QuickBooks Desktop vs. Online, Revisited

You’ve heard the term “flip-flopper”. It’s typically used in politics and it’s a derogatory term for someone who makes an apparent change in policy or opinion.

I’ve always been baffled by the idea that changing an opinion was a bad idea. And certainly, over the course of years or decades, it seems reasonable that you will gain new information or understandings. People change their minds, evolve, and it should be rewarded not chastised.

I’ve been going through my own evolution… in my opinions of QuickBooks Online (QBO). To be honest, I’ve been hesitant to change my mind. After all, I authored a book that clearly affirms my distaste for QBO, and my preference for QB Desktop. And if I came across as flip-flopper, would you think less of me??

For those of you who have not taken my courses or perhaps glossed over that section in my book: QuickBooks is an accounting software designed especially for small businesses like farms, value-add producers and restaurants. It’s the gold-standard for small-business bookkeeping.

I started using QuickBooks in 1997 when I launched my catering business. I bought a floppy disk (remember those?) and installed the program on my computer. Over the years, the “desktop” version evolved… adding more bells and whistles, and a sleeker design. They came out with a version that works on Macs as well as the PC. As computing has changed, you no longer need to purchase the actual disc. Nowadays, you just download the software from the online store. But the program in still installed on your computer.

In 2001, QuickBooks introduced its online version (QBO). Instead of running the program on your computer, you log into a website to run QuickBooks. The program and company files are hosted in the cloud. It simplified things because you can access your company file from any computer or smartphone. For curmudgeons like me, the completely different interface (along with the monthly subscription charge) made a transition from desktop to online not only frustrating, also unnecessary.

I’ve been teaching QuickBooks for farmers for the last 5 years. I have largely ignored the online version with a shrug, “The functions are all still there, just in different places.”

Until now. I recognize that I need to rethink my deeply held belief that the desktop version of the program is better than the online version. More and more of my clients are using online. Even my friend and colleague, Ellen Polishuk who had stood strong with me in the QuickBooks desktop camp just jumped ship and switched to online.

The feature that farmers (and business owners) value the most about the online version is the bank feed. QuickBooks links to your online banking as well as your credit cards; and seamlessly downloads all your transactions into your company file. It simplifies the task of data entry so that you can focus more on the data analysis. For farm businesses that have hundreds of transactions a week, this can be an incredible time saver. And it can reduce some “user error” in the data entry because the vendor, date and amount are automatically captured. All you need to do is enter in the purpose of the transaction.

The other real benefit of QBO is that it’s easier to collaborate and delegate. That means you can have one person in charge of managing expenses (perhaps the field manager) and one person in charge of revenue (the market manager).

Of course, these added benefits come at a cost – $70/month (or $840/year) in perpetuity. For comparison, the desktop version is a onetime expense of $200 – $400; and will last you several years.

I recognize (flip flop???) that for a larger farm business, these features can simplify and streamline the bookkeeping process, and is worth the added expense.

While I’ve evolved my opinion for larger businesses – that the online version has real benefits – I’m not sure I can say the same for all businesses.

For a smaller business, that has just a few transactions a week (let’s say an average of 20/week), the simplification of the bank feed likely isn’t worth the added expense. Especially when you consider that your bookkeeping software alone could cost as much as 1% of total sales.

I’m coming around to QBO; I recognize that it’s the better option for many businesses. For me (as a small business owner with no employees), I still prefer the desktop version: it’s faster and cheaper. I don’t have many transactions to enter, so the “time savings” of the bank feed isn’t worth the “time suck” of the slower processing.

But if you prefer online, I will no longer try to change your opinion.

Note: I do not receive an affiliate fee from QuickBooks, these opinions are mine alone.

If you need help thinking through which version of QuickBooks is right for you, drop me a line.