If you use the desktop version of QuickBooks, you’ve probably heard about their push towards the online version. It has certain advantages over the desktop version, though some companies decide it’s not the right fit for their needs. If you’re still deciding between the two, check out the differences between them (here and here) and figure out what’s best for you. If you’re using QuickBooks Desktop Enterprise and use some of the advanced features, check out the notes under the Enterprise heading in this article to confirm if QuickBooks Online is right for you, or whether to consider cloud-enabled QuickBooks Desktop Enterprise, or QuickBooks Online Advanced.
If you’ve decided to switch to QuickBooks Online, here are the steps you’ll need to walk through to make the conversion. Note: there are slight differences in the routines for QuickBooks Pro or Premier, for QuickBooks Enterprise, or for QuickBooks for Mac. I’ll cover each of them here.
Regardless of which desktop version you’re using, start by preparing your desktop file.
- If you have a version of QuickBooks older than 2016, you’ll need to get a trial of a newer version here and use the trial to convert to QuickBooks Desktop.
- Within your annual version, make sure you’re using the latest release, e.g. R3P or R5P. In the Help menu, select Update QuickBooks. In the popup window, go to the Update Now tab, check the Reset Update box, and click Get Updates. Restart QuickBooks, and install the new release.
- Make sure your file has less than 350,000 targets. Click F2 to get the Product Information window; Total Targets will be on the left side. Targets are lines of details in transactions. When converting to QuickBooks Online, the number of targets is the limiting factor, not the size (MB) of the file. If you have too many targets, see the instructions here for condensing your file. Otherwise, you have the option to import lists and balances without all your transaction detail.
- Reconcile all bank accounts, process payroll, and make any needed adjusting entries prior to conversion.
- Back up your file. In the File menu, click on Back Up Company, and Create Local Backup.
If you’re using QuickBooks Desktop Pro or Premier:
- Export your data. In the Company menu, click Export Company File to QuickBooks Online.
- Click Start Your Export.
- Sign in to your QuickBooks Online company.
- If you track inventory in QuickBooks Desktop, select Yes to bring it over, and specific the as-of date. Select No if you’ll set up items later.
- In the Choose Online Company dropdown menu, select the company you’ll be using.
- Click Continue.
- Enter “Agree” in the text field and click Replace.
- Select Yes, Go Ahead and Replace the Data, then Replace.
If you’re using QuickBooks Desktop Enterprise:
- Export your data. Click Ctrl+1 to open the Product Information window, then press Ctrl+B+Q.
- Click Start Your Export.
- Sign in to your QuickBooks Online company.
- If you track inventory in QuickBooks Desktop, select Yes to bring it over, and specific the as-of date. Select No if you’ll set up items later.
- In the Choose Online Company dropdown menu, select the company you’ll be using.
- Click Continue.
- Enter “Agree” in the text field and click Replace.
- Select Yes, Go Ahead and Replace the Data, then Replace.
If you’re using QuickBooks Desktop for Mac:
- Export your data. In the File menu, click Export, then To QuickBooks Online.
- Click Start Your Export.
- Sign in to your QuickBooks Online company.
- If you track inventory in QuickBooks Desktop, select Yes to bring it over, and specific the as-of date. Select No if you’ll set up items later.
- In the Choose Online Company dropdown menu, select the company you’ll be using.
- Click Continue.
- Enter “Agree” in the text field and click Replace.
- Select Yes, Go Ahead and Replace the Data, then Replace.
Once QuickBooks Online finishes importing your data, you’ll get an email, and you can go in and start using it. You should start by running a P&L and Balance Sheet with the “all dates” parameter in both QuickBooks Desktop and QuickBooks Online, to make sure the data was imported successfully. If you find a discrepancy, you can call the Intuit support team at 1-800-638-8615 to troubleshoot the issue.
Check out this page for pointers on using the main transactions and reports in QuickBooks Online.