QuickBooks Desktop vs. Online: Which Is Best for Construction?

Almost 12% of QuickBooks customers come from the construction industry, making it the third-largest segment of its users after computer software and health care. 

If you’re a contractor, you’re most likely gravitating toward QuickBooks to meet your business’ accounting needs. But one question remains: Which QuickBooks product is the right fit for you–QuickBooks Desktop or QuickBooks Online?

This guide breaks down the main differences, features, pros, and cons of QuickBooks Desktop and QuickBooks Online to help you decide which version best suits your construction business.

Quick Comparison: QuickBooks Desktop vs. QuickBooks Online

QuickBooks Desktop vs. Online: Key Differences

1. Accessibility and Setup

• QuickBooks Desktop requires installation on a local computer and includes robust security measures, but you’re responsible for data backups and system maintenance.
• QuickBooks Online is fully cloud-based, allowing you to access your financial data anywhere with an internet connection. Automatic updates and cloud backups come standard, making it ideal for remote access.

Pro Tip

QuickBooks Online’s mobile app is significantly more functional than its desktop counterpart, which is limited to basic tasks like receipt uploads.

2. Reporting and Job Costing

For construction businesses, reporting capabilities and job costing are essential. While both versions offer core features, QuickBooks Desktop stands out with more detailed job costing reports and customization options, such as:

• Estimate vs. Actual Report: Compares project estimates with actual costs to help construction managers assess bid accuracy and control project spending.
• Detailed Job Cost Report: Breaks down job expenses, including labor and materials, providing insight into spending and profitability for informed decision-making.
• Work in Progress (WIP) Report: Tracks incomplete projects by showing progress and incurred costs, aiding in revenue recognition and cash flow management for ongoing projects.

QuickBooks Online lacks some of these specific reports but compensates with a visual project dashboard for quick profit margin insights.

Pro Insight

QuickBooks Desktop’s ability to generate industry-specific reports makes it ideal for construction companies handling complex projects.

3. Pricing and Scalability

• QuickBooks Desktop is priced annually, starting at $549. It’s suitable for businesses needing advanced, industry-specific features.
• QuickBooks Online is more affordable at $15 to $100 per month and scales well with growing businesses due to its four-plan options.

Pros and Cons at a Glance

QuickBooks Desktop

QuickBooks Online

Key Features for Construction Businesses

1. Invoicing

Both QuickBooks Desktop and QuickBooks Online offer robust invoicing capabilities, allowing construction businesses to track partial payments and update projects automatically. However, there are significant differences in how each version handles invoicing for complex or changing projects.

QuickBooks Desktop provides greater flexibility when managing sub-projects and making adjustments as project needs evolve. For instance, it allows users to create sub-projects and link them seamlessly to the main project, making it easier to track detailed changes over time. 

QuickBooks Online, on the other hand, supports partial payment tracking but is more limited when it comes to handling dynamic project changes. Sub-projects and detailed invoice modifications often require manual adjustments or workarounds, increasing the risk of errors and oversight. 

For businesses that prioritize flexibility and detailed tracking in their invoicing processes, QuickBooks Desktop is a more effective tool. Meanwhile, QuickBooks Online remains a strong contender for those looking for basic, straightforward invoicing with the convenience of cloud access.

2. Integrations

• QuickBooks Online leads in integration options, supporting apps like CRMs and time-tracking tools such as Workyard.
• QuickBooks Desktop integrates with fewer apps, mainly focused on common business tools.

Did You Know?

Integrating QuickBooks with Workyard allows real-time tracking of labor costs, helping construction companies stay on budget and improve payroll accuracy.

Expanded Features Comparison

When to Choose Desktop vs. Online

1. When to Choose QuickBooks Desktop

QuickBooks Desktop is best for construction businesses and industries needing:

• Advanced job costing and detailed tracking by job phase or vendor.
• Comprehensive, industry-specific reports, such as Estimate vs. Actual, Work in Progress (WIP), and Detailed Job Cost Reports.
• Flexibility for mid-project changes to invoices, estimates, and job costs.
• Offline functionality for data security and control without internet reliance.
• Dedicated IT resources for installation and maintenance.

Why Choose Desktop? It’s ideal for complex projects that require precise financial management and detailed, customizable reporting.

2. When to Choose QuickBooks Online

QuickBooks Online is the right choice for businesses that value:

• Cloud-based access for working from anywhere with an internet connection.
• A robust mobile app for on-the-go project management.
• Easy integration with third-party apps like CRMs and project management tools.
• A user-friendly interface that reduces the learning curve.

Why Choose Online? It’s perfect for teams needing mobility, real-time collaboration, and seamless tool integration.

How to Transition from QuickBooks Desktop to Online

Switching from QuickBooks Desktop to Online can be seamless if planned well. Here’s a brief guide:

• Backup Your Data: Ensure you have a complete backup of your QuickBooks Desktop data before beginning the transition.
• Use Intuit’s Conversion Tool: Follow Intuit’s step-by-step guide for transferring data to QuickBooks Online.
• Check Data Accuracy: Verify that all information has migrated correctly, including job costing details and reports.

Quick Tip

Contact Intuit support if you encounter issues during migration to get real-time assistance.

Mobile Use: Which Version Offers the Best Experience?

If your team frequently works on-site or remotely, QuickBooks Online is the winner. Its mobile app is designed to let you manage projects, send invoices, and monitor financials on the go, unlike the limited mobile capabilities of QuickBooks Desktop.

Is QuickBooks Desktop Being Phased Out?

While Intuit’s focus is shifting toward cloud solutions like QuickBooks Online, QuickBooks Desktop remains fully supported and continues to be a reliable choice for many businesses. This is particularly true for industries such as construction, which rely heavily on the advanced reporting and job costing features that the Desktop version offers.

Although there is an industry trend toward cloud-based tools for their convenience and accessibility, Intuit has not announced any plans to discontinue the Desktop version. This means that businesses depending on these robust, industry-specific features can continue to use it without immediate concern.

However, it’s wise for users to stay informed about future updates from Intuit, as the long-term trajectory may lean more heavily toward online solutions. For now, if your business benefits from QuickBooks Desktop’s detailed reports, customizable job costing, and offline functionality, it remains a valuable and viable option.

Explore More Tools and Resources for Your Construction Business

When deciding between QuickBooks Desktop and Online for your construction business, it’s valuable to consider other tools that can enhance your operations. 

For effective project and resource management, review our Insightful Review to compare industry solutions.

Detailed cost tracking can be improved by implementing specialized job costing software. For better project oversight, check out our Autodesk Build Review.

To facilitate remote task management and on-site collaboration, Workmax offers insights into features that support field teams. If managing detailed project completions is a priority, using punch list software can help maintain high-quality standards. 

For enhanced legal compliance in different states, it’s wise to stay informed with guides on Texas labor laws and Massachusetts labor laws.

These resources provide a foundation for informed decisions that boost the efficiency and compliance of your construction business.

The Final Verdict

The final choice between QuickBooks Desktop and Online comes down to your business’s specific needs. 

QuickBooks Desktop is the best option for companies requiring detailed reporting and advanced job costing. On the other hand, QuickBooks Online is an excellent, flexible choice for smaller to medium-sized construction businesses looking for ease of use and mobile capabilities.

Need to streamline your time tracking and payroll? Integrate QuickBooks with Workyard for precise labor tracking and reduced payroll waste. Sign up for a free trial today.