Have you gotten a notice that QuickBooks is no longer going to support your 2020 desktop application? Don’t panic. You can continue working on a desktop version of the software if you are not yet ready to move to QuickBooks Online. However, this may not be the case forever, so it might be time to consider making the move.
As software technology continues to advance, providers face the challenge of keeping up with evolving systems. QuickBooks Desktop announced a few years ago that it will end support for each version every three years, signifying a shift in their approach to software maintenance. Instead of providing long-term support for a particular version, the focus is now on encouraging users to upgrade every three years to align with evolving technology standards and to ensure they have access to the latest features, security enhancements, and bug fixes.
This basically means if you are currently using the 2020 version, you will soon be on your own if anything goes wrong and many of your integrations may no longer work. Your choices are to transition to QuickBooks Online or upgrade to a newer version of QuickBooks Desktop.
Differences Between QuickBooks Desktop and QuickBooks Online
Obviously, QuickBooks is making it more difficult to find and work in their desktop version because they want everyone to eventually switch. We also know that those that love the online version really love using it instead of the cloud-based one. With that in mind, here are a few of the main differences between versions:
- Integrations: Both versions have a variety of integrations to streamline how you work. Some of the most popular ones are with Bill.com, Salesforce, Expensify, and Hubspot. The real difference here is in the quantity of available integrations: Desktop has approximately 250, while Online has more than 650.
- Hosting: QuickBooks Online is cloud-based and can be accessed by anyone from anywhere with an internet connection. QuickBooks Desktop is installed directly onto a computer, but it can be “self-hosted” to allow more than one person to access it, but at an additional cost.
- Longevity: As we mentioned earlier, Desktop versions are retired every three years and at that point, will no longer connect to core add-ons or receive Intuit support. This is not an issue with Online.
- Industry-Specific Versions: QuickBooks Desktop Enterprise offers six industry-specific versions (Contractor, Manufacturing & Wholesale, Retail, Nonprofit, Professional Services and Accounting). While the online version does not have these specific versions, the multitude of integrations allow users to customize it so it covers the needs of businesses across industries.
- Ease of Use: If you already use QuickBooks Desktop, this won’t matter, but there is quite a steep learning curve to become proficient. QuickBooks Online is substantially easier to learn and use.
Upgrading QuickBooks Desktop
If you aren’t quite ready to make the switch, you can move to the latest version of QuickBooks Desktop. Upgrading offers numerous benefits, such as improved functionality, increased stability, enhanced security measures, and compatibility with new operating systems. Here’s how to do it:
- Evaluate your system requirements: Before upgrading, ensure that your computer meets the minimum system requirements for the latest version of QuickBooks Desktop. This includes checking the operating system compatibility and hardware specifications.
- Back up your data: Before initiating any major software upgrade, it is essential to create a backup of all your company files. This ensures that your data remains safe and accessible during the transition process.
- Choose the right version: QuickBooks offers different versions tailored to various business needs. Evaluate the features and functionalities offered by each version and select the one that aligns with your requirements.
- Purchase the new version: Buy the latest version of QuickBooks Desktop either through the official Intuit website or authorized resellers and be sure to acquire the appropriate licensing for your business. The cost depends on various factors, including the version you are upgrading from, the edition you choose, and any promotional offers available. (They are currently running a special offering 70% off for the first three months of QuickBooks online if you make the switch.) The starting price for the desktop version is $549 per year, while online version starts at $30 per month.
- Install and transfer data: Install the new version of QuickBooks Desktop and follow the instructions provided to transfer your existing company files. Take note of any changes or updates to the software during the installation process.
- Verify and reconcile data: After the upgrade, carefully review your data to ensure all information has been successfully migrated. Reconcile any discrepancies that may have occurred during the transition.
Managing Payroll with QuickBooks Desktop
For businesses that rely on QuickBooks Desktop for payroll management, the transition during the upgrade process can be critical. It is essential to take the following steps to ensure a smooth transition:
- Check payroll service compatibility: Before upgrading, verify that your current payroll service is compatible with the new version of QuickBooks Desktop. If not, explore alternative payroll service options offered by Intuit.
- Research payroll add-ons: QuickBooks Desktop offers various payroll add-ons that can simplify and streamline payroll management processes. Explore these options to find the one that best meets your business requirements.
- Seek assistance from experts: If you encounter challenges during the upgrade process or have questions related to managing payroll with QuickBooks Desktop, reach out to Intuit’s customer support or consult with certified QuickBooks professionals for guidance.
It is ultimately up to you which option fits your needs and business best. If you have an internal IT person or external managed service provider, you may want to ask for their input and assistance prior to – and during – an upgrade. And if you run into issues, you can reach out to us for assistance too.