More and more finance teams are making the jump from QuickBooks Desktop to QuickBooks Online. The online version maintains the user experience that you’re used to while allowing access from anywhere at any time. QuickBooks is in the process of phasing out its desktop software. July 31 of this year is the last chance people will have to buy most QuickBooks Desktop products. While this doesn’t necessarily impact existing Desktop subscribers, changes are coming. In May, QuickBooks plans to discontinue QuickBooks Desktop 2021. That means this product stops getting security updates and users will lose access to QuickBooks Desktop Payroll, Desktop Payments, Online Banking, and more, along with live technical support and Online Backup. Companies that want to get ahead of this should start thinking about transitioning to QuickBooks Online now.
What you need to know before Converting from Desktop to Online
Moving to QuickBooks Online means moving all of your data over. You shouldn’t lose anything in the transition. QuickBooks makes it possible to migrate all of your data — from your company’s ledgers to payroll info — from Desktop to Online. You should still download and save your file just in case something goes awry during migration. You may still be able to take advantage of the company’s free migration assistance. Technically, this free support was only supposed to be available until January 17. You can check the FAQs section on their website to see if it’s still promoted today. If it is, it’s well worth inquiring with their team to see if migration assistance is still on offer without a fee. If it’s not, or if you just want to have control in transitioning all of your company’s sensitive financial data, you can handle this migration yourself. Here’s your step-by-step guide.
Step 1: Back up your data
In QuickBooks Desktop, hit “File,” then choose “Create Backup…” and pick “Local backup”. You’ll be prompted to choose where you want the file to save. The resulting file is your safeguard measure in case you run into any issues with migration, so save it somewhere strategic. If you don’t see the backup option available, you might be in multi-user mode. To switch to single-user mode, choose that option from the “File” menu.
Step 2: Update QuickBooks Desktop
Export files from QuickBooks Desktop running on the latest software for the most seamless transition. To update your QuickBooks Desktop to the latest and greatest version, choose “Help” from the top menu, then click “Update QuickBooks Desktop”. Hit “Update Now,” then choose “Get Updates”. You might need to restart QuickBooks and your computer to finalize the update.
Step 3: Handle payroll
If any payroll runs are outstanding or you need to make any payroll tax payments, do it now. Then, choose “Edit” and “Preferences…” to pull up the preferences menu. In that, choose “Payroll & Employees” from the left-hand menu, then click “Company Preferences” and select “No payroll”. This turns off payroll in QuickBooks Desktop so you don’t accidentally duplicate payroll by running it in both Desktop and Online.
Step 4: Get your sales tax liability report
You’ll need to enter adjustment entries when you set up QuickBooks Online, so you’ll want this handy. To get your sales tax liability report, click “Reports” > “Vendors & Payables” > “Sales Tax Liability”. Choose “All” from the “Dates” dropdown menu. Select “Save as PDF” from the “Print” dropdown menu. Pick where you want to save the PDF, then hit “Save”.
Step 5: Make sure your file isn’t too big
Hit Ctrl+1 on your keyboard. This will open up your Product Information window. In the “File Information” box, you’ll see a field titled “Total Targets.” In the U.S., you need to have fewer than 750,000 to export your QuickBooks Desktop file all at once. If you’re over that number, you’ll need to export lists and balances individually to QuickBooks Online, which essentially just means repeating the below steps a few different times. Because this is more complicated, you might want to loop QuickBooks support in there, which we show you how to do at the end of this article.
Step 6: Get your data ready to export
Now, you’re going to select “Company” from the top menu, then click “Export Your Company File to QuickBooks Online.” Hit “Get Started” and you’ll have the option to export all of your company’s data or specific data. Choose “Export all your company data” unless your file’s too big (i.e., you have too many targets) to do it all in one go.
Step 7: Create or sign into your QuickBooks Online Account
Hit “Continue” and you’ll be given the option to either sign
Frequently Asked Questions
What is the process for migrating data from QuickBooks Desktop to QuickBooks Online?
Migrating data from QuickBooks Desktop to QuickBooks Online involves several steps. The first step is to ensure that you have a stable internet connection. Then, you need to create a QuickBooks Online account and log in to it. After that, you can use the migration tool in QuickBooks Desktop or the online tool provided by QuickBooks to transfer your data. You can also manually export your data from QuickBooks Desktop and import it into QuickBooks Online.
Can I transfer my QuickBooks Desktop data to QuickBooks Online for free?
Yes, you can transfer your QuickBooks Desktop data to QuickBooks Online for free. QuickBooks provides a free online tool to migrate your data. However, if you need assistance during the migration process, you may need to pay for support services.
What are the limitations I might face when migrating from QuickBooks Desktop to QuickBooks Online?
There are some limitations to consider when migrating from QuickBooks Desktop to QuickBooks Online. For instance, some features in QuickBooks Desktop may not be available in QuickBooks Online. Moreover, QuickBooks Online has a different user interface, which may require some time to get used to. Additionally, you may need to purchase a new subscription to QuickBooks Online, which may be more expensive than your current QuickBooks Desktop subscription.
Is there a checklist I can follow to ensure a smooth transition from QuickBooks Desktop to QuickBooks Online?
Yes, QuickBooks provides a checklist to help ensure a smooth transition from QuickBooks Desktop to QuickBooks Online. The checklist includes steps such as backing up your QuickBooks Desktop data, verifying your data, and ensuring that you have a stable internet connection. You can find the checklist on the QuickBooks website.
What should I do if I've exceeded 60 days and need to transfer my QuickBooks Desktop data to QuickBooks Online?
If you've exceeded 60 days and need to transfer your QuickBooks Desktop data to QuickBooks Online, you may need to contact QuickBooks support for assistance. They may be able to provide you with a solution to transfer your data, but you may need to pay for support services.
How much time should I allocate for the conversion from QuickBooks Desktop to QuickBooks Online?
The amount of time required for the conversion from QuickBooks Desktop to QuickBooks Online depends on the size of your data file and the speed of your internet connection. Typically, the conversion process can take anywhere from a few hours to a few days. It's important to allocate enough time for the conversion process to ensure that everything is transferred correctly.
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