QuickBooks Online Migration Tool: How to Use?

Migrating to QuickBooks Online (QBO) offers businesses enhanced accessibility, allowing users to manage financial data securely from any location with an internet connection. Compared to QuickBooks Desktop (QBDT), QBO provides cloud-based automation, easier team collaboration, and real-time data updates. These features streamline accounting operations and support more agile decision-making. However, ensuring an accurate data transfer during migration is critical, as any loss or inconsistency can disrupt workflows and compromise financial reporting. Proper planning and verification are key to maintaining the integrity of business records throughout the transition.

You can migrate data to QBO using various available methods. Intuit’s built-in migration tool offers a convenient and direct option for users switching from QBDT. Alternatively, the Dancing Numbers Migration Tool, which is used by over 50,000 users, provides a guided and reliable process for more complex transfers. For those preferring greater control, manual data import allows selective transfer of specific records and customization based on business needs.

Reasons to Migrate from QuickBooks Desktop to QuickBooks Online

Here are a few reasons why users are switching to QuickBooks Online:

• With an internet connection, you can view and handle your financial information from any device, anywhere.
• Share real-time access with your team and accountant, improving coordination and reducing delays.
• Add users, features, and data storage easily as your business expands.
• Your data is securely stored in the cloud with QuickBooks Online, minimizing the risk of data loss
• Automate tasks like bank reconciliation and recurring transactions to boost efficiency.
• QuickBooks Desktop is Going Away gradually.

Methods for Using QuickBooks Online Migration Tool

QuickBooks offers three main methods for moving data to QuickBooks Online. Choose a migration method based on data complexity, team skills, and budget needs carefully. Here are the methods you can opt from migrating data from QBDT to QBO:

1. Intuit’s Built-in Tool: This is a simple option for businesses with basic accounting needs and smaller data files. It guides users step-by-step through the transfer.
2. Third-Party Services: These are ideal for businesses with large or complex data, multiple locations, or extra support needs. Experts handle the entire process securely.
3. Manual Import: Businesses with strong technical skills can upload data using CSV files. This method gives more control but takes time and requires a good understanding of data mapping.

Here’s a table that will help you choose the method suitable as per your requirements:

Method	Difficulty Level	Support Level	Best For	Risk of Error
Intuit Tool	Moderate	Moderate	Small files, simple data	Low
Dancing Numbers	Low	High	Complex/multi-source migrations	Very Low
Manual Import	High	Low	Advanced users only	High

Keep reading to for more insights on each migration method, its pros and cons, prerequisites, step-by-step guide, and post-migration checklist!

Method 1: Intuit QuickBooks Online Migration Tool

QuickBooks Online stands out as a leading solution, providing cloud-based features like real-time access to data, effortless team collaboration, and automated backups. For QuickBooks Desktop users considering the switch, Intuit’s built-in QuickBooks Online migration tool simplifies the transition process. Check out its pros and cons to know better:

Pros

• Transfers key data types including customers, vendors, accounts, and transactions without manual entry.
• Maintains accuracy by keeping your financial structure consistent during migration.
• Supports smooth workflow by reducing the need to recreate transaction history or financial reports.
• Offers a guided interface that walks users through each step with clear instructions.
• Allows users with minimal technical skills to manage the migration without expert help.
• Reduces the risk of data entry errors by automating the transfer process.
• Saves time by handling large portions of financial data quickly and efficiently.

Cons

• Only supports company files below a certain size. Large files may need cleanup before migration.
• Does not carry over all elements, such as custom fields, progress invoicing, or subtotal formatting.
• May result in missing or altered data during migration, requiring a detailed review afterward.
• Does not transfer custom templates, saved reports, or user-specific settings from QBDT.
• May not align migrated sales tax payments with QBO’s tax center structure, requiring manual edits.
• Needs version compatibility; unsupported versions of QuickBooks Desktop may block migration.

Steps to Migrate from QBDT to OBO Using Intuit’s Built-in Migration Tool

Check out this step-by step guide to migrate data from QuickBooks Desktop to QBO using Intuit’s Built-in QuickBooks Online Migration Tool.

Pre-Migration Preparation Checklist for Migrating to QuickBooks Online

Ensure that the following requirements and guidelines are met before you start using the QuickBooks Online Migration Tool.

• Go through QBO interface to increase familiarity with its user-interface.
• Run ‘Verify Data‘ and ‘Rebuild Data‘ to fix file issues before migration.
• Pick from Simple Start, Essentials, Plus, or Advanced based on your business size and needs.
• Match all bank and credit card records with your Desktop data.
• Assign clear categories to each transaction for accurate reporting.
• Correct typos, duplicates, wrong dates, and missing fields.
• Save your company file to a computer or external drive.
• Use Intuit or another provider for online backup and extra protection.
• Map fields correctly if your QuickBooks Online migration tool requires it.

Step 1: Run Export Tool

1. Go to QuickBooks Desktop.
2. Go to Company menu.
3. Select Export Company File to QuickBooks Online option.
4. Hit the Get Started button.
5. Enter your Intuit account login credentials.

Step 2: Select Location

1. Click on Choose Destination.
2. Provide your QuickBooks Online Company name.

Note: Choose the correct company name if you are replacing your current QBO company.

Step 3: Migrate Inventory Data

1. Users will be notified to include the Inventory while migrating.
2. Select the ‘as-of-now’ date of your Inventory’s data.
3. Lastly, confirm your selection.

Step 4: Transfer Data and Provide Confirmation

1. Carefully go through the data transfer summary.
2. In the required field, enter ‘Agree’ to acknowledge the terms and conditions.
3. Now, hit the Replace button to begin migration.

Post-Migration Preparation Checklist for Migrating to QuickBooks Online

Once you are done with migrating data from QBDT to QBO, go through the following checklist to ensure secure data transfer:

• Check account balances, invoices, bills, and payroll to confirm correct transfer.
• Match bank and credit card statements with QBO records to confirm accuracy.
• Compare Profit & Loss, Balance Sheet, and Sales Reports to ensure figures are correct.
• Assign or update user roles and permissions to control data access.
• Get familiar with the QBO dashboard, menus, and tools using built-in guides.
• Create sample invoices, log payments, and run reports to confirm everything works.

Method 2: Use Third-Party Softwares like Dancing Numbers

If you’re looking for a smooth, secure, and hassle-free way to switch to QuickBooks Online, using the Dancing Numbers is an excellent option. This third-party tool is specially designed to help businesses migrate from different platforms to QuickBooks Online with minimal effort and maximum accuracy.

User-Friendly Interface

You don’t need to be a tech expert, Dancing Numbers offers a simple, step-by-step interface that walks you through the entire migration process. From selecting your source data to importing it into QuickBooks Online, the process is intuitive and user-friendly.

Accurate Data Mapping

The tool ensures that your financial data is mapped correctly from your current system to QuickBooks Online. This reduces the risk of errors, missing information, or misaligned data fields.

High-Level Data Security

Security is a top priority. Dancing Numbers uses advanced encryption methods to keep your financial data safe and secure during migration.

Fast and Flexible Migration

Whether you’re moving data from Excel or another accounting software, the tool supports bulk data transfers and multiple source formats. Its batch processing feature helps you migrate large amounts of data quickly.

Expert Support Available

Get peace of mind with expert help just a call or message away. The dedicated support team can guide you through any questions or technical issues.

When you using QuickBooks Online Migration Tool by Dancing Numbers, your business can transition to QuickBooks Online with confidence, saving time, reducing errors, and getting up to speed with cloud accounting faster.

Method 3: Manual Method

While migrating to QuickBooks Online (QBO) brings many advantages, like real-time access and improved collaboration, the idea of transferring your financial data manually from QuickBooks Desktop (QBD) can be overwhelming. This process is often slow, error-prone, and disruptive. Here’s why manual migration is best avoided:

Disrupts Workflow

Manual migration often involves cleaning and reformatting data to make it compatible with QBO. This disrupts your current accounting processes and can lead to delays in day-to-day operations.

Risk of Human Error

Human error is a major risk during manual migration. A small typo or skipped entry can lead to inaccurate reports, misbalanced accounts, or compliance issues, errors that are hard to trace and correct later.

Time-Consuming

Manual data transfer takes up a significant amount of time. Entering data field by field not only delays your migration but also takes your attention away from important accounting and business tasks.

Instead of risking delays and data issues, consider automated tools like QuickBooks Online Migration Tool or Dancing Numbers, which simplify the process and ensure a smooth, error-free transfer.

Conclusion

Migrating to QuickBooks Online doesn’t have to be complicated. Whether you choose Intuit’s built-in tool, the QuickBooks Online Migration Tool or Dancing Numbers, or a manual method, preparation and the right approach can ensure a smooth transition. For most businesses, using a trusted third-party tool like Dancing Numbers can save time, reduce stress, and improve data accuracy.

Frequently Asked Questions (FAQs)