Quickbooks conversion from desktop to online


Quickbooks conversion from desktop to online

Quickbooks conversion from desktop to online: The main objectives are to learn what to expect from the conversion, learn how to convert QuickBooks Desktop file, and understand what the next steps are to getting started.

What is QuickBooks Online:

Let’s start by defining what is QuickBooks online, first of all, its online cloud-based accounting software. This means that the data, as well as the software, is hosted in a cloud.

So no longer you will have desktop data and software installation on your computer. All of it will be hosted in the cloud and accessible through your internet browser. It can sync all of your bank accounts and credit cards into the QuickBooks Online dashboard and all transactions will automatically flow into the dashboard. Read more on QuickBooks Online Vs QuickBooks Desktop

How does the conversion work?

Before we get started in the conversion process it’s important to take a few notes about what to expect from the conversion first. For the conversion we need a QuickBooks Online account, for that, we can sign up for a free trial and take it for a test drive.

When you convert your QuickBooks desktop file, you can try QuickBooks Online for a trial period for 30 days, and you have the comfort to know that your QuickBooks desktop file remains the same and intact. You can use this trial period to get train on QuickBooks Online. Support Team and FAQs are constructive.

What the conversion does for you and what the conversion won’t do for you

First, what does it do:

  • GL Accounts: It imports all of the General Ledger Accounts including opening balances for all of these names and accounts
  • Transactions: It imports all of your transactions including details
  • Customer and Supplier Ledgers: It imports all of your list information including customers suppliers items or what we call products and services

The conversion won’t do for you:

you’ll see that there’s a number of things that it doesn’t do however there’s a number of explanations that are needed to better explain what QuickBooks is doing for you during the conversion process number one

  • Inventory: Quickbooks Online does inventory however it does not convert the Desktop Inventory into Quickbooks Online. The reason is QuickBooks Online handles inventory using the FIFO method or first-in-first-out method and on the other hand you can contrast Desktop version uses the average weighted cost method. So the conversion from one to the other does not go very smoothly. Because of this reason, it’s recommended that you turn the inventory off and start fresh when you go into QuickBooks Online.
  • Multi-Currency Conversion:  The automatic conversion does not convert multi-currency transactions for you, however, if you contact the Support Line and explain the requirement, they’d be more than happy to help you with this conversion. They have a service that does the conversion for you. So you can rest assured that the conversion will work.
  • Form templates: All of the templates that you see in QuickBooks desktop, will have to be recreated once you get into QuickBooks Online. This is a complex task that cannot be accomplished through the conversion. Likewise, memorize reports will have to be recreated in QuickBooks Online as well.
  • Payroll: Just like inventory QuickBooks Online does payroll. However, the conversion from desktop to online does not include the payroll transactions or the names in your payroll list. This is something that you’ll have to redo when you get into QuickBooks Online using a very convenient tool called year-to-date amounts.
  • Bank reconciliations: It’s a good idea to do your bank reconciliations before you move to QuickBooks Online. Because you’ll have to do one big reconciliation when you get into the online version.
  • Premier features: Items like sales orders items with units of measure, build assemblies, and price levels do not get converted. That is because those features are exclusively available in the QuickBooks desktop premier version and are not available in QuickBooks Online.

We hope that this clarifies what the conversion does for you and what it doesn’t do for you, next we can move to the conversion process.

QuickBooks Conversion from Desktop to Online – Pre conversion Tasks

Now you’re ready to start the conversion process, before going any further it’s a good idea to follow these Five Tips to make sure that you get the most out of your conversion.

  1. Reconcile the bank:  It’s a good idea to reconcile your bank with the most recent transaction statement. The reason you’ll do this is, it makes it easy to have the reconciliation reports from QuickBooks Desktop to use as a reference when you get into QuickBooks Online. Since you’ll have to do one big catch-up reconcile in QuickBooks Online, it’s useful to have reconciliation reports to referring back.      It’s a good idea to do this for all accounts that you normally reconcile including bank accounts and credit card accounts.
  2. File your sales taxes: It’s a good idea to have all your sales taxes filed before you do a conversion. You can always file them in QuickBooks Online but it’s a good practice to do it in QuickBooks desktop.
  3. Payroll: If you use QuickBooks desktop for payroll it’s a good idea to pay your payroll liabilities before converting to QuickBooks Online.
  4. Turn off Payroll: Since you can’t convert your payroll transactions and names it’s just a good idea to turn it off the payroll before you start the conversion process.
  5. Turn off Inventory: If you’re using QuickBooks Desktop for inventory, once again go to the Inventory Tab and make sure that you clear the checkmarks under Inventory and Purchase Orders.

Those are the five steps that we recommend to take care of before you convert your file to QuickBooks Online.

Now that you’ve prepared to do the conversion and you’re ready to take the next step and convert the file in QuickBooks Desktop to QuickBooks Online.

Steps to follow to complete the Conversion

  • Log into Quickbooks Desktop and You’ll click on the Company Menu and then click Export company file to Quickbooks Online.
  • Make sure you have already set up Quickbooks Online account, so You have a user ID and password. If you don’t already have a user ID and password please visit Quickbooks, and sign up for Quickbooks Online.
  • Once the login window is popped up, enter the user ID, password and read and agree to the Terms of Service. Then click sign in QuickBooks Online.
  • If you have already set up the company in QuickBooks Online, It will show you the company profile to select and then it will continue to now exports the data out of QuickBooks desktop and into QuickBooks Online. At this point, it is going to work behind the scenes to convert the data from your Desktop file into QuickBooks Online and it indicates that it will send you a confirmation email to the email address on file when it’s completed the conversion. Normally It will take a few minutes to do the conversion depending on the QuickBooks Desktop file size.

QuickBooks Conversion from Desktop to Online – Post conversion Tasks

Now that you’ve done the conversion process, you’re ready to log in and see what QuickBooks has done for you. So once you logged in you will see QuickBooks Online opens up to the home page. Now it’s a good idea to test what QuickBooks Online contains for information against what you’ve got in QuickBooks desktop.

So we need to run reports on QuickBooks Online and compare with what we had in QuickBooks Desktop. It gives you the peace of mind that the conversion was done accurately, so run some reports and QuickBooks Online and compare them to QuickBooks desktop.

Run a Profit and Loss Statement and Balance sheet for a specific period and compare with Desktop reports. This is to get the peace of mind that the conversion was done 100% accurately for you.

Now the QuickBooks has completed the conversion for you and you’ve tested that everything is accurate, you’re now ready to complete the three or four tasks that need to be accomplished after you convert to QuickBooks Online.

  1. Set up new users
  2. Customize your forms
  3. Customized reports
  4. Reconcile the Bank accounts and Credit Cards
  5. Set up the Chart of Accounts

Set up New Users

Once you’ve converted to QuickBooks you’ll have to set up the users you may have had in your QuickBooks Desktop file. To do this click Manage Users in the Settings window. QuickBooks Online let you o set up users for your own company. We can set up a regular or custom user a company administrator or in QuickBooks Online Plus we can set up reports only or time tracking only users which give limited access to users within your company.

Let’s set up an accounts receivable user so someone who is going to do sales and invoicing

  • Select regular or custom user then click Next, select limited and then select customers and sales and then click Next, you can then answer what type of user rights you want to assign to this user. Example: limit this user to no access to user management only viewing the company information and no access to subscription and billing.
  • And then click Next, finally enter the email address of the person who is going to be an active user in QuickBooks online, and that sends an email and invites the user to set themselves up in QuickBooks Online.

Customize your Forms

The second step in getting going after converting to QuickBooks Online is to customize your forms. To customize forms click the Company Menu/Settings Icon and then click Custom form styles. In this window, we can create new styles or use one that’s already existing. Following forms are available on QuickBooks Online.

  • Invoice
  • Sales Receipts
  • Estimate

Recreate Customized Reports

The third step after conversion is to recreate your memorized reports to create reports in QuickBooks. You need to move to the reports section and you can find the reports that you need under one of the headings such as Standard, Custom and Management reports. You can Customize any of those reports as per your requirement.

Reconcile the Bank accounts and Credit Cards

Next step after you convert to Quickbooks online is to make sure that your accounts are reconciled. To reconcile accounts click on the Company Menu and then click reconcile. Select the account that you would like to reconcile, enter the statement ending date and reconciling.

However, this should be made easy if you’ve done your reconciliations in QuickBooks Desktop before you do the conversion. You can print off what we call a reconciliation detail report and you can reconcile up until that point and just leave the outstanding or unreconciled transactions in your bank or credit card account and that will make one big reconcile and it will make the following reconcile. It’s very easy and brings you up to date very quickly. Once you’ve chosen the transactions and you’ve got your amount to zero you’re then ready to go and click finish now and complete the reconciliation.

Set up the Chart of Accounts

This is the final step of post-conversion tasks and this will brings your financials into a professional look and standardize the format of Financials. You can easily activate General Ledger Account Numbers and start numbering GL accounts according to the format you are following.

You should be very careful when we select Parent Accounts and Subaccounts for each parent account. And if you expect to create departments that are also should be kept in your mind when you design the COA format. Enabling and creating Classes also another effective method to formalize the Chart of Accounts in a company profile.

That’s the last step that you need to do as the post-conversion tasks. Now you will be able to do the conversion and setup QuickBooks Online account. Once the conversion is over you will be able to set up other formalities slowly.

But it is always a recommended practice to keep a backup of QuickBooks Desktop file. You can simply upload the file into a cloud or offline storage. Anyways if something happens to your QuickBooks Online Account, you can always recover QuickBooks Online account contacting the Intuit Support Line. They are very responsive and very helpful with these kid of issues.


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