In order to understand the difference between QuickBooks Online and Hosted QuickBooks, we need to know 3 versions of QuickBooks.
1. Desktop QuickBooks
2. QuickBooks Online
3. Cloud Hosted QuickBooks
Desktop QuickBooks edition
The QuickBooks desktop edition has many features that help you a lot in bookkeeping & maintaining accounts. Inventory tracking, currency calculator, company overview and much more are functionalities of it. But the desktop edition of the QuickBooks does not help you in accessing applications from anywhere via the internet.
QuickBooks Online Edition (QBOE)
QuickBooks Online Edition or the QBOE is the version developed based on the demands of clients wishing to access several applications via the internet. This helps in accessing services via the internet from anywhere. But QBOE has its own drawbacks too. What exactly? Let us put some light on the same in this article.
Restrictions of QBOE
• QuickBooks restrict you from enjoying certain functionalities that you were able to get through the desktop QuickBooks software. The functionalities unavailable in the QBOE are:
1. Inventory tracking – Inventory tracking is available in the desktop QuickBooks edition but the online edition does not help you in tracking inventories.
2. Purchase orders – Purchase orders functionality is taken away in the online edition.
3. Company overview – Company overview cannot be perceived via the online edition of the QuickBooks.
4. Currency calculator – Currency calculator which made calculating an easy task in the desktop edition is not available in the QuickBooks Online Edition.
• QuickBooks Online Edition becomes too expensive if the users of it have too many clients. How? Charges are applied based on the number of files to be maintained. Hence it does not suit people who have too many clients and in turn, too many files to be managed.
So what is the alternative that helps in enjoying the full functionality you enjoyed in a desktop version of QuickBooks and also the accessibility via the internet that you enjoy through QBOE? The answer is QuickBooks Cloud Hosting!
QuickBooks Cloud Hosting
QuickBooks Cloud Hosting contains the best features of both worlds – the desktop version of QuickBooks and the QBOE. Functionality-wise it is as strong as the desktop version and convenience-wise it is as strong as the Online Edition. Yes! It is the true package becoming the solution for all your concerns.
What is required for QuickBooks Cloud Hosting?
A hosting provider is the main requirement of QuickBooks Hosting. The hosting providers install the desktop version of QuickBooks not on your side but on their server. This helps you in accessing the QuickBooks software from devices on your side – that too from anywhere via the internet. The Secure Socket Layer technology or the SSL technology makes sure that the confidentiality of the data transmitted is not compromised. 128-bit encryption is used for ensuring the safety of the data.
Cloud-based technology is used which has qualities like the security of data & ease of use. An additional safety measure is also taken – all files that you transfer are backed up without any flaws! Cloud technology is the state of the art technology used by everyone now a day and this helps in increasing the compatibility and accessibility ratio too.
Differences between QuickBooks Online edition and the cloud Hosted QuickBooks
Let us make the differences between QBOE and Cloud Hosted QuickBooks clearer by bringing them to certain points given below.
1. QuickBooks Cloud Hosting supports more functionalities than the QuickBooks Online Edition – All functionalities of QuickBooks desktop version are available in QuickBooks Cloud Hosting but not in QuickBooks Online Edition.
2. QuickBooks Online Edition is not as cost-effective as QuickBooks Cloud Hosting for users who have many clients – QuickBooks Online Edition charges per file and the same makes it expensive for users having many clients. The reason is that too many files are needed to be maintained to manage many clients and in turn, QBOE becomes highly expensive as charges are applied to each file. On the other hand, such kind of charges is not applicable to Hosted QuickBooks edition user and hence it is more cost-effective. You can also go for additional space by paying a little more in the Cloud Hosting version of QuickBooks.