I highly recommend using QuickBooks for your private practice bookkeeping because it makes your life so much easier, and your bookkeeping beautiful! But, one of the decisions you need to make is whether you want the Desktop or Online version of QuickBooks.

The main difference is that QuickBooks Online is cloud-based and you can access it from anywhere, while QuickBooks Desktop is installed onto a computer and can only be accessed from that computer.

I know, I know it sounds technical. But there are other differences between them that you need to think about before choosing what’s the best fit for you and your private practice. But I’m breaking it down to help you out!

Here’s what you need to know:

Price

The pricing structures are different because QuickBooks Desktop is done on licensing and a yearly subscription. While QuickBooks Online is done on a monthly subscription, you can pay for QuickBooks Online as an annual subscription fee as well to save some money!

QuickBooks Online

Starts at about $20 per month depending on your plan (without payroll)

QuickBooks Desktop

Starts at about $299.95 paid yearly for one user (without payroll)

Features

Both options share the basic accounting functionality, but the overall features of each, are very different and play an important role in which you decide to use for your private practice:

QuickBooks Online

• Access from anywhere and any device (hello sofa bookkeeping!) 
• A lot of automation to make your life easier
• Monthly pricing; so less of a price commitment
• No software updates or back-up’s
• Easily share online access with multiple users
• Let’s be honest – it’s the 21st century – online is just more modern!

QuickBooks Desktop 

• Access only from where it’s downloaded
• Lead management and sales orders included
• Can use it when you’re offline
• Important to always make back-ups of your data
• Not easily shareable with others like bookkeeper or CPA to give them access to data
• Have to update the software each year

QuickBooks for Therapists: Which should you get?

I will always recommend QuickBooks Online versus QuickBooks Desktop for all my therapists and private practice owners.

Why though? In full transparency, like I mentioned above – it’s the 21st century… cloud and online is just the way things ‘happen’ now. More specifically, though, QuickBooks Online is so much more versatile than Desktop, and it works perfectly for all of TBK’s clients (so therapists and private practice owners).

With online, you’re not tied to just that home computer desk to do your books. You can access it from any device. This also means you have more flexibility with your bookkeeper and tax professional. With online, you simply invite them via email to look at your books. And that means they can instantly access your books from their own devices/office, etc. With Desktop, they have to physically come to your computer, or you have to create and download a backup of the Desktop files, send them the file, make sure they can access the file, etc, etc.

Or you can setup and pay for a software for them to ‘remote in’ and view your computer. It’s cumbersome, to say the least. With Desktop, there is also a lot more manual data entry versus being able to sync accounts and have it automatically pull the data in from those accounts so you can get to work immediately on the data entry.

And lastly, the big one for me, I absolutely LOVE knowing my financials and data are backed up into the cloud.. because if my office burns down, gets broken into, or my computer crashes…. I don’t lose years and years of data and pertinent information!

If you’d rather not even deal with the headache of choosing and setting the software up or managing your bookkeeping, we at Therapeutic Bookkeeping can do all of those things for you! Therapeutic Bookkeeping is a virtual accounting firm working exclusively with therapists all across the United States!

Also, if you’re not quite ready for a full blown accounting software, a spreadsheet can work great, too! I created one specifically for therapists in private practice and you can find it in The Bookkeeping Cure™️ for Therapists!