Cloud-based Quickbooks (“QBO”) has made great strides in the past few years. Desktop Quickbooks (“QB”) was the top choice for many small businesses for years before QBO came into existence. QB was easy to use, cost effective and provided superior reports. However, the problem with QB was the clumsiness that came with file sharing. The QBA version (the QB version which allowed the business to move forward while the accountant worked on year-end) solved this problem, but still had its limitations.
QBO, on the other hand, has empowered three main stakeholders – the business owner, the bookkeeper, and the external accountant. With QBO, a bookkeeper can update the accounting file more frequently and with minimum physical limitations. This ultimately leads to timelier financial reporting at fewer costs for business owners.
However, before business owners make the leap to QBO, there are pros and cons to take into consideration. Business owners need to ensure that the pros will solve the existing drawbacks of QB and that the cons are manageable. If a jump to QBO is a mistake, the conversion back to QB is not simple and economical.
QBO, as it stands today, is adequate for simple businesses where robust reporting is not critical or mandatory. Although navigation, inputting, and reporting functions can be more time consuming under QBO, the extra costs are usually offset by the pros of QBO.
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