Moving from QuickBooks Desktop to QuickBooks Online can make accounting information easier to access across supported devices and locations. However, moving a company from Desktop to Online requires careful preparation to protect your accounting data and make sure the converted company is set up correctly.
QuickBooks Online and QuickBooks Desktop use different systems, so the migration process involves converting or importing supported company data rather than simply copying the Desktop company file to the Online platform. Need an Expert, call +1-888-463-3385.
This guide explains how to prepare for the move, migrate your company, and review the data after the transfer.
Why Move QuickBooks Desktop to QuickBooks Online?
Businesses may consider moving from QuickBooks Desktop to QuickBooks Online for several reasons, including:
- Accessing accounting information through a web browser
- Supporting remote work
- Simplifying access for multiple users
- Reducing dependence on a single desktop computer
- Using cloud-based accounting features
- Connecting supported online applications
- Accessing financial information from different locations
The features available after migration depend on the QuickBooks Online subscription and the data being transferred.
QuickBooks Desktop vs. QuickBooks Online
QuickBooks Desktop stores company data primarily in a local or network environment, while QuickBooks Online stores accounting data in a cloud-based environment.
The two products also have differences in:
- User access
- Reports
- Inventory features
- Payroll
- Banking
- Accountant access
- Integrations
- Preferences
- Custom forms
- Company settings
Because of these differences, some Desktop features or data may not transfer exactly as they appeared in QuickBooks Desktop.
Before Moving QuickBooks Desktop to QuickBooks Online
Preparation is one of the most important parts of the migration process.
Before starting, review your QuickBooks Desktop company file and make sure it is working correctly.
Create a Backup
Create a current backup of your QuickBooks Desktop company file before beginning the migration.
Keep the original Desktop file and backup in a secure location. Do not delete your Desktop company file immediately after migration.
Update QuickBooks Desktop
Make sure QuickBooks Desktop is updated before beginning the migration process.
An outdated installation may cause compatibility or migration problems.
Review Your Company Data
Before moving the company, review important accounting information, including:
- Customer records
- Vendor records
- Chart of accounts
- Bank accounts
- Credit card accounts
- Open invoices
- Bills
- Payments
- Inventory
- Payroll information
- Tax information
- Account balances
Correct obvious data problems before starting the migration.
Check Your QuickBooks Online Subscription
You need an appropriate QuickBooks Online company before completing the migration.
Choose a QuickBooks Online subscription that supports the features your business requires.
For example, businesses with inventory, multiple users, payroll, or specialized accounting requirements should review the available QuickBooks Online features before migrating.
How to Move QuickBooks Desktop to QuickBooks Online
The exact migration process can vary depending on your QuickBooks Desktop version, company file, and the QuickBooks Online subscription.
A typical process involves the following steps.
Step 1: Prepare the QuickBooks Desktop Company
Open the company file you want to migrate.
Make sure you are using the correct company file and that the file opens without errors.
Step 2: Review the Company File
Check your accounts, customers, vendors, transactions, and other important records.
It is better to correct significant data problems before migration rather than trying to resolve them after conversion.
Step 3: Sign In to QuickBooks Online
Open your QuickBooks Online account and sign in using the appropriate administrator credentials.
Create or select the company that will receive the migrated information.
Step 4: Start the Migration
Use the migration or import options available for your QuickBooks Desktop version.
Follow the on-screen instructions to select the company and QuickBooks Online destination.
The available migration options may differ depending on your Desktop edition and version.
Step 5: Authorize the Transfer
QuickBooks may request authorization to move the company data to QuickBooks Online.
Review the company and destination information before confirming the migration.
Step 6: Wait for the Conversion
The conversion time can vary depending on the size and complexity of your company file.
Do not interrupt the migration process unless instructed to do so.
Step 7: Open the QuickBooks Online Company
After the migration is complete, sign in to QuickBooks Online and review the converted company.
Do not immediately assume that every setting and transaction has transferred exactly as it appeared in Desktop.
What Data Can Be Migrated?
The information that can transfer depends on the Desktop version, Online subscription, and migration method.
Commonly migrated information can include:
- Customers
- Vendors
- Employees
- Chart of accounts
- Products and services
- Invoices
- Bills
- Payments
- Bank transactions
- Account balances
- Historical transactions
However, certain features and settings may require additional configuration after migration.
What May Not Transfer Exactly?
Not every QuickBooks Desktop feature has a direct equivalent in QuickBooks Online.
Potential differences can involve:
- Customized reports
- Custom form layouts
- Desktop-specific preferences
- Certain inventory functions
- Certain payroll information
- Advanced accounting settings
- Third-party integrations
- Memorized transactions
- Some attachments or customized data
Before migrating, review the current migration limitations applicable to your QuickBooks products.
Move QuickBooks Desktop Payroll to QuickBooks Online
Payroll requires additional attention during migration.
Payroll records may not transfer exactly as expected depending on your QuickBooks Desktop payroll setup and QuickBooks Online Payroll configuration.
After migration, review:
- Employee information
- Pay rates
- Tax information
- Year-to-date amounts
- Payroll liabilities
- Tax payments
- Payroll forms
- Direct deposit settings
Avoid processing new payroll until you have verified that your payroll information is configured correctly.
Move QuickBooks Desktop Inventory to QuickBooks Online
Inventory is another area that should be reviewed carefully.
Compare:
- Product and service lists
- Quantity on hand
- Inventory asset balances
- Inventory valuation
- Cost information
- Sales transactions
- Purchase transactions
If inventory values differ after migration, investigate the difference before making accounting adjustments.
What Happens to the QuickBooks Desktop File?
Migrating to QuickBooks Online does not mean you should immediately delete your Desktop company file.
Keep the original Desktop company file and a backup for your records.
The Desktop file may be useful for:
- Historical reference
- Comparing reports
- Reviewing old transactions
- Resolving migration questions
- Maintaining business records
Follow your organization’s record-retention requirements when deciding how long to retain accounting files.
Verify Your QuickBooks Online Data After Migration
After the conversion, compare important reports between Desktop and Online.
Useful reports to review include:
Balance Sheet
Compare account balances and total assets, liabilities, and equity.
Profit and Loss
Compare income, expenses, and net income for the same accounting period.
Accounts Receivable
Review outstanding customer invoices and receivable balances.
Accounts Payable
Check unpaid bills and vendor balances.
Trial Balance
Compare account balances to identify differences that may require investigation.
Inventory Reports
If your business uses inventory, compare quantities and valuation information.
Reconcile Bank Accounts After Migration
Do not assume that bank accounts are automatically reconciled exactly as they were in QuickBooks Desktop.
Review each bank and credit card account in QuickBooks Online and compare the beginning balances with your Desktop records.
If necessary, reconcile the accounts using the appropriate statements and accounting records.
Review QuickBooks Online User Permissions
QuickBooks Online may require you to configure user access again.
Review:
- Primary administrator
- Company administrators
- Standard users
- Accountant access
- Payroll access
Give each user only the permissions required for their responsibilities.
Reconnect Third-Party Applications
If your business uses third-party applications with QuickBooks Desktop, check whether they support QuickBooks Online.
Examples may include:
- Payment applications
- Inventory systems
- E-commerce platforms
- Time-tracking applications
- Expense management tools
- Payroll applications
You may need to establish new connections after migration.
Common Problems When Moving QuickBooks Desktop to Online
Migration Option Is Not Available
The migration option may depend on the QuickBooks Desktop edition, version, company-file configuration, and QuickBooks Online subscription.
Verify that your products meet the applicable migration requirements.
Company File Will Not Import
A damaged or problematic company file can interfere with migration.
Run appropriate QuickBooks company-file diagnostic procedures and resolve serious file issues before trying again.
Data Does Not Match After Migration
Differences may occur because QuickBooks Desktop and QuickBooks Online handle certain features differently.
Compare reports from the same date range and investigate differences individually.
Payroll Data Is Different
Payroll data requires special attention because payroll setup and tax information may be handled differently between products.
Review payroll balances and employee information before processing additional payroll.
Inventory Balances Are Different
Check product quantities, inventory asset accounts, purchases, sales, and valuation reports to identify where the difference originated.
Tips for a Successful QuickBooks Desktop to Online Migration
Follow these best practices:
- Create a complete Desktop backup.
- Update QuickBooks Desktop.
- Review and clean up company data.
- Confirm the QuickBooks Online subscription.
- Verify migration eligibility.
- Avoid making unnecessary changes during the migration.
- Keep the original Desktop company file.
- Compare important financial reports after migration.
- Review payroll and inventory carefully.
- Reconnect required third-party applications.
- Check user permissions.
- Reconcile important accounts.
Frequently Asked Questions
Can I move QuickBooks Desktop to QuickBooks Online?
Yes, supported QuickBooks Desktop companies can be migrated to QuickBooks Online when they meet the applicable requirements. The exact process depends on the Desktop version, company file, and Online subscription.
Will everything transfer from QuickBooks Desktop to Online?
Not necessarily. Some Desktop-specific features, settings, reports, and integrations may not transfer exactly. Review the applicable migration limitations before starting.
Should I keep my QuickBooks Desktop file after migration?
Yes. Keep the original company file and a backup for historical reference and comparison after migration.
Will my QuickBooks Desktop payroll transfer to QuickBooks Online?
Payroll migration depends on your specific Desktop payroll setup and the QuickBooks Online Payroll configuration. Review employee, tax, liability, and year-to-date information after migration.
Can I use QuickBooks Desktop and QuickBooks Online at the same time?
You should carefully manage data if both products are being used during a transition. Transactions entered separately into each system will not automatically remain synchronized simply because the same business information was migrated.
Conclusion
Moving QuickBooks Desktop to QuickBooks Online requires preparation, careful migration, and thorough verification. Before starting, create a backup, update QuickBooks Desktop, review your company data, and confirm that your QuickBooks Online subscription meets your business requirements.
After migration, compare financial reports, review customers and vendors, verify payroll and inventory, reconcile important accounts, and reconnect supported third-party applications. Keep your original QuickBooks Desktop company file and backup rather than deleting them immediately.
A structured migration and post-migration review can help you identify differences early and establish accurate accounting records in QuickBooks Online. Need an Expert, call +1-888-463-3385.
