The bottom line is, QuickBooks online makes your life a heck of a lot easier, and if you are working with an accountant, it makes your accounting relationship with them much better.
There are many reasons why you should switch to QuickBooks Online, but let’s start with some history.
1st Cloud Computing Milestone
In 1999, technology giant Salesforce pioneered the concept of delivering enterprise applications through a website. They started the trend of what is known now as SaaS or Software as a Service.
Two things were discovered
- Software products provided via the internet, or SaaS products, created an overall better experience for the end user.
- The SaaS model provided better opportunities for tech companies to monetize their software products
Once these two factors became credible and vetted, the “Cloud” style of computing took off. The concept of technology operating in the cloud ultimately benefits everyone, the buyer and the seller. This is why there has been such a huge wave or switch to cloud computing software.
If the cloud is so great, why do so many people still use “QuickBooks Desktop Versions”
If it isn’t broke don’t fix it
The accounting industry is a lot like a large store like Wal-Mart during the end of the 4th QTR. At the end of the 4th QTR Wal-Mart, or anyone else for that matter, does not want to upgrade their computers Operating Systems. The reason why is because when you upgrade your Operating System you will most likely have other dependent programs that help run your business that could be negatively affected. Because of this, many businesses will maintain older technology for the holiday season and wait to upgrade later.
Accounting is similar to this scenario, but at a larger scale. The issue is two fold:
- Many accounting firms are very traditional and are run by very traditional individuals who do not like change.
- Accounting deals with money,. When it comes to money, if you have a system working you don’t change it.
So let’s talk about number 1: Can’t teach an old dog new tricks
This term isn’t necessarily true, but in regards to the accounting industry it is more true than not..
We use a term called “Traditional Accounting” in reference to many accounting firms today. We say this because many accounting firms exhibit these traits…
- They are still using paper for everything and will not go paperless.
- They continue to use the same software they have always used
- The traditional accounting firm model is meant to benefit the “Partner” more so than the client
- They focus on TAX season, though we all know that tax season for the client is only one day out of the year
Number 2: Money is sacred, don’t touch it.
Granted this one has its merits, money is sacred and you should be very selective on who touches it. That being said, just because something is “technology” doesn’t mean it’s bad. As long as due diligence, proper vetting and verification has been conducted on software that touches your money, you will be fine.
I am going to make a bold statement and a testy conclusion.
Cloud technology was created for the benefit of “you” the user.
Since 1999 it has been proven that cloud technology is beneficial for both the user and the provider.
If you’re accountant is still using QuickBooks Desktop and is not encouraging you to move to QuickBook Online -> Then your accountant is part of that category whose business model is meant to benefit the “Partner” and not the client.
The bottom line is, QuickBooks online makes your life a heck of alot easier, and if you are working with an accountant, it makes your accounting relationship with them much better.
Some Basic Facts
1. Software versions
With QuickBooks Desktop, it is a pain to use with an accountant if the two of you have two different year Desktop Versions. Let’s put it this way, the files going back and forth from accountant to “you” always tend to mess up in some way.
2. Cost Difference
QuickBooks Desktop Version is a one time fee
QuickBooks Online is a monthly fee
* Caveat: With QuickBooks Desktop, you get what you get. With QuickBooks online, it is continually updating and you will be able to utilize the newest features when they are released.
3. Data Storage
With QuickBooks Desktop, the Data is stored locally on “your” computer, which is very risky.
This is one of the major advantages of QuickBooks Online because your data is stored on a secure cloud storage that is continually backup and that can be accessed by you and your accountant anywhere at anytime.
4. Mac, Windows, Linux… It doesn’t matter
With QuickBooks online it doesn’t matter what Operating System you are using.
This is one is a major deal maker for me because I use all Apple Computers. It is always a bit frustrating when someone makes a product for both Windows and Mac but the Mac version always has less features and functionality. Not in this case, QuickBooks Online is Operating System Agnostic and Accountants (should) really like it.
5. No More Software Installation issues with QuickBooks Online
6. Free Technical Support
7. QuickBooks Online Pro Advisors
Here is a good video that Intuit made that simply explains QuickBooks Online
Don’t just take my word for it, Intuit makes both QuickBooks Online and Desktop so here’s what they have to say about it:
This publication is designed to provide information of federal tax and accounting laws and/or regulations. It is presented with the understanding that the author is not rendering legal or accounting services.
This text is not intended to address every situation that arises or provide specific, strategic tax and/or accounting planning advice. This text should not be used solely to answer tax and/or accounting questions and you should consult additional sources of information, as needed, to determine the solution to tax and/or accounting questions.
This text has been prepared with due diligence. However, the possibility of mechanical or human error does exist and the author accepts no responsibility or liability regarding this material and its use. This text is not intended or written by the practitioner to be used and cannot be used by a taxpayer or tax return preparer, for the purpose of avoiding penalties that may be imposed.