Pros and cons of quickbooks online unveiled

Pros and Cons of QuickBooks Online Unveiled

QuickBooks online is quickly becoming the accounting software of choice for both small and big firms. The cloud version of the popular accounting software makes it easy to record accounting data, track payments and receipts, and organize the finances.

QuickBooks online runs on Intuit's server and can easily be accessed from anywhere, anytime.

The internet-based accounting software offers similar features to the desktop version of the accounting software. And in case you are thinking about migrating to the cloud version of QuickBooks, the pros and cons given below will help you make a smart choice.

Positive Aspects of QuickBooks Online 1. QuickBooks online is easy to setup and maintain as compared to the desktop version of accounting software. You do not need to install costly server and storage medium to store the data. This results in cost savings for the firm that positively affects its bottom line.

2. QBO is far cheaper than purchasing multiple user licenses of QuickBooks desktop. You only have to pay a monthly subscription fee, which is based on the number of users who access the software. Also, you can get significant discounts if your accountant is enrolled in the QuickBooks pro advisor plan. The Pro-advisor plan is a training and certification program to increase expertise and knowledge of QuickBooks.

3. The biggest benefit of QBO is ease and convenience of accessing the accounting data. Intuit's server is online 24/7 which allows users to access QBO from anywhere, anytime. Users only need an internet connection and a web browser to access the cloud version of the accounting software. Portability of accounting software is extremely beneficial for the business owners who can monitor and manage their finances from anywhere even while vacationing abroad.

4. The World Wide Web is notorious for being vulnerable to viruses and hacking attacks. Yet Intuit's advanced security features ensure 100% safety and security of the accounting data. The company has implemented various security measures to ensure that the client's data remains safe and secure. The accounting data transmitted over the net is encrypted with SSL (Secure Socket Layer) 128-bit encryption technology. Finally, QBO is a VeriSign secured product, which is the leading SSL certificate issuing authority.

5. Have you ever faced issues with trying to send accounting data to the accountant for review while he or she is off duty? You don't have to worry anymore with QuickBooks online. The cloud version of the accounting software allows you to grant access to the accountant to review, plan, make corrections, and handle all accounting data without having to go through the backup and restore process.

6. Multiple users can work on a company file at any given time. Multiple-user functionality increases productivity and collaboration among the accounting staff.

7. Various add-ons are available for the online version of the accounting software that provides value-added functionality in performing accounting functions. You can use the add-ons to track employees' time for payroll, synchronize the company's PayPal related transactions with QBO, and install dashboard to get deep insights about the company.

Negative Aspects of QuickBooks online 1. QuickBooks online is not compatible with non-intuit payroll services like Paycor, ADP. You need to make a manual payroll journal entry into your QBO to record your payroll.

2. Another disadvantage of QBO is that not all banks can be set up to download banking information. Although it is not a major disadvantage but it is something that you should be aware of about QBO. Some local banks do not have the technology to implement this feature.

While other banks ask a security question to log you out if your session has expired making it difficult to download transaction data.

3. QBO includes a payroll program and can e-file your federal return once you have signed in for EFTPS and Federal e-filing. Nevertheless, the online accounting software is not compatible with e-filing returns in a number of states in the U.S.

4. The major drawback of QuickBooks online is that online software grants access to five users, not including the accountant. This can be a drawback if your company employs hundreds of accounting staff all of whom need to access the accounting software at any given time. The only solution for this is to purchase a desktop version of the accounting software.

5. A number of important features that are included in QuickBooks desktop are not included in cloud version of the accounting software. Some of the features that are standard in QuickBooks desktop but not found in QBO are as follows. 

Batch invoicing and timesheet entry

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Average cost inventory valuation

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Business Planner and calendar

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Available Quantity in Inventory

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Inventory and lead center

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Fixed Asset Manager

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Multiple ships to vendors

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Sales orders and fulfillment worksheet

6. The company files cannot be accessed in case of server downtimes. QBO requires constant internet connection to access the files. Users cannot access the data offline while the internet is disconnected. What's more; a fast internet connection is required especially if multiple users access the software at once. Intuit recommends a constant, broadband internet connection such as DSL, cable modem, or T1 line.

7. QBO contains a limited number of reports and graphs as compared to the desktop version of the accounting software. Moreover, the report customization feature is limited in QBO as compared to QuickBooks desktop.

8. Intuit has taken every possible precaution to prevent unauthorized users from accessing the online data. Still, the possibility still exists that a malicious hacker would break into the system and access confidential company data. This is not the case with QuickBooks desktop as all the data files reside locally on the company's own server.

Overall, QuickBooks online is great accounting software program that can help you to streamline your accounting function and make it more efficient. The functionality and reporting of the cloud version of accounting software are constantly evolving. Intuit is putting in much time and effort in making QuickBooks online more reliable and easy to operate for the users.