping solution when switching from Desktop to Online, while hosting the former with a trusted cloud service provider (CSP) will keep much of the best of both worlds.
Here are 10 reasons why you should choose cloud hosting QuickBooks Desktop vs. QuickBooks Online for your accounting software:
Features in Hosted QuickBooks Desktop vs QuickBooks Online
QuickBooks Online lacks the extent of functionality that the desktop application comes with, and when migrating from one to the other it is likely you will lose a lot of your existing data since they cannot be converted to applicable formats or fields. Many of the same reports you would use are limited and cannot be exported as separate files, including for payroll, and you will have no way to customize reports.
Online also has other feature limitations, including lacking sales forecasting and inventory tracking. Hosting your QuickBooks Desktop application in the cloud, though, allows you to retain all of the functions you need while still gaining real-time accessibility.
Migration Pains from QuickBooks Desktop to QuickBooks Online
Often there are also challenges in the migration itself when switching from Desktop to QBO. Users will have to relearn new versions of many of the features they are accustomed to, and some of these are not even available without the right plan. The remaining functionality is also typically a “watered down” version of what you would get with QuickBooks Desktop.
Pricing Changes from QuickBooks Desktop to QBO
The web version of QuickBooks has some deceptive pricing applications that can run your costs up – you pay for every QuickBooks company listed as a separate entity. For example, if you are a real estate company with 20 investment properties, you will pay for each of those units as if they were their own company.
Backup Support with a QuickBooks Hosting Provider
While QBO does let you back up data online, the same can be done with QuickBooks Desktop hosted by a service provider. A partner such as SWK Technologies will also perform their own backup, giving you added redundancy to protect your critical financial files.
Less Users for QuickBooks Online vs More in QuickBooks Desktop
Even the highest-priced plan for QBO only hosts 25 users at maximum, versus the 40 that QuickBooks Desktop Enterprise can feature simultaneously. This will severely limit your scalability if you need to add headcount in your system, forcing you to buy more systems to expand the user base and then manually migrate files between the disconnected databases.
Hosted Desktop App vs Mobile App for QuickBooks Online
One advantage that QuickBooks Online does bring is the ability to access your accounting software in a mobile app on your smartphone or tablet computer. However, firsthand user reviews paint a mediocre picture of the Android version at best, with the functionality still only a fraction of what you receive with the actual Desktop application.
Intuit Online Support vs Hosted Desktop Partner Support
Despite it being delivered through the web, QBO still offers the same ponderous support as the traditional on-premise deployment from Intuit, which as a huge publisher needs to spread its time and resources to millions of users concurrently. Hosting QuickBooks Desktop with a provider, however, gives you access to personalized service delivered around the clock.
Optimized QuickBooks vs Retail QuickBooks Online
QuickBooks Online comes as is, essentially functioning similar to giant streaming services where the software is loaded digitally from a remote server. That means that your features come standard, including the processing speed – the same way you have little control over slowdowns for Netflix you will be at the mercy of Intuit when your QBO solution stutters to a crawl. A hosted environment allows your provider to streamline resource usage, and even customize your system with increased CPU or RAM usage.
Integrations for QuickBooks – QBO vs Hosted QBD
As a more static online service, QBO has a shorter list of third-party applications that can be directly integration, limiting the data and features that you can combine with that of your accounting software. Hosting the desktop version of QuickBooks lets you continue to take advantage of your integrated applications – including CRM, WMS and more. A trusted CSP can also help optimize how these systems communicate with each other and customize your technology stack in their cloud environment.
Hosted QuickBooks Updates vs QuickBooks Online Automation
All cloud apps and hosted applications are easier to update than legacy on-premise solutions, with patches being delivered in the background to minimize what would historically have been a disruptive overhaul. However, QuickBooks Online receives updates at consistent intervals and quality being a homogenized retail solution, and you have little room to personalize this. Hosting QuickBooks Desktop with a CSP lets you work with your partner to control the frequency of updates, and create customizations and workarounds for sensitive points in your database.
Fixed QuickBooks Pricing vs Hosting QuickBooks Pricing Options
QBO is a subscription service that comes with a consistent month to month price tag that you must pay or lose access to your application and data. The cost will always remain what Intuit charges, but hosting QuickBooks Desktop gives you options to scale pricing according to your usage and resource costs while taking advantage of QBD’s lower price.
Hosted QuickBooks Backups vs Static Backup Scheduling
Just as with updates, data backups are carried out more seamlessly and frequently with cloud-based systems, leveraging the real-time connection to copy data without interruption. However, this is also a standardized service in QuickBooks Online that you have little room to control, while hosting Desktop with a partner lets you scale the frequency of backing up to better protect your data according to your actual risk.
Conventional QuickBooks Online vs Secure QuickBooks Hosting
Large technology publishers like Intuit must work to protect their widely-used – and widely-targeted – services from hackers, and many have devoted significant attention and resources to defending customers from a breach. However, this security only filters down so much to the organizational level and does not fully safeguard individuals from being hacked. Hosting QuickBooks with a CSP that also offers cybersecurity services will ensure that you are proactively protected at the user level, with real-time monitoring, incident response and personalized support.
Renting QuickBooks Data vs QuickBooks Desktop Ownership
With SaaS products like QuickBooks Online, it is important to remember that unless specifically stated otherwise, control over your data access is ultimately held by the provider. This means that if you stop paying for your subscription, you will most likely not be able to use your accounting software anymore until you renew the contract. With QuickBooks Desktop, hosted or not, you data will always be locally and can interact with it at any time and even if you terminate your contract.
Multi-tenant QBO vs Dedicated QuickBooks Desktop Hosting
QBO being SaaS also means that it is loaded from a multi-tenant environment, meaning that is on a shared server space. This can present issues for some businesses, especially if you need have strict security compliance controls such as those with government contracts. Hosting QuickBooks with a trusted service provider will allow you to take advantage of a dedicated private server for your application and data.
Hosting QuickBooks Partner Support
QBO users might not realize that Intuit will not support their software – technical service is only applied to QuickBooks Enterprise accounts. Working with a partner that will host your QB environment in the cloud allows you to take advantage of their direct support.
Choose QuickBooks Desktop with Secure Cloud Hosting
Choosing to host QuickBooks Desktop with the right provider will grant you many more advantages over deploying QuickBooks Online, enabling you to capture the full return on your accounting software investment. SWK Technologies will protect your valuable financial data with our Secure Cloud Hosting services for your QuickBooks instance – reach out to us today to discover how exactly we can ensure you get the true value from your solution.
Contact SWK here to learn more about our cloud hosting for QuickBooks and how our managed IT and security services make a difference.
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