Cloud based solutions have become integral components of financial management in any modern day business and Dext and QuickBooks Online (QBO) are examples of such solutions. Each application simplifies certain bookkeeping functions, but Dext and QBO perform different functions in the accounting process. Learning the differences in the functions of Dext and QBO enables any business to better integrate its software systems and maximize the return on its investment.

Dext offers data extraction and document management capabilities. Dext captures, reads, and organizes documents such as receipts, invoices, and bills. It aims to provide precise document data to be utilized for other accounting tasks.

In contrast, QuickBooks Online is a complete accounting software. QBO captures, records, and processes revenue and expenses, and produces other financial documents, such as financial statements and income tax return reports.

Data Entry Versus Accounting

The key focus of Dext is to automate the most tedious accounting function, that is data capturing. Using OCR technology, Dext scans documents, captures key details (including the vendor name, transaction date and amount), and auto-categorizes the document, thus greatly reducing manual data entry.

QBO takes care of accounting tasks like handling income and expenses, controlling accounts payable and receivable, generating invoices and bills, and bank statement reconciliation.

User Roles and Accessibility

Bookkeepers, accountants, and small business owners use Dext to gather financial documents from several different sources, especially in teamwork settings. Dext is especially helpful in environments with multiple clients where collecting documents becomes complicated. In contrast, QBO is intended for business owners, finance managers, and accountants. It focuses on the overall financial picture, providing dashboards, reports, and analytics. Therefore, while Dext streamlines data collection, QBO focuses on strategic outcomes, providing comprehensive financial data for effective decision-making.

Dext has a cost structure based on the number of users and documents, which is good for scaling bookkeeping firms. In contrast, QBO has tiered subscription plans with a variety of accounting features. Many accounting professionals work with both tools in practice: Dext for data capture and QBO for accounting.