Before You Start - The QuickBooks Guide to Converting QuickBooks Desktop to QuickBooks Online
The QuickBooks Guide to Converting QuickBooks Desktop to QuickBooks Onlineis foranyone converting from QuickBooks Desktop (Pro or Premier) to QuickBooks Online. The full guide can be downloaded from the link above.
Before we begin, let's go over a few important stipulations and requirements you'll need to consider.
Should I convert from QuickBooks Desktop?
Converting from QuickBooks Desktop to QuickBooks Online may mean significant changes to your workflow - we’re here to help you prepare!
If you need any of the features listed below for your business, check our Quick Conversion Reference to decide if converting to QuickBooks Online is right for you:
Average cost for Inventory
Batch Transaction Processing
Complex Sales Ordering
Advanced Reporting features only available in QuickBooks Desktop
(These features arenotsupported in QuickBooks Online)
The entire conversion process can be done in as little as an hour. However, it depends on the size of your company file and how much preparation is required to complete outstanding tasks, such as payroll. If your file is complicated or has lots of moving pieces, plan ahead for more time. Though uncommon, the conversion can take up to 24 hours for extremely large
Time is a factor - you can only convert QuickBooks Desktop data within the first 60 days of your QuickBooks Online company start date. If you’re beyond 60 days, you will need to cancel your existing QuickBooks Online account and start a new subscription (learn more).
Don’t know the size of your current file? With your QuickBooks Desktop company file open, press F2 to check how many targets (i.e. various data points such as transactions, inventory items, and attachments) are in your file. If you are over 350,000 targets, you will need to trim down your file. To learn more, see “Condense your QuickBooks Desktop file.”
Account names, item descriptions, and memos (among other data points) have strict character limits (see the complete list). You may need to make a few adjustments prior to your conversion.
QuickBooks Online has no file size or transaction limit, but there are minimum system requirements. The program uses an “as needed” processing method to maintain optimal performance, meaning your company file size won’t impact performance.
Do you currently handle multiple company files? In QuickBooks Desktop, you can create and manage multiple company files. In QuickBooks Online, each company requires a separate subscription. If you need to run accounts for eight different companies in QuickBooks Online, you will need eight subscriptions. You will be able to manage all of these files from the same login.
How do you currently manage your inventory? QuickBooks Desktop uses the average cost method to calculate your QuickBooks Online uses the “First-in-first-out (FIFO)“ inventory management method. If you’re unsure whether this will work for your, reach out to your accountant.
Do you plan to use Revel Point of Sale to track your inventory? If so, you’ll need to complete a few additional steps to ensure everything is connected (learn more).
If you already turned on Payroll in QuickBooks Online before converting, do not attempt to convert your Desktop file on your own - please contact us! We’ll need to follow a special workflow to ensure your Payroll is set up