Is QuickBooks financial accounting best for the ranch?

As QuickBooks evolved, what started as two primary desktop versions expanded into multiple platforms, including cloud-based QuickBooks Online, which functions more like an iPhone/Android app than a computer program. This version quickly became popular due to its versatility and a substantial push from QuickBooks’ parent company to convert desktop users to the online platform. This popularity led to requests from local producers that extension economists teach QuickBooks Online classes, which we launched in 2024. We also developed two remote learning courses to reach a larger audience base. QuickBooks Online is similar to and different from QuickBooks Desktop. This article discusses the advantages and disadvantages between the two platforms and will hopefully help cattle operators decide if either version is a good fit for their business.

QuickBooks Desktop versus Online

Both QuickBooks Desktop and QuickBooks Online are strong accounting programs that allow bookkeepers to perform many common financial transactions such as bill payments, deposits, invoices, report generation, inventory management and enterprise budgeting. However, while QuickBooks Desktop is a more traditional program that users download and install on a computer, QuickBooks Online is a cloud-based software that can be used on multiple platforms (Macs, iPhones, iPads, Androids, etc.). Although both versions offer many similar features, several notable differences exist.

Accessibility and usability

One of the biggest advantages of QuickBooks Online is that it can be accessed from any location on any device. However, a reliable, fast internet connection is required, which can be challenging in rural areas. Easy information sharing is very handy when communicating with business partners, accountants, etc. For example, many large feedlots and dairies have offices in multiple locations, and QuickBooks Online allows them to keep just one set of books that can be adjusted and updated anywhere. Also, new users, especially younger producers, typically find this version easier to learn because it operates like a mobile app. On the other hand, long-time Desktop users frequently become frustrated when changing to QuickBooks Online. The program layouts are very different; Desktop functions like a flow chart, while Online primarily uses drop-down menus. QuickBooks Desktop also has more comprehensive features than QuickBooks Online, so users who switch from one program to the other may face a steep learning curve.

Program features

While both versions offer a detailed chart of accounts, customer and vendor centers, general journal entries, bank reconciliations, accounts payables and receivables, and the basic reports needed to run a company, QuickBooks Desktop expands on many of these functions. For example, QuickBooks Desktop has a more comprehensive report center and allows ranchers to switch between different forms with the “view open windows” feature. Accountants also say correcting payroll mistakes is much easier in QuickBooks Desktop. On the other hand, creating invoices is more streamlined in QuickBooks Online. This version also integrates better with popular business applications such as DocuSign, Amazon Business and PayPal. Additionally, it is simpler to set up automatic bill payments and bank feeds with QuickBooks Online.

Switching from QuickBooks Desktop to Online

If desktop users are undecided about changing to QuickBooks Online, they can explore a sample company for free by searching “QuickBooks Online test drive.” From here, they can access a practice company called Craig’s Design and Landscaping Services. This is a great way for ranchers to try out different program features and decide if it is a good fit for their operations. If they do choose to switch, QuickBooks Online can import previous Desktop data into the program. Users simply click the top gear icon, and then select “Tools: Import Desktop data.” We do recommend producers save a backup of their QuickBooks Desktop file because sometimes glitches can occur.

Pricing

Currently, QuickBooks Online has a monthly pricing structure with multiple subscription levels ranging from $35 to $235 per month. Most accountants recommend agricultural clients purchase at least QuickBooks Online Essentials for $65 per month ($780 per year). Ranchers wanting to take advantage of inventory and budgeting features will need to buy QuickBooks Online Plus, which costs $99 per month ($1,188 per year). These prices are significantly higher than they were a few years ago and continue to rise. QuickBooks Desktop customers face a similar situation. Prior to 2022, QuickBooks Desktop users could buy the program for approximately $600, and it was good for up to three years. QuickBooks Desktop now requires an annual subscription that costs over $2,200 annually!

This new pricing system is irritating to many ranchers that aren’t accustomed to, and often can’t afford, such a steep annual charge. In fact, some are so frustrated with the whole QuickBooks system that they are switching to other programs such as Centerpoint Accounting for agriculture. Centerpoint offers many of the same features as QuickBooks Desktop but is cheaper, more tailored toward farming and ranching, and has better technical support. Producers are also changing to Sage, Zar Money, PcMars, etc. However, local accountants are often unfamiliar with these programs and sometimes discourage ranchers from switching, so many continue to use QuickBooks, even as the annual prices rise.

In conclusion, both QuickBooks Online and QuickBooks Desktop are powerful financial accounting programs that offer many benefits to cattle operations. Ranchers should choose which program is best depending on business size, type, needs and personal preferences. However, if more cost-effective record-keeping alternatives are applicable to their operations, they may also consider switching to a different bookkeeping system.