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The good news is no, QuickBooks Desktop is not being phased out, at least not yet. That hasn’t stopped Intuit from doing everything in its power to convince you to purchase QuickBooks Online instead. And though Intuit may want you to believe that the desktop and online version of QuickBooks are similar, they are not.
The truth is that while QuickBooks Online can be a suitable replacement accounting software for small or mid-sized businesses bookkeeping needs, its lack of advanced inventory management and reporting options makes it a less than ideal replacement application for larger businesses or current QuickBooks Desktop Enterprise users.
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For example, QuickBooks Enterprise users that typically have complex product inventory and a more extensive company history may find that the desktop version is a better solution for their needs, while smaller businesses with less complicated needs may find a move to QuickBooks Online to be beneficial in terms of cloud accessibility and ease of use.
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If you’ve made the decision to convert your QuickBooks Desktop application to QuickBooks Online, we can guide you through the entire conversion process with these easy steps.
Step 1: Back up your data file
Before migrating to QuickBooks Online, it’s important to back up your company files just in case something goes wrong and you need to restore your QuickBooks Desktop data files. In order to start the back-up process, you’ll need to switch to single-user mode. Once you’re in single-user mode, click on the File drop-down menu. Select the Back Up Company option and then the Create Local Backup option. Once in the local backup option, you’ll want to choose where to save the QuickBooks Desktop company backup file. The system will automatically generate a test backup to ensure that the process is working correctly.
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The total targets are located on the left side of the screen. In order to convert QuickBooks Desktop files to QuickBooks Online, your total number of targets must be 350,000 or less. If the total number of targets displayed is more than 350,000, you have a couple of options. First, you can attempt to condense the number of targets, which will remove all closed targets, which helps to reduce the total number of targets. If this doesn’t work, you’ll only be able to do a partial conversion to QuickBooks Online by transferring lists instead of entire files.
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Step 3: Save your tax liability report
You’ll also have to save your current tax liability report before starting the migration process. Since the details of the report will not be exported during the migration process, you’ll have to enter adjusting entries once the you’ve completed the migration process.
Step 4: Create a QuickBooks Online Account
If you don’t already have a QuickBooks Online account, you’ll need to create one now. Just visit the QuickBooks Online page to see the list of plans available and sign up for the plan that best suits your needs.
Step 5: Start the migration process
With the above steps completed, you’re ready to start the migration process. The process will be different depending on the QuickBooks Desktop version you are using.
If you are using QuickBooks Desktop Pro or QuickBooks Desktop Premier, first you’ll have to open QuickBooks Desktop as the administrator. Once in the system, you’ll select the Company menu from the main menu, and select Export Company File to QuickBooks Online option.
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