It is a debate we had ourselves recently for our real estate business. Others are having this debate too. Intuit reported that 2 years ago, only 38% of small business owners used cloud-based services such as QuickBooks Online. Now, that number has grown to over 65%.
I had the opportunity to sit down with Oneida Franco, founder of Franco Blueprint, to discuss this hot topic. You can find the video here. Oneida is experienced with working with real estate related companies and moving them from QuickBooks Desktop to QuickBooks Online. She has offered some reasons why business owners, including those who own real estate, should consider a move to QuickBooks online.
High-Level Overview of the Advantages of Using QuickBooks Online
Many advantages exist for those making the transition to QuickBooks Online, including:
- Access anywhere and everywhere there is an internet connection since the system is cloud-based. This means you are able to log in and work or send invoices wherever you are.
- No need to purchase upgraded versions of the product.
- Can have 5 concurrent users in the same account. QuickBooks Desktop allows only one.
- Connection to over 300 apps through the QuickBooks App Store, including TSheets, PayPal, Square, and many others.
- Easy access for your accountant so they can log in and help where you need assistance.
While those are fairly compelling reasons to switch, for many, the decision is based on the economics. Does it really make financial sense to switch and learn a new system?
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Financial Advantages of QuickBooks Online
From our perspective, the cost factor was a huge consideration. With the desktop version, you buy it once and you can use it for multiple years across as many accounts as you like. With the online version, that is not the case. Every account is another charge.
Savings associated with using QuickBooks online:
- Free connection to financial institutions. Many financial institutions charge a monthly fee of $10 or more.
- Users in the United States have access to free support. Desktop users pay $299 per year.
- No need for the annual upgrade cost of over $200 each time you do the upgrade
- Backup is free! An often overlooked area for Desktop users, many users aren’t actually taking this important step. If you are using this service through Intuit for your QuickBooks Desktop, the cost would be $10 per month for back-up.
For multi-company users, however, the economics may not appear to make sense. But, the story is not as black and white as that. If you are a multi-company QuickBooks Online user, there is currently a special you can access through your ProAdvisor. As a multi-company user, the main company would be charged the Plus price at $60/mo. Then, each additional company is charged $5/month for the next 5 years.
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Productivity Advantages of QuickBooks Online
But even more importantly, there are the time-savings or efficiency gains with QuickBooks Online. These savings come from a variety of fronts that need to be evaluated and considered:
- When we need our accountant’s help, there is no need to create an accountant copy and send it over. You simply give access to your accountant and they have immediate access to log into your account and help.
- Nightly downloading of your bank, credit union and credit card transactions rather than manual downloading.
- No downtime for system upgrades as system improvements are pushed out on a regular basis through the cloud for all users, including new system enhancements.
- You can attach documents and images directly from your smartphone, eliminating steps and delays.
- Ability to automate invoicing and other transactions.
- Integrated merchant account which allows for faster payment
- Reconciliation is a breeze now because you can automate any transaction including invoicing by setting up a “recurring transaction” for your particular client or vendor. QuickBooks Online lets you include other, unbilled charges, which the desktop version does not, and it will send an alert for a Scheduled Transaction.
- Built-in back up so no time spent backing up data or recovering data when files are corrupted or lost.
Wrapping It Up
All told, these efficiencies add up to considerable time-savings for our business each and every month. Plus, because of the ease of updating our accounts, we take the time to do it and get it done so we have better control over our finances. Everyday Advances are being made every day making QuickBooks Online as robust as QuickBooks Desktop.
In conclusion, we hope this helps you evaluate if it makes sense for your business to switch from QuickBooks Desktop to QuickBooks Online.
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Latest posts by Jeri Frank (see all)
- 5 Reasons to Use Asset Management Analytics with your Real Estate Portfolio - December 18, 2018
- Advantages of Moving your Real Estate Business to QuickBooks Online - December 4, 2018
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Also published on Medium.