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QuickBooks Online Edition
Bookkeepers and accountants who serve small service business clients and simple bookkeeping/accounting needs may consider using QuickBooks Online Basic or Online Plus. The internet-based accounting programs run on Intuit's web servers and can be accessed from any location that has an internet connection and a web browser. However, QuickBooks Online Basic and Online Plus are not the same programs as the QuickBooks desktop edition software such as QuickBooks Simple Start, Pro, Premier, and Enterprise. The Online programs offer different features and capabilities. Thus, some clients may find the programs more appealing than others.
Advantages of QuickBooks Online
QuickBooks Online Basic and Online Plus offer several advantages over the traditional desktop editions as follows:
- The software is easy to set up. Companies can subscribe to the service by completing an online interview that takes approximately 10 minutes.
- While data cannot be imported from or exported to the desktop-based version of QuickBooks (or other formats) into QuickBooks Online Basic, users switching from QuickBooks desktop to QuickBooks Online Plus may convert the file. Since many of the QuickBooks desktop features are not available in QuickBooks Online, all the data may not be converted or it may be converted into another format. If the company decides to cancel QuickBooks Online Plus, they can export their data back to QuickBooks software. However, it is important to note that their data may not convert back to the desktop version intact.
- Users need nothing more than an internet connection and a web browser to access the service. Because QuickBooks Online is hosted and managed by Intuit on its servers, users do not need special internal information technology resources.
- Users can access the service from anywhere and at any time. Users also can grant access to bookkeepers, accountants or trusted employees at remote locations. (The monthly subscription fee to QuickBooks Online Plus is based on the number of users. Each time a user logs into the company's file, an entry is added to the Access Log, which describes who logged into the system and what he or she did.)
- Online Basic allows access to one user and a bookkeeper or accountant. Online Plus allows access to three users and a bookkeeper or accountant. Up to 25 users can be added for an additional cost.
- Users enter data directly into the accounting system, thus eliminating the delays and inaccuracies caused by sending data back to the client for entry.
- Users do not have to be concerned with upgrades or system backups. Because the software resides on Intuit's servers, it is always the latest version available. Also, Intuit's server files are backed up daily, and the backups are moved to a remote location. Thus, client data is safeguarded in the event of a fire or other disaster.
- Intuit has implemented several measures to ensure the security of client data. Passwords must be used to gain access to client data, and data transmitted over the internet is encrypted using 128-bit encryption and Secure Socket Layer (SSL) technology. In addition, QuickBooks Online is a VeriSign Securedâ„¢ product. VeriSign® is the leading SSL Certificate Authority.
Public bookkeepers/accountants may benefit from a client's use of QuickBooks Online Plus, as well. The service can help bookkeepers/accountants perform bookkeeping or write-up work "on demand" since the client's information can be accessed at any time and from any location. The traditional process of transferring files back and forth while making sure both the client and the bookkeeper or accountant are using the same software release is replaced with "real time, anytime" involvement. That can better suit the schedules of both the bookkeeper/accountant and client. Furthermore, because the bookkeeper/accountant will be relieved of some of the manual operations required in performing traditional bookkeeping/write-up services, some bookkeepers/accountants believe the use of online bookkeeping/accounting services such as QuickBooks Online Plus will make them more efficient and better able to fulfill a more value-added advisory role to their clients. Bookkeepers/accountants can access their clients' QuickBooks Online Plus files for free.
Disadvantages of QuickBooks Online
Of course, QuickBooks Online is not for everybody. There are several drawbacks or risks to using the service, many of which are inherent to any online bookkeeping/accounting software program.
For example:
- Many of the features available in QuickBooks are not available in QuickBooks Online. QuickBooks Online currently does not provide purchase orders or inventory tracking. Reports and graphs are available, but not as many as in QuickBooks desktop-based. Report customization also is somewhat limited in QuickBooks Online.
- Heavy internet traffic may slow down service response time, and servers may be down, preventing access to company data. (However, Intuit tries to notify users in advance for scheduled maintenance downtime. Also, Intuit's servers are connected to backup generators to protect against power failures.)
- Company data cannot be accessed if the user's internet connection is down.
- Users may not have fast enough internet connections to efficiently use the service for their basic accounting system. (Intuit recommends a persistent, high-speed internet connection such as DSL, a cable modem, or T1 line.)
- While every reasonable precaution has been taken to protect the privacy of company data, there is always the possibility that a malicious hacker could break through Intuit's security configuration and access accounting data.
Who Should Consider Using QuickBooks Online?
Because it lacks many of the features of QuickBooks, QuickBooks Online works best for service companies with relatively simple bookkeeping/accounting needs (i.e., those who do not need estimates, online bill payment, or inventory tracking). Even then, those companies may not see significant benefits from the software unless they wish to give bookkeepers/accountants or employees in remote locations access to their bookkeeping/accounting records (Online Plus only). Generally, users who want a more full-featured bookkeeping/accounting program to create estimates, perform job costing, track inventory and purchase orders, or integrate with Microsoft Word and Outlook should use QuickBooks rather than QuickBooks Online.
Those who are unsure about using QuickBooks Online can try the software for free for 30 days. During the free-trial period, users can view a sample company, try various features, and change and view reports. Alternatively, users can enter their own company information and begin using QuickBooks Online.
QuickBooks Online Basic and Online Plus are accessed through Intuit's QuickBooks website at http://quickbooksonline.intuit.com.
QuickBooks Hosting
As mentioned above, bookkeepers/accountants who serve clients with small-service businesses and simple bookkeeping/accounting needs may consider using QuickBooks Online Basic or Online Plus. However, QuickBooks generally is designed for use by small businesses with annual revenues up to $2 million and 20 employees. Therefore, many small businesses are more suited for QuickBooks desktop edition software as opposed to QuickBooks Online. But, the key advantages of QuickBooks Online are very attractive to many QuickBooks users and that is the reason for QuickBooks hosting services, such as that provided by Smith & Young, Certified Public Bookkeepers.
QuickBooks hosting provides QuickBooks users access to their QuickBooks software with the key advantages of QuickBooks Online and eliminates the key disadvantages. QuickBooks hosting provides users access to their QuickBooks desktop edition software with a local desktop interface or view. The user's QuickBooks desktop edition is installed and runs on a third party terminal server and the user views a virtual copy and accesses their QuickBooks data files just as they would access their data files on their local desktop.
Advantages of QuickBooks Hosting
QuickBooks hosting offers the following advantages:
- Users need nothing more than an internet and a terminal server connection such as Microsoft Remote Desktop Connection or RDC (formerly known as Microsoft Terminal Service Client) to access their QuickBooks desktop edition software and data files.
- Users can access their QuickBooks and data files service from anywhere and at anytime. Users can also grant access to bookkeepers, accountants or trusted employees at remote locations. (Smith & Young QuickBooks hosting service's monthly subscription fee is based on the number of users. The standard subscription fee includes two user logins.)
- Smith & Young's standard QuickBooks hosting service allows access to one user and a bookkeeper/accountant. Additional user login access is available.
- Users enter data directly into QuickBooks, thus eliminating the delays and inaccuracies caused by sending data back to the client for entry.
- Smith & Young QuickBooks hosting users do not have to be concerned with upgrades or system backups. Because the QuickBooks software resides on Smith & Young's terminal servers and the software is always updated with the latest version available. Also, Smith & Young performs daily backups of the QuickBooks data files, and the backups are moved to a remote location. Thus, client data is safeguarded in the event of a fire or other disaster.
- Smith & Young's QuickBooks hosting service has implemented several measures to ensure the security of client data. Passwords must be used to gain access to client data, and data transmitted over the internet may be encrypted using 128-bit encryption and Secure Socket Layer (SSL) technology.
- All of the features available in the QuickBooks desktop editions are available in QuickBooks hosting. All reports and graphs are available and report customization is not limited.
Those who are unsure about using QuickBooks hosting services can try Smith & Young's hosting service for free for 30 days. During the free-trial period, users can view a sample company, try various features, and change and view reports. Alternatively, users can enter their own company information and begin using QuickBooks hosting.
For more information on Smith & Young QuickBooks hosting services, go to www.smithyoungcpbs.com/purchase/quickbooks/hosting.cfm.
Note: NACPB members receive a 25% discount on Smith & Young QuickBooks hosting services. |
