Condense your QuickBooks Desktop file for import to QuickBooks Online

Make sure everything's properly set up and backed up before condensing and importing your company file. Here's how:

• Backup or archive a copy of your original company file so you can restore it later. 
• Make sure to store your files in a safe place.
• The Desktop file must be less than the following limits:

• QuickBooks Desktop Enterprise 2021 and newer: 1,200,000 targets.
• QuickBooks Desktop Pro and Premier 2018 and newer: 1,200,000 targets.
• QuickBooks Desktop Enterprise 2020 and older: 350,000 targets.
• QuickBooks Desktop for Mac: 350,000 targets.
• QuickBooks Desktop Pro and Premier 2018 and older: 350,000 targets.

Note: Remember these when you condense a file.

• QuickBooks 2019 and newer: The overall file size gets reduced and your data gets saved.
• QuickBooks 2018 and older: Some transactions get archived and  become journal entries.
• Journal entries generate targets as well.
• Reports may not match after condensing a file.
• QuickBooks automatically creates an archived copy of your company file. In the original folder it’s saved in, it appears as [Your Company File Name] Copy MM/DD/YY.
• If you’re having performance issues, try the Condense Data utility to fix it.

File size (MB) doesn't matter when you import to QuickBooks Online, only the total targets. Here’s how you can check for it:

1. Open your QuickBooks Desktop company file and access Product Information:
   • Windows: Press F2 on your keyboard.
   • Mac: Press CMD (?) +1 on your keyboard.
2. Check the Total Targets.

   

1. Go to the QuickBooks File menu, select Utilities, then select Condense Data.
2. Select Yes in the message Budget data may be moved during cleanup. Do you want to continue anyway?
3. From the Condense Data window, select Transactions before a specific date.
4. Select a date in the Date field. QuickBooks will remove closed transactions on or before the date you choose.
   Note: If you track inventory, it’s best to make the date the last day of the month. That way, your average cost for items remains correct.
5. Select Next.
6. Select a method to summarize the transactions you're removing, then select Next. If you're not sure, select Help me choose.
7. You can select any of the check boxes for the dialog boxes that follow, then select Next.
8. Select Begin Condense.

1. From the QuickBooks File menu, select Utilities, then select Clean Up Company Data.
2. Select Yes below the message Budget data may be moved during cleanup. Do you want to continue anyway?
3. Select Remove Transactions from a certain date.
4. Select a date in the Date field. QuickBooks will remove closed transactions on or before the date you choose.
5. Select Next.
6. You can select any of the checkboxes under Select Additional Criteria for Removing Transactions, then select Next.
7. Select any of the checkboxes under Select Unused List Items to Remove, then select Next.
8. Select Begin Cleanup.
9. Select OK below the message about making a backup before cleaning up the data file.

1. Close all your QuickBooks windows.
2. Select File, then Utilities, and then Condense Data.
   Note: If you track inventory, it’s best to make the date the last day of the month. That way, your average cost for items remains correct.
3. Select OK. A message appears telling you that QuickBooks will make a backup file before it condenses the transactions.
4. Select OK to create the backup file.

Note: The backup file helps keep a record of the transactions that QuickBooks removes from your company file.

1. Select the File menu then select Create Copy.
2. Select Portable Company File, then select Next.
3. Save the portable company file to your desktop or create a new folder on your computer.
   • Intuit recommends you save it to a CD, USB flash drive, or other removable storage device.
   • The portable company file is saved with a .qbm extension. This provides a safeguard against data corruption or data loss if your system becomes compromised.

When prompted to close your company file, select OK.

Important: If you select Cancel, QuickBooks exits the wizard and doesn't create the portable file.

After you create a portable company file (.qbm), you can restore it on the destination computer. QuickBooks decompresses the file and then rebuilds your company file, which takes a few minutes.

1. Go to the File menu, then select Open or Restore Company.
2. Select restore a portable file, then select Next.
3. Locate the folder where you saved the portable file.
4. Select the portable file, then select Open.
5. Select Next. This opens a Save Company File As window.
6. To prevent overwriting your existing company file, rename the company file. Enter a new name in the File name field.
7. After renaming the file, select Save. QuickBooks converts the portable file to a regular company file with a .qbw extension.
8. You’ll be prompted to perform a backup of the new company file. Follow the wizard to complete the backup.

Tip: Check the total targets again. 

• If the file exceeds the target limit above, repeat the process to remove as much data as possible. 
• It’s normal that the .qbw file created from the portable company file becomes smaller than your condensed .qbw file.