The ability to access your business’s financial records from anywhere via the Internet is causing many to want to make the jump to QuickBooks Online; and that’s why this article will focus on converting from Desktop to QuickBooks Online made easy.
There have been a lot of improvements made to QuickBooks Online recently, and it is easier than ever to convert your Desktop data to a QuickBooks Online account. The first step is to create a QuickBooks Online account. If you are an accountant, there are a few choices to help your clients make the move:
1. The client can create the account and then send you an “accountant user” invitation.
2. You can add your client to your Wholesale Billing account and offer a discount while building the cost of a subscription into your fees.
3. You can also order QuickBooks Online from an Intuit Reseller at a discount and have your client pay for the subscription. With this option, the Reseller remains the Master Admin until the new QuickBooks Online account is setup, then the client is invited and the Master Admin duties are transferred.
Now that the subscription to QuickBooks Online is ready, you will need to prepare your Desktop files for conversion.
Converting from Desktop to QuickBooks Online Made Easy
Before starting the conversion, you will likely need to do some necessary clean ups within the .QBW file. If you are a business owner, it would be wise to hire a professional to do this for you.
Once the clean up is done, make sure it is possible to convert your file. You can check this by opening the file in Desktop, clicking F2, and looking at the total number of targets. If the total is less than 350,000 you will be able to convert. If it is more, you will need to condense the file.
If your file is ready to convert, you need to verify the data. Do this by selecting “File,” then “Utilities,” followed by “Verify Data.” The official Intuit recommendation is to go through the process of verification and rebuilding only if prompted to do so. However, we recommend that you should always go through this process to make sure no data base links are broken. This helps reduce potential problems before converting.
Now that the data is verified, open the file, and choose “Company,” followed by “Export Company File to QuickBooks Online” located at the bottom of the menu. You can now simply follow the prompts.
You will login to QuickBooks Online.
Select the correct account.
If your account includes Inventory, you will need to enter the date you began using the FIFO valuation method. Note – Premier and QuickBooks Pro use the Average Cost methodology.
QuickBooks Online will then copy your files onto the Internet.
Finally you will get a screen notification that the file is being transferred, followed by an email confirmation when it’s complete.
Making the Conversion from Desktop with Multiple Currencies to QuickBooks Online
Another recent update is the ability for Desktop users to convert a file that includes multi-currency. This used to be impossible. The only difference with this type of conversion is that you will need to confirm your home currency during the conversion process. The rest of the process will be the same.
An important note is that once multi-currency is chosen you won’t be able to turn the preference off. Be sure you want to use it prior to the conversion.
Making the Conversion from QuickBooks Enterprises Solutions to QuickBooks Online
To get started with this conversion you need to open the file you would like to convert, then click the F2 button on your screen.
As soon as the Product Info screen appears, click on CTRL + b q.
Then close out the Product Info screen by clicking “OK” at the bottom of the screen.
The Export Wizard will appear and you will follow the prompts. Simply:
1. Login to QuickBooks Online
2. Select the appropriate account
3. Answer the questions
4. Wait for the confirmation to appear
Verify the Data
The final step in converting from Desktop to QuickBooks Online made easy is to make sure all the data matches.
It is wise to compare your Balance Sheet and Profit & Loss reports between the online and desktop versions. Make sure all the reports are set to Accrual basis and All Dates.
It is important to note that the Desktop and QuickBooks Online Inventory Asset and Cost of Goods won’t match after the conversion, because of the jump to FIFO from Average Cost inventory valuation.
It’s also necessary to verify all the open transactions within the Accounts Payable and Accounts Receivable accounts.
Finally, you need to remember that you will likely see several tax payable accounts within your Chart of Accounts after the conversion. One account will be listed in QuickBooks Online for each of the Sales Tax Payable accounts you had in your Desktop version. QuickBooks Online (by default) will also create a Sales Tax Agency Payable account for every sales tax jurisdiction listed in the Desktop file. You can remedy this by making the Desktop accounts inactive and setting up new accounts in the Online version to track sales tax. Just make sure you zero out all the account balances. QuickBooks Online requires all sales tax payments to be made via the Sales Tax Center, which can be accessed from the left side menu.