Convert/Migrate from QuickBooks Desktop to QuickBooks Online

QuickBooks provides you with a unique way to manage the business with strategy and security. QuickBooks Online is also known for its best features. You can access QuickBooks online from anywhere anytime however, QuickBooks Desktop is widely used. Many users are using QuickBooks Desktop and while working they also need to convert QuickBooks Desktop to QuickBooks Online.

The below article informs you about the process of converting QuickBooks Desktop to QuickBooks online.

Things To Consider Before Converting QuickBooks Desktop to Online

Prior to migrating from QuickBooks Desktop to QuickBooks online, here are the list of points you must be aware of:

• Migration of QuickBooks Desktop to QuickBooks Online will need some (limited) downtime for your particular team. Ensure to strategize the migration when it is a slow period to prevent it from upsetting your business too much
• The data present in QuickBooks Desktop can be shifted to QuickBooks Online. But, not all reports or features are present in both the versions. You’ll wish to export any particular custom reports that you have prepared in QuickBooks Desktop prior to the migration.
• QuickBooks Online uses a new pricing plan than QuickBooks Desktop. As per this plan, a monthly subscription fee will be levied rather than a one-time software purchase.

What are the Advantages of Converting from QuickBooks Desktop to Online?

Now when you have finished the procedure of changing from QuickBooks Desktop to QuickBooks Online, there are some key benefits that you must be aware of:

• Automatic Backups: The data is backed up automatically. Hence, in case anything wrong happens to your system, you will not have to lose any information.
• Anywhere, Anytime Access: In case you are not in the office and want to make some edits in your books, you can do it hassle-free with remote access from your tablet, laptop, or smartphone
• Incorporations: QuickBooks Online assimilates with many different applications, making it smooth to link your particular accounting software with the remaining of your business
• Enhanced Security: One of the most key advantages of importing to QuickBooks Desktop Online is augmented security. When your data is saved in the cloud, its gets safety from hackers to use it.
• Smoother Association: Several users can use and change the same file instantaneously. Hence, if you have a team of accountants, they can function on the same file without needing to send it back and forth.

How to Convert QuickBooks Desktop to QuickBooks Online?

QuickBooks Online is used by every small and medium-sized business owner, also is one of the most useful editions. QuickBooks Online can be accessed from anywhere to make the work easier. Even you can back up the data anywhere anytime. Below are the methods to convert QuickBooks Desktop to QuickBooks Online.

Method 1: Verify Data

In this method first, you need to verify the data. To do so follow the below points

• Go to File >> Utilities >>> Verify.
• If there is any issue occurred while verifying the data then you will be asked to Rebuild the data.
• After rebuilding the data, again verify to see if the issue has been resolved or not.

Method 2: Save Company File in QuickBooks Online Format

Open the QuickBooks Desktop and create the company file copy which is compatible with the QuickBooks online. To do the same, go to options Files >>> Utilities >>> and finally go to the Copy Company files option for QuickBooks online. Now, save the file on your Desktop. It helps to create a new QuickBooks file with the extension “OE.qbw“.

Method 3: How to Import QuickBooks Desktop to QuickBooks Online

Once the above two steps are done then you can easily import QuickBooks Desktop Online via Internet explorer.

• Go to option “Company” >>> select option “more” >>> and at last select Import QuickBooks Desktop Data.
• Now select the option “File” which you want to import and let the process complete.
• Once the importing process finished, you will get a confirmation email.

Migrating Desktop File to QuickBooks Online

Step 1: Check the File Size Requirements

To get started, open your QuickBooks Desktop file and press F2 to determine the total target count. If you find that your file has more than 350,000 targets, don’t worry! You can try to reduce the targets by condensing your QuickBooks file. If that doesn’t work, you’ll have to export specific data such as lists and account balances. Let’s get started.

• You can import data to QuickBooks within 60 of subscription. If it is more than 60 days then try for the below steps.
• Convert the subscription to 180 days.
• Using the new email setup to QuickBooks Online subscription verify the data.

Step 2: Prepare QuickBooks Data for Export to QuickBooks Online

• Before proceeding ahead, finish all your outstanding tasks such as bank accounts, inventory, and payroll, etc.
• Update your complete data before converting, here you can also delete the unwanted data.
• Take the back up of your data in the data file. Now, in the QuickBooks Desktop file go to File option >>>backup company >>>Create local backup option.

Step 3: Create a QuickBooks Online Account

• Once work associated with data finished, create a QuickBooks online account and provide the important data required such as email address, Name, mob number, and password.
• When the above step is completed log out of the account.

Step 4: Open QuickBooks Desktop

• After logging out, the new QuickBooks Online account open QuickBooks Desktop to export the data. Don’t forget to download the recent update.
• For that simply go to the Help menu and click on QuickBooks update.
• Now, click on the Company menu and select Export Company file to QuickBooks online.

Step 5: Log in to QuickBooks Online Account Again

• After selecting Export company file to QuickBooks online after login to the new account. The system will ask you if you want to export your existing inventory.
• You should be aware that QuickBooks online values inventory using the FIFO method which is (first in, first out).
• The inventory will be calculated using the same method from the given start data if you click on yes to the value.

Step 6: Choose QuickBooks Online Company

• Now from the drop-down select the QuickBooks online company where you want to import data to QuickBooks Online.

Step 7: Copy Data File

• After selecting the company file, copy the data file there, which takes some time.
• After copying all data you will get a notification and you need to click on OK.
• You need to send an email confirmation regarding the same once your data is ready in QuickBooks online, also you need to ask to complete the setup.
• Before start working on QuickBooks online check if the data has been exported properly. You may also run a profit and loss statement and balance sheet report then can compare with QuickBooks Desktop and Online.
• You will get an email notification once data is ready.
• Now, click on Complete your setup which takes you to log in to QuickBooks Online and review the data.

What Features and Data Migrate from QuickBooks Desktop to QuickBooks Online

QuickBooks Desktop uses various kinds of terms not used in QuickBooks Online for menu options, lists, features, reports, items, transaction types, along with other labels.

Below is a table for the list of the terminology differences between QuickBooks Online and QuickBooks Desktop:

Terminology:

QuickBooks Desktop is using different types of terms than QuickBooks online for menu options, Features, Lists, Items, Transactions Types, Reports and other.

Find the list of terminology differences between QuickBooks Desktop and QuickBooks Online:

Features:

Items

Lists

Preferences

Reports

QuickBooks Online and QuickBooks Desktop do not have the same reports. Accrual basis reports that are available in QuickBooks Online will be same as reports in QuickBooks Desktop. Cash basis reports may be dissimilar.

Transactions

Do You Know What Can Be Converted and What Not?

When switching from QuickBooks Desktop to Online most of your data will import. Below are the few items that won’t convert and it includes:

• Account Reconciliation Reports for Banks and Credit Cards: As soon as you switch to QuickBooks Online, you must re-enter your reconciliations from the point where you left them. If you don’t delete the files, you can still access older reconciliation reports from your desktop version if you need them.
• Audit Trail: You can only keep a duplicate of your desktop version and the data it contains in order to preserve your past audit trail. However, QuickBooks Online will now offer a better audit trail for you.
• Recurring Credit Card Charges: Your current recurring credit card transactions must be stopped in the Merchant Center. Create recurring sales receipts in QuickBooks Online to rebuild them after that is finished.
• Inventory from QuickBooks for Mac: If you have access to a Windows-based computer, you can transfer your inventory there even though you can’t do so from a Mac.
• Reports: Numerous reports in QuickBooks Online might take the place of several that you have been using in the desktop version. The ideal answer is to find a new QuickBooks Online report and start using it.

What to do After You Migrate the Data

Before using QuickBooks Online, there are still a few steps you must complete. Before making any changes to the data or entering new transactions, it is best to finish these as soon as you can.

After the migration, Go through the following checklist to make sure all of your data is transferred as planned and to import any data that wasn’t migrated.

1. Check Your Data by Comparing Reports

To be sure your data was transferred correctly, compare the reports below in QuickBooks Desktop and QuickBooks Online:

• Balance Sheet Report
• Trial Balance- All Dates
• Summary of Customer Balance – All Dates
• Summary of Supplier Balance- All Dates
• For the most recent period, see the Sales Tax Summary Report.
• Any further reports you would like to check

Run the reports using All Dates and change the accounting method in QuickBooks Online and QuickBooks Desktop to accrual to check your data.

2. Confirm Company Settings

We can move your accounting data into QuickBooks Online, but we can’t transfer information like your company’s name, address, or email address. By following the instructions below, you must enter this data in your QuickBooks Online company.

• Select Account and settings from the Settings (gear icon) menu.
• Enter your company’s name and contact details in the Company tab.
• To get monthly invoices from Intuit for your QuickBooks Online subscription, enter the email address in the Company email box.
• Enter an email address in the Customer-facing email box if you do not want your customers to contact you at the company’s email address.
• At last, Choose Save.

3. Configure Your Sales Tax Settings

Before you use QuickBooks Online, make sure that it is configured with the appropriate CRA Business Number and filing frequency. If your company is not sales tax registered, you can skip these steps.

• Select Sales tax under Taxes
• Then you have to select the Set-up sales tax button
• Select Save after selecting the province or territory where you conduct business.
• On the following screen, enter the necessary data before choosing Next.
• Select OK on the next screen.
• At any moment, you can return and change these settings.

4. Connect Bank and Credit Card Accounts

Bank and credit card information is not moved when you switch from QuickBooks Desktop to QuickBooks Online for your security. Follow these steps to link your accounts in QuickBooks Online:

• Begin by selectin Bank transactions under Transactions under Bookkeeping.
• If you already have an account, choose Add Account or Connect Account from the home page.
• Then you have to search for your bank
• Choose Continue, then fill out the pop-up window with your login information for your bank’s website.
• Choose the accounts you wish to connect.
• Choose the appropriate account type from the dropdown option for each account. Your chart of accounts currently lists these accounts.
• Then you have to select the time period for the download and then connect.

5. Clean up Bank Reconciliations

It assumes that no bank transactions have been reconciled because you haven’t done one yet in QuickBooks Online. In order for QuickBooks to only take future transactions into account for reconciliation, you must instruct it to mark all transactions up to the conversion date as reconciled.

• Choose Reconcile from the Settings (gear icon) menu.
• Select Reconcile Now after selecting the appropriate bank account from the drop-down menu, entering the Ending balance, and selecting the Ending date.
• The transactions are shown in a list. To choose every transaction in the list, check the boxes at the top. Make sure you have selected every transaction in both columns if the data is in two columns.
• Find the transactions that haven’t been cleared yet and uncheck them. You have successfully completed the reconciliation when the Difference is zero.
• Then you have to select Finish Now
• Again you have to repeat these steps for each account that you have connected to QuickBooks Online.

6. Link Payments and Credits to Open Invoices

You might see names with zero balances in your A/R and A/P aging reports because the transactions transferred into QuickBooks Online did not link invoices with their corresponding payments. By activating the Automatically apply credits feature, you may quickly link credits and payments to your open invoices:

• Account and settings can be found in the Settings (gear icon) menu, which is located near the top right of the screen.
• Select Automatically Apply credits on the Advanced tab, then click Save.

7. Review Your Accounts Detail Types

Your sub-account hierarchy is maintained by QuickBooks Online after conversion. However, it also makes use of a Detail type, which is an additional level of account typing. You can be more specific with your account organization using detail kinds.

When converting accounts, detail types are assigned to accounts where the detail is evident. The conversion procedure assigns a generic detail type, such as Other Miscellaneous Income, to accounts where it is unclear what the appropriate detail type should be. You can change this right now.

You have to run the Account Listing Report to review and then edit your accounts detail types:

• First, you have to go to the Business overview and then you have to select Reports.
• Then you have to look and open the Account List report and then review your accounts.

• To edit an accounts detail type you have to select the account name and then you have to select the correct detail type from the Detail Type dropdown menu,

• Last, select Save and then close.

8. Complete Payroll Setup

To balance your books, transactions and payroll accounts are converted, but the information behind the transactions—such as payroll item breakdowns and employee year-to-date figures—is not changed.

Journal entries are created for liability refunds, adjustment transactions, and opening balance transactions that have an impact on accounts.

To finish setting up your payroll:

• Select Employees under Payroll.
• Make that every employee who received a paycheck this year has their status set to Yes in the Paid in [Year] column. Anyone who hasn’t received pay this year is automatically listed as No.
• To enter or confirm your year-to-date paycheck totals and employee information, choose Complete payroll setup.
• To finish the setup, follow the instructions to complete the setup.
• When you’re prepared to pay your employees, use Run Payroll.

If your QuickBooks Desktop pay types were not mapped to a typical QuickBooks Online pay type, you might be asked to match your payroll items. To map your QuickBooks Desktop pay types with those of QuickBooks Online, follow these steps:

• In the QuickBooks Online column, you have to choose the (choose one) dropdown.
• Choose the pay type that most nearly matches the item’s configuration in your Desktop file.
• It’s best practice to review your QuickBooks Desktop file and verify how your items are set up to ensure that the pay types match.
• After the mapping is complete, you have to choose Save and Close.
• The same procedure must be followed for each item that needs to be mapped before choosing Continue.

You can’t seem to find any options? QuickBooks Online Payroll does not support all imported pay types. Choose Skip for now in the lower right corner of the screen if this is the situation. If you choose Skip for now, keep in mind that you cannot go back and map your pay types. To finish the payroll setup, you must manually create the pay kinds for your employees.

9. Link Your Payments Account

While your current Payments account cannot be transferred to QuickBooks Online, a new one can be made. To enable payments in QuickBooks Online, follow the below mentioned steps:

• Select Account and Settings from the Settings (gear icon) menu.
• Choose Payments. Choose Learn More from the QuickBooks Payments option.
• Then you have to Create Payments. Three sections of a signup window appear.
• Select Start in the Business section. After completing the form, click Next.
• Select Start in the Owner/Proprietor section. After completing the form, click Next.
• Go to the Bank section and choose Start. Search for your bank after selecting Add a new bank connection.
• Choose the account that should receive payments from customers.
• Select Connect after entering your bank’s login credentials.
• Then you have to select Activate payments when you are finished with all of the sections.

10. Add Users

Check to see that the access is appropriate for any users you want to add to QuickBooks Online. By choosing the Settings (gear icon) menu, then Manage users, you can see your current users.

To add additional users you have to follow these steps:

• First, you have to select Manage Users from the Settings (gear icon) menu.
• Choose Add User.
• Then you have to choose the sort of user you want to create. More options appear on the screen based on the user type you choose.
• Select Save after entering the name and email address of your new user.

After you finish these steps, QuickBooks sends an email to your new user. Ask them to click the email’s link to access a sign-in or account creation page.

11. Invite an Accountant

Up to two accountants can be invited to collaborate with you in your QuickBooks Online company. If you want to invite an accountant, do the following:

• Select My Accountant (Take me there) under Bookkeeping.
• Then you have to select Invite, then enter your accountant’s email address.
• Pick Manage users from the Settings (gear icon) menu.
• Now you have to select Accounting Firms and then you have to select Invite
• Fill out the necessary fields and then click Save.

The advantages of QuickBooks Online such as its affordability along with integration with other applications makes it ideal and worth for your business. We have mentioned all the steps and procedures concerning the migration. We have also stated the advantages of such a migration. If you still need any assistance in converting your QuickBooks Desktop files to QuickBooks Online, we are here for you.

Accounting Professionals, CPA, Enterprises, Owners

Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-800-596-0806 or chat with experts.

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