Transition from QuickBooks Desktop to QuickBooks Online Process

ByMason Olivia
accounting

To convert from QuickBooks Desktop to QuickBooks Online, start by saving your sales tax liability report within QuickBooks Desktop. Afterward, create a duplicate of your company file and store it on your local computer.

Sign up for a QuickBooks Online account. You can try it free for 30 days, and get a 50% discount on your first 3 months of service.

Additionally, you can also test drive QuickBooks Online and collaborate with your accounting department or the bookkeeper who manages your books if necessary to ensure that you are selecting the right QB Online plan for your business.

To convert from QuickBooks Desktop to QuickBooks Online, follow these steps in the same format:

  • Save Your Sales Tax Liability Report: In QuickBooks Desktop, begin by saving your sales tax liability report. This step ensures that you have a record of your tax data before making the switch.
  • Create a Backup of Your Company File: Make a copy of your company file and save it locally on your computer. This backup ensures the safety of your data during the conversion process.
  • Sign Up for QuickBooks Online: Register for a QuickBooks Online account. Currently, QuickBooks Online offers a 30-day free trial and a 50% discount on all subscriptions for the first 3 months. Take advantage of this offer to explore the platform.
  • Test Drive QuickBooks Online: Consider testing QuickBooks Online to ensure it aligns with your business needs. Collaborate with your accounting team or bookkeeper, if necessary, to select the appropriate QuickBooks Online plan for your business.

Key Points to Consider:

  • QuickBooks Online offers convenient access through its cloud-based platform.
  • It provides mobile apps for on-the-go financial management.
  • Automation reduces manual data entry.
  • Integration with third-party applications streamlines financial tasks.
  • Suitable for field services and eliminates the need for on-premises hardware.
  • Data security and backups are managed by Intuit.
  • Multiple users are allowed (varies with subscription plans).
  • Resources like guides, forums, and tutorials are available.
  • Subscription plans are available on a monthly or yearly basis.
  • User-friendly for beginners with basic bookkeeping knowledge.

Steps to Convert QuickBooks Desktop to QuickBooks Online:

  • For QuickBooks Pro or Premier Users: Choose a suitable QuickBooks Online version (Simple Start, Plus, Essentials, or Accountant) based on your needs.
  • For QuickBooks Enterprise Users with Inventory: Transfer your data to QuickBooks Online Advanced, as it differs in functionality from QuickBooks Enterprise.

Create a Backup of Your Company File:

It’s advisable to back up your QuickBooks Desktop company files regularly to ensure data safety.

Sign Up for a QuickBooks Online Account:

If you haven’t already, visit QuickBooks Online subscription plans and choose the plan that suits your accounting requirements.

Export QuickBooks Desktop to QuickBooks Online:

  • Log in to your QuickBooks Desktop company file.
  • Select “Export your company file to QuickBooks Online” from the company tab.
  • Choose whether to migrate your data immediately or try QuickBooks Online first.

Sign in to Your QuickBooks Online Account:

Log in to your QuickBooks Online account through QuickBooks Desktop using the same credentials you used during sign-up.

Verify Your Identity:

If required, verify your identity during sign-in, especially if you have subscribed to a monthly plan and entered your phone number during account creation.

Select Your Company File:

Choose the correct company file from the drop-down menu. Ensure you select the appropriate file from which QuickBooks Desktop data will be restored.

Copy and Convert to QuickBooks Online:

  • QuickBooks will review, connect, and initiate the data upload process.
  • During the upload, you’ll see a notification indicating “We’re moving your data to the cloud.”
  • Once the data transfer is complete, QuickBooks will send you an email with the final steps to set up your company file in QuickBooks Online.
  • The duration of the conversion process varies depending on data volume; it can range from minutes to hours.
  • You’ll receive an email notification once the file is successfully transferred.

In conclusion, conversion from QuickBooks Desktop to QuickBooks Online can offer numerous advantages for businesses, such as the flexibility of cloud-based access, automated features, and seamless integration with third-party applications. To make this conversion successful, it’s essential to follow a series of steps, including creating backups, signing up for a QuickBooks Online account, and executing the data migration process. While the conversion process may vary depending on your specific version of QuickBooks, careful planning and attention to detail will help ensure a smooth transition. Ultimately, the move to QuickBooks Online can streamline your financial management, increase accessibility, and enhance collaboration with your accounting team, making it a valuable choice for many businesses.