Which version of quick books should I be using?

Question

So my partner and I are in the trial period for quickbooks and noticed that there are two versions, the desktop and online version. Is one better than the other for real estate investors? Does anyone know the differences between them?

Matthew Otero · Answer

@Jake Stuttgen

Thanks for the tip. I’ve looked at Stessa briefly, may have to revisit

Gita Faust · Answer

What are you looking for, start with your checklist, your current workflow, and process? Saying that, there are few things on this post, I would like to address:

• Bank integration - It is available in both the version. There may be a monthly charge associated by your bank. Few local banks will not have the capability. But then there is always workaround like downloading and uploading it to QuickBooks. Easy!

• Rent collection - You can collect rent by ACH or credit card for a nominal fee. We have few clients, who use desktop and online. QuickBooks has the option for pay as you go and have competitive rates.

• Backup - Does not matter which software you use, on your computer or virtual, you are responsible to make your own backups. Make your own backup for everything even QuickBooks Online, Gmail, Drive, Dropbox. Go figure!

• Switching from QuickBooks Desktop to QuickBooks Online and vice versa - yes, it is easy, but not at the same time. It all depends on the features you are using. For e.g. in QuickBooks Online there is a feature - Location, while it is not available on the Pro, Premier, Accountant and Enterprise feature - converting data is not going to work. It all depends on your setup and the features you use. Also depending if you have over 250 Chart of Accounts and convert to QBO then you will be bumped into the Advanced level. We run into this issue every day – memorized reports and transactions with not convert from one to another.

• Upgrading - QuickBooks Desktop should be upgraded every three years. There is a sunset policy in place where Intuit will not support the software or issue any updates. 2016 and earlier version are out. While the Online version - it is updated every few months and ever-evolving with new features and reports.

• Outsource bookkeeping - Does not matter which QuickBooks version you use; you can be in Timbuktu and still access your QuickBooks Desktop file as low as $12/month. Super cheap! Remember the other person accessing your file should have the software installed on their computer. Question is do you want to choose a software that works for you or the other way around.

• Accountant access - Using QuickBooks Desktop, your accountants do not need the software - ask them to log into your computer and get what we need or send them reports. Before you make a decision ask yourself - how many times does the accountant access your files and financials. If it is once a year. Select what is best for you. Online - give them access. Simple!

• Reporting - is just another topic to discuss.

Make a plan, not for today, but three years out and decide on protecting your data today, everything has a cost, but if you are looking to grow, invest not only in properties but your business as well.

Matthew Otero · Answer

Thanks to everyone who responded and shared, its very much appreciated!

Daniel Hyman · Answer

It seems like this is for a partnership. That being the case, unless you or your partner has an accounting background, you will invariably run into some bookkeeping traps. That's where an accountant will come in handy. Your partnership return will require a balance sheet, which is more complex than a simple income statement that many investors require. Keeping your books in the cloud (QBO) will open you up to a more seamless and efficient way of interacting with your accountant.

Stephen Menke · Answer

@Matthew Otero - Here are the quick bullets I give my clients. Yes, you will save money in the long run with QB Desktop. However, I think the long term benefits of Online may be worth the value, and I would recommend it as the portfolio grows.

Also, keep in mind that this is not a permanent decision. You can usually migrate from one to the other without too much headache.

1) COST - QB Desktop is sold as a flat application cost ($200-$1,000) while QB Online is sold on a Software as a service (SAAS) model (monthly subscription $10-$150).

2) UPDATES - W/ QB Desktop you will need to buy the new version and upgrade to receive any updates. W/ QB Online, intuit rolls updates out routinely in the background.

3) PROTECTION - W/ QB Desktop you are responsible for the protection of your files (e.g., file backups, potential corruption, hardware issues). W/ QB Online Intuit guarantees against such risk.

4) ACCESS - W/ QB Desktop you generally can only access it from the installed computer. However, there are other services available that you can utilize to host virtually. W/ QB Online you can access anywhere with an internet connection and have access to a suite of mobile apps.

5) ASSISTANCE - W/ QB Desktop you will need to share the file with an accountant or consultant either through a secure portal or via physical delivery. W/ QB Online access can be granted to an accountant online in minutes.

Dan V. · Answer

Both versions will work, you just need to set it up right. Some prefer desktop since it's cheaper but some prefer online for accessibility and convenience. I think most of those who prefer desktop are handling their books in-house while online users outsource their bookkeeping.

Matthew Otero · Answer

@Dan

Thanks for the info, very helpful

Dan Perrott · Answer

@Matthew Otero - we use QB 2019 desktop as our choice was not to put the business accounting books on the Intuit cloud.  We keep all of our books local.

Note that the intuit business model is to get you to use the internet version and charging you a monthly fee to access your data versus one time software cost.  There are advantages to being online (for example, online backups to the cloud, credit card services, bank integtation)  but we did not feel that we needed the extra services at this time.  Also note that you will need to upgrade the desktop version every 4-5 years.

Jake S. · Answer

When I used QB I was using online. Now I use Stessa and I highly recommend it