What is QuickBooks?
Before we go to the battle between Hosted QuickBooks and QuickBooks Online, let us first define the software. QuickBooks is a popular business accounting software that helps a business manage income and expenses. It also keeps track of the financial status of a business. The software allows an operating business to manage sales and costs, generating reports, tax filing, and more. Scott Cook and Tom Proulx were the inventors of QuickBooks in the year 1983. It is in 2003 where it started to be relevant to different industries. Since its first version, QuickBooks made the following updates according to the specific industry needs. Through the years, it scattered to different markets worldwide. QuickBooks product line offers easy to customize and works great for anyone, from a small to midsized business.
How does QuickBooks work?
For your business to be successfully productive, it is essential to know how to use the software. It would be best if you will master the essentials of using QuickBooks to manage your business needs. But like any new piece of software, it requires learning the basics and the steps to becoming proficient before it can effectively manage all your small business accounting. Now, let us answer the question of how it works.
1. Chart of Accounts
Chart of Accounts contains the financial information of your company. These include a list of liability, assets, expense accounts, and income, equity for assigning your daily transactions. Account balances and information, including account numbers and contact details, appear within each account’s window. A list of accounts will appear just under the Lists menu in your Chart of Accounts. Reminder, make sure to avoid deleting your account. Instead, make the account inactive for your tracking to be accurate.
2. Vendor, Customer, and Item List
Quickbooks provides a solution to easily maintain the customer and vendor item list in one place. There are three main centers for managing your contacts and inventory. We have the Customer and Vendor Centers that contain the lists of transactions related to a customer or vendor in a single location. Also, the Inventory Center manages the inventory and non-inventory items. Every center will give e a choice to search, edit, add, edit or delete vendors, customers, and items.
It is now stress-free to make a smart decision for all your reports. Once you run a report, customize the report to filter information by a specific customer, vendor, item, transaction date. You can also show past due payments and other important information. After running a report, then you can add it to your memorized or favorite report list so that you can access it whenever you want. Add your report to your memorized or favorite report list for you to access it in the future. A list of pre-configured reports appears within the Reports drop-down menu. The Profit & Loss report provides businesses with one of the most commonly used reports.
Payroll provides the capability to manage paychecks, pay liabilities and set annual limits on special payments such as tips or vacation pay. Manage workers’ compensation, tax-exempt employees, and tax forms within the Payroll Center. QuickBooks provides a service that provides online payroll options to send a direct deposit and email receipts of payments for a monthly fee. Assign payroll permissions to specific users if you are using a multi-user QuickBooks account setup. Additionally, edit information from the Employee Center to add additional deductions, tips, and other employee-specific details.
5. Billing and Invoices
QuickBooks provides two types of statements — Billing and Invoice statements. Billing statements bill a customer with charges over some time — for example, a construction company with charges that accumulate over several months as materials and other costs build up. Billing statements get recorded in a special register called the Customer Register. Invoice statements work best for items purchased and paid for in a single transaction and don’t accumulate over time. For instance, a bookstore that orders a book for a customer might provide an invoice payable upon ordering or receipt of the book.
Differences between Hosted Quickbooks and Online QuickBooks
A lot think that Hosted QuickBooks and QuickBooks Online are the same when they are not. Traditional QuickBooks is developing, and now we have QuickBooks Online and QuickBooks hosting on the plate to serve the best of the accounting solutions with the least efforts. Nowadays, cloud technology option for QuickBooks is becoming a trend for business owners. Presently, there are two modes of using QuickBooks on cloud – QuickBooks Online and QuickBooks Hosting that are widely used by businesses.
Hosted QuickBooks is the installation of the QuickBooks Desktop version on the network. It is hosted by a third-party cloud service provider over the internet to provide access to the data or files via a web browser wherever you are. The end users can have their licensed copies of the QuickBooks software hosted on the hosting company’s remote server, or they can lease the license from the hosting company and then have QuickBooks hosted online on the cloud.
Hosted QuickBooks vs. Online QuickBooks | A Comparison
In this article, the comparison between the two versions of the business accounting software aims to help small businesses decide what’s better for them. Features, data accessibility, and pricing – these are the three areas that differs QuickBooks Desktop and QuickBooks Online. The business accounting software has currently more feautures in Desktop hosting that QuickBooks Online.
Which is best for you?
It is important to choose the right tool in order to meet the needs of the clients. However, since most businesses have different clients, you will be given the option to choose what version best suits your organization. There is no such better version of Quickbooks. Both of them have their pros and cons and is chosen according to the business requirement.
You can avail QuickBooks Online with a monthly subscription ranging from $12.95 to $39.95 per month. Whereas, QuickBooks Pro and Premier version can be bought with a one-time payment of about $300. QuickBooks Enterprise comes with an annual subscription of about $1100-$1800.
Let us talk about the performance.
The Desktop version of QuickBooks offers more robust and more developed journal entries and importing/exporting capabilities, budgeting, contract management, and bank reconciliation features. The online version lacks many of the Inventory management, Project Management, and Reporting features along with the To-Do list. Meanwhile, some functions are done manually in the desktop version that is automated in the online version. Sending invoices, meeting schedules, customer billing, email reports, and downloading bank transactions are more manageable in QuickBooks Online.
QuickBooks Online offers multiple users in different remote locations to work collaboratively making informed decisions in real-time. It is an advantage you will get when you avail Quickbooks Online hosting on the cloud. Data in the Desktop version can be hosted too. Although, the function needs to be paid. People can only work on their PCs, unlike those using Online versions accessing their data through laptops and mobile phones while traveling or attending meetings. QuickBooks Desktop hosting gives you the option to choose among the various versions such as Pro, Premier, Accountant, or Enterprise Solution that serve different industries of every scale.
The choice of choosing between the two versions goes down to your priorities and what your business requires.
Learn more from the experts! Contact us if you are still confused about what to choose between QuickBooks Hosting and QuickBooks Online.