The choices for accounting software just continue to grow, with new apps and web-based options crowding an already-crowded field of tools that help you track your business finances. But among the growing lineup, one reliable player stands out.
Intuit QuickBooks has remained the choice of accounting and business professionals for decades. Known for its reliability, adherence to accounting industry standards, and comprehensive feature set, QuickBooks serves the needs of millions of small and medium-sized businesses.
Intuit QuickBooks is the clear choice for financial management for many business and accounting professionals. By choosing to use QuickBooks on a hosted platform with Summit Hosting, you gain numerous additional benefits, including:
- Reliability and data security
- Access to the latest technological upgrades and improvements
- The ability to scale your software as your business grows
- Comprehensive technical support and maintenance
After you’ve chosen a hosting platform and selected which software version is best for you business (cloud-based QuickBooks Pro, Premier, Enterprise or Accountant?), you may have found yourself asking a new question: Should I buy or lease QuickBooks?
At Summit Hosting, you can choose to lease or purchase your QuickBooks license directly through us. Both options offer distinct advantages that the other can’t provide; it’s purely about which option is better for your business.
Here are some guidelines to help you make the last, big accounting software decision: To lease, or not to lease?
Buying vs Leasing QuickBooks
As we’re sure you guessed, there are a few major differences between leasing and buying your QuickBooks license. According to certain circumstances, the pros of one option may outweigh those tied to the other, so, it’s important to decide which will be the best fit for your unique situation, budget and overall business requirements.
Lease or Purchase QuickBooks: What’s the Difference?
Before you can determine whether buying or leasing QuickBooks is the best choice for your business, you’ll need to understand the differences.
Whether you lease or buy Intuit QuickBooks, using a hosted version of QuickBooks offers a variety of advantages. Rather than installing multiple copies of the QuickBooks software on individual computers within your business, a hosted version allows you to run this critical software over your network — on as many computers as you need. The software resides on a remote server managed by Summit Hosting, allowing you to access the software over the internet from any location.
Using hosted software can benefit your company financially, as it reduces the need for costly, on-site technical support. In addition, using a hosting service for your QuickBooks software and data offers you the flexibility to allow your employees to work from home or other remote locations. It also gives you instant backups, eliminating the need for creating your own off-site backup solution.
When you choose to lease a QuickBooks license, you do not own the software. Instead, you pay your hosting provider a periodic fee for use of their license to the software. Your use of the software continues as long as you pay the fee. Leasing can offer you a number of advantages, depending on specific details about your business.
Is Leasing or Buying a QuickBooks License Better?
The short answer: It depends.
By purchasing a QuickBooks license, you gain a tangible ownership asset that allows you unlimited use under the terms of the license, without ongoing costs. By leasing, on the other hand, you may reduce your upfront costs for using the QuickBooks software, and you may gain flexibility that purchasing a license does not provide. The best solution for your business can depend on multiple factors. Summit Hosting can assist you in making the best choice for your unique business needs.
Depending on your industry, the size of your company, your number of employees, the resources you can dedicate to software, and other factors, you may find your decision beginning to sway toward leasing or purchasing. Tell us more about your company, and we can help you make the most financially savvy decision. Here are some of the most important differences to consider between leasing and buying QuickBooks.
Leasing QuickBooks: Pros and Cons
The pros of leasing QuickBooks include:
- Flexible billing: Leasing QuickBooks through Summit Hosting provides flexible monthly billing to businesses that are interested in shorter-term usage of the features and benefits provided by QuickBooks.
- Adding and removing users: For businesses that have dynamic employment, the users who need access to QuickBooks may change frequently enough that leasing provides a natural advantage. Purchasing a license is better for a company with more static user count.
- Less cost upfront: Many small businesses prioritize the conservation of capital expenses when an alternative billing arrangement – such as leasing – exists. This allows for more strategic allocation of a business’ available capital with the cost of QuickBooks marginalized to a monthly premium. By leasing QuickBooks monthly with Summit Hosting, a business can maintain a low-cost means of taking advantage of all that QuickBooks has to offer.
- Opportunity for a test drive: If you’re not familiar with Intuit QuickBooks, you and your staff members may benefit from the opportunity to try out the software without a long-term commitment. By leasing your software license, you can try the software for as long as you wish, allowing you the time you need to learn if it meets your business needs. If you determine that QuickBooks is the right tool for you, you can continue leasing or you may choose to purchase.
- Comprehensive support: At Summit Hosting, we provide you with in-depth support for setup and installation, along with resolving any technical issues that may arise.
The cons of leasing QuickBooks include:
- Higher cost overall: Business owners who choose to lease their QuickBooks licenses may pay a higher cost for using the software over the long term than those who opt for purchasing a license.
- Ongoing expenses: Leasing QuickBooks means you’ll have an ongoing expense item for continuing to use the software.
- No ownership: When you lease your QuickBooks license rather than purchasing, you do not own the license as a tangible asset. Instead, you pay an ongoing fee for continuing use of the QuickBooks license belonging to your hosting organization.
Purchasing QuickBooks: Pros and Cons
Is purchasing QuickBooks a better choice for your business? Here are some of the pros and cons.
The pros of purchasing a QuickBooks license include:
- Lower cost overall: When a business chooses to purchase their QuickBooks License, as opposed to leasing, it is most often done so to save as much as possible on long-term usage. As an example, most businesses that choose to purchase QuickBooks from Summit Hosting save up to 70% from otherwise leasing the same licensing over the course of three years!
- No recurring expenses: Although there can be significant upfront capital expense in taking advantage of these savings, it is done once, eliminating monthly operating expenses over the course of time. This is an ideal arrangement for businesses looking to control future expenses, as there is no longer a need to allocate an expense monthly towards your QuickBooks needs.
- A working asset: Ownership has a real distinction over leasing QuickBooks, as by purchasing your QuickBooks through Summit Hosting, you now have a working intangible asset for your business instead of a leasing liability. For many businesses, this is the difference-maker in deciding whether to purchase or lease their QuickBooks software.
The cons of buying QuickBooks include:
- Less flexibility: When you purchase a QuickBooks license, you pay for a specific number of users of the software. Should you increase or decrease the number of employees who need to use QuickBooks, you will have less flexibility with a purchased license rather than a leased license.
- Higher upfront costs: Purchasing a QuickBooks license provides your business with an intangible asset, and you will pay more for ownership. As a result, your business will have less capital available for other purchases of equipment and durable assets.
- Long-term commitment: If you and your staff members have not previously used QuickBooks, you may benefit from the chance to try out the software — through leasing — before undertaking the longer-term commitment that purchasing represents.
Whether you choose to lease or buy QuickBooks through Summit Hosting, a hosted solution provides maximum flexibility, efficiency and productivity for business owners and accounting professionals. The choice between buying and leasing really comes down to your preference and the needs of your business.
Making the Decision to Lease or Buy QuickBooks
What are some of the factors to consider when deciding whether buying or leasing is best for your business?
Level of commitment desired. Purchasing an asset requires a higher level of commitment than leasing the same asset. Before purchasing QuickBooks, you’ll want to do some research to ensure that the software – as well as that particular version of the software – is a good fit for your business needs.
Level of flexibility needed. Although leasing costs more on an ongoing basis, it provides you with a higher level of flexibility. If you lease QuickBooks and then find that it does not meet your needs, you can make a change more easily than if you purchase the software license.
Age and maturity of business. In many cases, owners of older and more-established businesses may prefer to purchase software as an asset. Newer businesses may have less available capital and may prefer a leasing arrangement to spread out the costs.
Other business needs. Whether your business is new or established, you’ll need to consider the best use for the capital you do have. Even if you have significant financial resources available, you may choose to use them for other purchases. In that case, leasing QuickBooks may make the most sense.
Tax implications. Both purchasing and leasing QuickBooks can have positive tax implications for your business, depending on your specific circumstances. In some cases, capital expenses can provide tax benefits over several years of amortization or capitalization, while leasing provides an ongoing business expense that can be used to offset revenues. A tax professional can assist you in determining the specific tax implications for your business when leasing or purchasing.
If I Purchase, Which Version of QuickBooks Should I Buy?
If you’re unsure which version of QuickBooks to buy, you may wish to lease one temporarily before making the commitment to purchase a license for a specific version. Summit Hosting offers access to several versions of QuickBooks, including QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise and QuickBooks Accountant.
Regardless of the QuickBooks version you choose, you can handle your accounting needs quickly and efficiently by partnering with Summit Hosting. For every version of QuickBooks, we provide you with remote access from any device that you and your employees prefer, around-the-clock support, and enhanced security that includes two-factor authentication and encryption.
Next Steps: How to Lease or Purchase a QuickBooks License
Ready to purchase or lease QuickBooks? Summit Hosting can assist you with the process, and we can answer any remaining questions you may have to ensure you’re making the best choices for your company. We’re dedicated to making the process as simple and seamless as possible so that you can focus on what matters most: running your business.
For more than a decade, we’ve developed products and services to provide you with comprehensive business solutions. When you partner with Summit Hosting for your cloud hosting needs, you’ll benefit from the use of a dedicated server — rather than a shared hosting environment — that includes the resources you need to install required applications and make updates easily. We offer both lease and purchase options, as well as options to bundle your software with dedicated server cloud hosting.
To get started with purchasing or leasing your QuickBooks license, or to get pricing on leasing vs purchasing QuickBooks and hosting it in the cloud, just contact us today! Call us at 1-888-244-6559 to speak with a QuickBooks cloud hosting specialist.