Migrate QuickBooks Desktop to Online: What to Check Before, During & After Migration
Businesses that have relied on QuickBooks Desktop for years often reach a point where cloud access becomes more important. Employees may need to work remotely, accountants may need access without exchanging company files, and business owners may want their financial information available beyond a single computer.
That is why many businesses decide to migrate QuickBooks Desktop to Online. However, moving accounting data should not be treated as a simple software upgrade. QuickBooks Desktop and QuickBooks Online use different environments, and some features or data can behave differently after the transition.
A little preparation before the move can make the entire QuickBooks Desktop to Online migration much easier to manage.
Why Make the Move to QuickBooks Online?
QuickBooks Online is a cloud-based accounting platform, so businesses can access their accounting environment without depending entirely on the computer where their Desktop company file is stored. Intuit also highlights features such as mobile access, connected banking and automated transaction workflows as benefits of the online platform.
For a business that has traditionally worked with QuickBooks Desktop, the change can provide several practical benefits.
Easier Access
Instead of keeping accounting work tied to a particular workstation, authorized users can access QuickBooks Online through the cloud.
Better Collaboration
Business owners, bookkeepers and accountants can work within the same online environment instead of repeatedly exchanging copies of a company file.
Cloud-Based Workflows
Online banking connections, invoice management and other cloud-based processes can become part of the daily accounting workflow.
Less Dependence on Local Software
QuickBooks Online removes the need to manage the same type of local software installation and manual update process associated with desktop accounting.
These benefits make QuickBooks Online migration attractive, but the transition should still be planned carefully.
Start With Your QuickBooks Desktop File
Before you migrate QuickBooks Desktop to Online, begin with the source company file rather than immediately opening the migration tool.
The first objective is to make sure the Desktop data is ready.
Intuit's current migration guidance recommends using the latest release of QuickBooks Desktop and verifying the company data before starting. It also specifies a target limit of fewer than 4,000,000 targets for the migration process.
A good preparation process includes:
- Updating QuickBooks Desktop
- Creating an appropriate backup
- Verifying the company data
- Reviewing the company file size
- Checking important lists and transactions
- Reviewing payroll requirements
- Identifying integrations that may need attention
This stage is often overlooked because businesses are eager to get their information into the new system. Spending time here, however, can prevent avoidable complications later.
Review Your Accounting Data Before Migration
Not every business uses QuickBooks in the same way.
One company may primarily use customers, invoices and expenses. Another may rely heavily on inventory, payroll, sales tax, purchase orders and custom reporting.
Before starting a QBD to QBO migration, make a list of the features your business actually depends on.
Pay particular attention to:
Customers and vendors
Check whether names, contact information and outstanding balances are accurate.
Chart of accounts
Review the account structure before migration so you know what should exist in the new environment.
Inventory
Businesses using inventory should understand the QuickBooks Online plan requirements and how their Desktop inventory information will be converted.
Payroll
Payroll requires additional planning because timing and certain payroll-related information can affect the migration.
Reports
Identify the reports your business relies on most. These will become useful comparison points after the transfer.
Sales tax
Businesses collecting sales tax should review how relevant information and payments are handled after migration.
Intuit's current documentation confirms that many lists and transactions transfer, but also identifies features and data that have limitations or do not transfer in the same way.
Understand What Actually Transfers
One of the biggest mistakes during a QuickBooks data migration is assuming that the new QuickBooks Online company will look exactly like the old Desktop company.
It may not.
For example, Intuit currently documents that the chart of accounts, customers, vendors and many transactions can transfer. Certain reports can also move, while items such as the Audit Trail and Memorized Reports do not transfer.
Some Desktop-specific functionality also has limitations.
Inventory, bank-feed setup, QuickBooks Time information, mileage tracking and certain other features require special consideration.
That doesn't mean businesses should avoid migration. It means the migration plan should be based on the actual accounting workflow rather than assuming every Desktop feature has an identical Online equivalent.
Payroll Needs Extra Attention
Payroll users should be especially careful with timing.
Current Intuit guidance recommends waiting 2–3 business days after the last QuickBooks Desktop Payroll run before migrating and completing the migration before the next payroll run.
This is an important planning point for businesses with weekly, biweekly or otherwise scheduled payroll.
Don't choose a migration date simply because it is convenient. Look at:
- Your payroll calendar
- Upcoming tax deadlines
- Month-end closing
- Bank reconciliation
- Financial reporting
- Employee payment schedules
A quieter accounting period is generally easier to manage than trying to perform a major software transition during a critical reporting deadline.
The Actual QuickBooks Migration
Once the company file has been prepared, the migration itself can be started through the available QuickBooks process.
Intuit currently provides migration options through QuickBooks Desktop as well as an online migration tool.
The basic workflow is:
1. Open the Correct Company File
Make sure you're working with the company file that actually needs to be moved.
2. Verify the Data
Run the appropriate verification process and resolve significant errors before continuing.
3. Switch to Single-User Mode
Current Intuit instructions specify that the Desktop software should be in single-user mode before beginning the export/migration process.
4. Start the Migration
Use the available migration option in QuickBooks Desktop or the applicable online tool.
5. Connect the QuickBooks Online Account
Follow the prompts to connect the destination QuickBooks Online company.
6. Allow the Transfer to Complete
Migration time varies according to the size and complexity of the company data. QuickBooks advises keeping the Desktop application running until the move is completed.
Don't Stop Once the Data Has Been Moved
The migration isn't finished just because QuickBooks says the transfer is complete.
The next stage is post-migration verification.
Intuit's current post-migration guidance recommends comparing financial reports between QuickBooks Desktop and QuickBooks Online to confirm that the data transferred correctly.
Start with the reports that matter most to the business.
Compare the Balance Sheet
Check whether the major account balances agree with the original company file.
Compare Profit and Loss
Review income, expenses and net income for comparable reporting periods.
Check Accounts Receivable
Review outstanding customer balances and make sure important invoices and credits appear correctly.
Check Accounts Payable
Compare vendor balances and outstanding bills.
Review Bank and Credit Card Accounts
Make sure balances and transactions are consistent with your records.
Review Inventory
If inventory is part of the business, verify quantities, valuation and relevant product information.
This process gives you an opportunity to identify discrepancies before completely switching your daily workflow to QuickBooks Online.
What About Sales Tax and Other Special Features?
Specialized accounting features deserve their own review.
For example, Intuit currently documents a limitation involving certain sales tax payments during the Desktop-to-Online transition. Some payments may need to be recreated in the QuickBooks Online Sales Tax Center.
Inventory also has plan-specific considerations in QuickBooks Online, while certain Desktop inventory fields do not transfer exactly.
The same principle applies to integrations and third-party applications.
Before switching completely, make a list of every external tool connected to your Desktop workflow and determine whether it has a QuickBooks Online integration.
When Should You Consider Migration Assistance?
Some straightforward businesses may be comfortable handling their own migration by following the official QuickBooks instructions.
More complicated companies may benefit from additional migration planning.
Consider getting professional help if your company has:
- Multiple company files
- Large amounts of historical data
- Payroll
- Inventory
- Complex sales tax requirements
- Numerous integrations
- Customized reporting
- Complicated account structures
- Data errors in the existing Desktop file
Professional assistance can be particularly useful when the goal isn't simply to move data but to make sure the new QuickBooks Online workflow is usable after the transition.
A Simple Migration Checklist
Before you migrate QuickBooks Desktop to Online, use this checklist:
Before migration
- Update QuickBooks Desktop
- Back up important information
- Verify the company file
- Check file size
- Review payroll timing
- Identify important reports
- Review inventory
- Check integrations
During migration
- Open the correct company
- Use single-user mode
- Follow the migration instructions
- Connect the correct QuickBooks Online account
- Keep the Desktop software running until the process is complete
After migration
- Compare the Balance Sheet
- Compare Profit and Loss
- Review customer balances
- Review vendor balances
- Check bank and credit card information
- Review inventory
- Check payroll
- Review sales tax
- Confirm important workflows
Final Thoughts
Moving from Desktop accounting software to a cloud-based system can be a valuable change for a business, but the quality of the transition depends heavily on preparation.
When you migrate QuickBooks Desktop to Online, don't focus only on getting the company file transferred. First understand your existing accounting workflow, identify the information and features that matter most, and learn how those areas behave in QuickBooks Online.
After the migration, compare important reports and verify the accounts before making the new platform your primary accounting environment.
For businesses looking for additional information about QuickBooks Desktop to Online migration, preparation, data transfer and the practical issues involved in the transition, visit Migrate QuickBooks Desktop to Online.
A well-planned migration can make the transition much smoother and give your business a better foundation for working with QuickBooks Online.
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