As a result of the popularity of QuickBooks, Intuit announced that the 2020 version(s) of QuickBooks Desktop (QBD) will be discontinued on May 31st, 2023. In light of the platform's popularity, this announcement has raised many questions. What does this mean? Is QuickBooks Desktop being discontinued? If you’re using QuickBooks Desktop, what options are available to you? What are the differences between QuickBooks Online and Desktop?
Come on, let's dig in, and we'll get to it quickly.
Discontinuation of QuickBooks Desktop
Although “QuickBooks Desktop 2021 Discontinued” may be an accurate title, it does not tell the entire story. Rather than completely shutting down, the 2020 version of QuickBooks Desktop will be sunsetting. While QBD will remain available for current owners, it will not receive any further updates or support. In addition, QBD users will no longer be able to use any add-ons, including the popular payroll add-ons. Many users have wondered if QuickBooks Desktop was going away.
Does QuickBooks Desktop plan to be phased out?
No, in a nutshell.
While QBD 2020 is sunsetting, there are other, more modern versions of QuickBooks Desktop. QuickBooks Desktop 2023 was released in September 2022, and although Intuit does not actively promote this edition (which means you will have to contact their sales team), QDB 2023 will continue to receive support for years to come.
Consider these factors before making any decisions if you're a current user of QBD 2020.
Unlike the 2020 edition, which is a "one-time purchase" application, Intuit offers QBD 2023 as a subscription-based service. This is the first time a subscription model has been introduced; QuickBooks slowly replaced its one-time-priced applications with subscription models for years.
Second, QBD 2023 is significantly more expensive than QuickBooks Online (QBO). QBD 2023 edition costs $549 yearly, whereas QBO plans start at $180. You will also have to pay a lot more if you wish to add users to the desktop version. I think Intuit is really trying to convince users to switch over to the online version.
What's the difference between QuickBooks Online and QuickBooks Desktop?
Here's a quick explanation of the differences between QBO and QBD.
Users access QuickBooks Online through a web browser or application, rather than using an on-board application. This requires an internet connection, but you can access it wherever there is one.
As a local application, QuickBooks Desktop can only be accessed using the computer you installed it on. Additional computers can be installed to increase access points, but additional fees apply.
According to Inuit's annual report on user numbers, QuickBooks Desktop users decreased from 2.1 million to 1.5 million in 2021, while QuickBooks Online users increased from 4.5 million to 5.8 million.
While both services have similar features, some are exclusive to specific versions. Here are the main differences between the two services.
In addition to offering sales orders, QBD also offers 50 more report types than QBO, as well as industry-specific reports and other industry-specific features.
However, only QBO works on Macs. The cloud-based format of QBO also allows it to offer (optional) live bookkeeping support, as well as (optional) automatic invoicing. While QBD doesn't have as many reports, it has more integrations and offers automatic invoicing. At the time of writing, only QBO provides international invoicing.
