Is making the switch from Quickbooks Desktop to Quickbooks Online Software worth it?

Thinking about switching accounting software? It's a tough choice, particularly if you've been using QuickBooks Desktop for years. However, QuickBooks Online could revolutionize the way you manage your business's finances. This article dives into the benefits and considerations of making this leap, helping you decide if it’s worth the change for your business.

Understanding QuickBooks Desktop vs. QuickBooks Online

QuickBooks Desktop is a powerful accounting software installed directly on your computer. It’s especially beneficial for larger companies with intricate accounting needs. In contrast, QuickBooks Online is a cloud-based solution that offers flexibility, allows real-time updates, and is accessible from anywhere with an internet connection. If you run a small to mid-sized business, it’s essential to weigh both options based on your specific needs.

Here are key benefits of switching:

Accessibility and Convenience

One of the standout advantages of QuickBooks Online is its accessibility. You can access your financial data from virtually anywhere with an internet connection. A survey found that 65% of small business owners prefer cloud-based solutions for their flexibility.

This means you can manage your accounts from home, while traveling, or even from a coffee shop. The freedom to work wherever you can saves time and allows for a better work-life balance.

An example of cloud-based accounting software in action.

Automatic Updates

QuickBooks Online automatically updates, meaning you never have to worry about maintaining the software manually. Users can spend their time focusing on their business instead of managing software updates. This feature is especially beneficial for small business owners who may lack the technical skills or the time to handle regular updates.

Scalability

As your business grows, your accounting needs will change. QuickBooks Online offers a range of subscription levels that can easily scale with your business. For example, upgrading from the Simple Start plan to Plus costs only about $30 a month, providing additional user access and advanced reporting features that can help as your business expands.

Collaboration Made Easy

Working with an accountant or team that needs access to financial information? QuickBooks Online makes collaboration seamless. Up to 25 users can access the platform at once, allowing accountants to work in real-time. This reduces miscommunication and errors, ultimately streamlining processes and ensuring accuracy in reporting. Linchpin Bookkeeping works exclusively with online and has transitioned many customers from Desktop. All our clients have been delighted with the migration. Many love the ability to request custom live reports on the fly and the improved speed of communications with their bookkeeper or accountant.

Cost Considerations

At first glance, QuickBooks Online's subscription fee may seem higher than the one-time purchase of QuickBooks Desktop. However, take into account the total cost of ownership. QuickBooks Desktop often involves extra expenses for maintenance and upgrades. With QuickBooks Online, those costs are rolled into the monthly fee, which can ultimately save you money. A recent study indicated that businesses switching to QuickBooks Online reported an average savings of 20% over two years.

Enhanced Security

Protecting your business data is critical. QuickBooks Online employs top-notch security measures, including data encryption and multi-factor authentication, to safeguard sensitive information. A recent survey found that cloud-based accounting solutions are 70% less likely to experience data breaches compared to local servers. This offers peace of mind that your financial data is secure.

Integrations and Features

QuickBooks Online boasts easy integration with various applications, enhancing its functionality. You can connect with payment processors like PayPal, customer relationship management tools, and inventory management systems. This extensive range allows you to customize your accounting processes without the inefficiencies that may come with QuickBooks Desktop.

Mobile App Usability

With QuickBooks Online, you can manage your finances on the go using their mobile app. Users can send invoices, track expenses, and even scan receipts directly from their phones. This level of convenience is a significant upgrade from QuickBooks Desktop, which restricts you to a desktop or laptop.

Learning Curve

While transitioning to QuickBooks Online presents many benefits, it's important to prepare for the learning curve. The interface differs slightly, so some training may be necessary for your team. Taking the time to ensure everyone is well-trained can significantly impact the success of the transition.

Customer Support and Resources

QuickBooks Online offers excellent customer support and an array of resources, such as tutorials and a community forum. As you adapt to the new system, having access to reliable support can ease the learning process. Many users report high satisfaction rates, with 85% stating that the support available was helpful during their transition.

Final Thoughts

Making the switch from QuickBooks Desktop to QuickBooks Online is a significant decision that can affect your business operations for years to come. The enhanced accessibility, automatic updates, scalability, and robust security are compelling reasons to consider the change. In addition, it allows you to outsource your accounting to professional services like those offered by Linchpin Bookkeeping, saving on office space and unnecessary payroll obligations.

However, it's crucial to consider potential challenges, such as the learning curve and adapting to the subscription pricing model. Carefully evaluating these factors will help you make the best decision for your business’s future. Reflect on your growth plans and comfort with technology to determine if now is the right time for you to make this transition.