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Hosted QuickBooks Desktop vs. Local QuickBooks Desktop: Which Is Better?

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Hosted QuickBooks Desktop vs. local QuickBooks Desktop, is a debate that has been going on for quite some time, and for good reasons. While QuickBooks is one of the most reliable software programs for all accounting-related tasks, there are a few restrictions with it. The most common of these restrictions is being unable to access the software remotely. Although such restrictions are lifted by hosting the software on cloud servers, the process of doing so is not exactly a walk in the park. To help you better understand which of the methods is better, we will provide a thorough comparison between the two in this article.

Hosted QuickBooks Desktop vs. Local QuickBooks Desktop

Features
Hosted QuickBooks Desktop

Local QuickBooks Desktop

Access

Can be accessed remotely due to the cloud-based infrastructure.

Can only be accessed via the local system.

Updates

Automatically installs new updates.

Requires manual installation for updates.

Pricing model

Monthly subscription fee.

Annual subscriptions.

User access

Multiple users can simultaneously access the software.

Requires a proper network setup for multi-user QuickBooks.

Backups

Backups are automatically saved on the cloud.

Requires to create manual backups.

Integration

Third-party applications can be easily installed.

Limited options for installing additional tools.

Data security

Advanced security protocols like encryption and multi-factor authentication.

Local security measures.

Cost structure

Pay-as-you-go pricing model.

One-time purchase with additional cost as per future requirements.

Data control

Data is hosted in the cloud, allowing users to access the data from a remote location.

Data can only be controlled from the local device.

Scalability

Resources can be easily scaled.

Scalability is highly limited.

Forms customization

Extensive forms customization.

Limited template options.

Payroll

Best-in-class payroll features with detailed allocation.

Standard payroll features.

Which One Is Best For You? Hosted QuickBooks Desktop vs. Local QuickBooks Desktop


Hosted QuickBooks Desktop

Local QuickBooks Desktop

Needs to access the software from different locations or devices.

You work primarily from a single location.

You work with remote teams.

Requires to handle complex inventories.

Prefers subscription-based pricing.

Prefers annual purchase.

Need real-time collaboration features.

Require industry-specific features.

You want automatic updates and backups.

You prefer maximum control over your data.

Choose The Right QuickBooks Solution For Your Business

Many businesses often find it difficult to come to a conclusion in the debate of Hosted QuickBooks Desktop vs. local QuickBooks Desktop. While both methods provide the QB software, they are significantly different from one another. Due to this, the end choice depends completely on your requirements. If you want to access the software remotely with your remote teams, then Hosted QB Desktop is the right choice. However, if you only work from a single location and require industry-specific features, then local QB Desktop is the way to go.

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FAQ

What is QuickBooks Desktop hosting?

QuickBooks Desktop hosting means hosting the entire software on cloud servers to remotely access QuickBooks, all the while allowing multi-user access.

Is the data safe on Hosted QuickBooks Desktop?

Yes, the data remains safe and secure in Hosted QuickBooks Desktop due to the enterprise-grade security protocols, like encryption, firewalls, intrusion detection, and multi-factor authentication.

Can QuickBooks do payroll?

Yes, QuickBooks can do payroll as it offers a comprehensive, built-in service for this specific task. Moreover, it also allows you to automate tasks, like tax payments, filing, and payroll calculation.

Can I run QuickBooks on a server?

Yes, you can run the QuickBooks software on a remote server. However, you will first need to install the QuickBooks Database Manager to share the files with other computers over your network.

Can I store a local backup copy of the QuickBooks data?

Yes, you can store a local backup copy of the QuickBooks data on your desktop. However, making edits in the local save file may cause inconsistency with the ones already saved on the server. In order to avoid this, you can change the file name and its path.

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