Frequently Asked Questions: QuickBooks Desktop to Online Migration
Thinking about switching from QuickBooks Desktop to QuickBooks Online? You're not alone! This move to cloud accounting is becoming increasingly popular. However, the migration process can seem daunting. Let's answer some common questions to put your mind at ease.
1. What specific data won’t transfer when I migrate from QuickBooks Desktop to Online?
While most data transfers smoothly, some items might need manual attention:
Reconciliation reports need to be redone in QBO.
Recurring transactions should be recreated in QBO.
The entire audit trail isn’t transferred automatically; export it for your records.
Memorized and custom reports need to be rebuilt in QBO.
Depending on your setup, payroll, and budgeting data might not fully transfer.
Those details might need manual adjustments if you use Advanced Inventory in QuickBooks Desktop Enterprise.
2. How will my custom charts of accounts and user-defined fields be handled during migration?
QBO attempts to import your custom chart of accounts, but merging or adjustments might occur to align with QBO's structure. Review and adjust it after migrating. User-defined fields generally don't transfer automatically and must be recreated manually in QBO.
3. How should I ensure my data is accurate and ready before migrating?
Before starting, prioritize data integrity:
Create a complete backup of your QuickBooks Desktop data.
Reconcile all your accounts to the most recent period.
Clean your data by removing unused accounts, customers, vendors, and items.
Make sure you're using the latest version of QuickBooks Desktop.
Run vital financial reports like Profit & Loss, Balance Sheet, and Trial Balance – you'll want these for comparison after migrating.
Use the data verification tools in QuickBooks Desktop to check for and fix any errors.
4. How can I be sure all my transactions and balances have migrated to QBO correctly?
After migrating, take these steps to verify your data:
Compare those vital financial reports you generated from QuickBooks Desktop and QuickBooks Online. The numbers should match.
Carefully review your customer, vendor, item, and account lists to ensure accuracy.
Perform bank reconciliations in QBO to double-check your balances.
Randomly select and review a few detailed transactions to ensure everything is transferred correctly.
Verify that user permissions and roles are set up correctly in QBO.
5. Are there any limitations to what the QuickBooks migration tool can transfer?
While the migration tool is designed to be comprehensive, be aware of these potential limitations:
List and Transaction Limits: QBO might limit the number of list entries or transactions it can handle, which could impact larger businesses with extensive data.
Payroll Data: If you’re using an older version of QuickBooks Desktop or a non-standard payroll service, you might need to enter details manually.
Custom Fields: These often require manual recreation.
Inventory Data: Complex inventory setups, like those using serialization or lot tracking, might need adjustments.
Audit Trail: This must be fully transferred; export it separately from QuickBooks Desktop for your records.
Complex Transactions: Transactions involving multiple currencies or intercompany transactions, among others, might require manual review and adjustment in QBO.
6. How should I handle payroll information and liabilities during the migration?
Payroll data needs special attention:
Backup: Create a separate backup of all your payroll data before you begin.
Review Setup: Double-check the accuracy of your pay items, deductions, tax settings, and employee details in QuickBooks Desktop.
Export Reports: Generate and save key payroll reports, such as summaries, details, employee earnings, and liability balances, for your records.
Manual Entry: Prepare to manually enter or adjust employee information, payroll history, and tax details in QBO.
Verify Liabilities: After migrating, carefully review your payroll liabilities to ensure everything is correct and paid.
Payroll Service Integration: If you're using QuickBooks Online Payroll, follow their specific setup guide for a smooth transition.
Timing: To minimize disruption, consider migrating at the end of a quarter or fiscal year when payroll reporting is complete.
7. How does QuickBooks Online handle multi-currency transactions, and are there any limitations?
QBO offers multi-currency functionality, but there are a few things to keep in mind:
Enabling: You’ll need to allow multi-currency in your QBO settings. This cannot be undone later.
Exchange Rates: QBO updates exchange rates automatically daily, but you can manually update them if necessary.
Currency Assignment: You can assign specific currencies to customers, vendors, bank accounts, and transactions, but you can't change the currency assigned to an entity later.
Here are some limitations to be aware of:
Currency Conversions: You might need to adjust transactions for exchange rate differences manually.
Reporting: Financial reports in QBO are displayed in your home currency. Multi-currency reports might not be as detailed as you’re used to in QuickBooks Desktop.
Revaluation: QBO doesn’t automatically revalue foreign currency balances. You’ll likely need to make manual adjustments at the end of each accounting period.
Feature Restrictions: Some QBO features, like progress invoicing or recurring transactions, might have limitations or require workarounds when using multiple currencies.
8. What happens to my inventory and assembly items when I migrate?
Tracked Inventory: QuickBooks Online Plus and Advanced support inventory tracking, but its setup differs from QuickBooks Desktop.
Assembly Items: QBO doesn't directly support assembly builds like QuickBooks Desktop. You might need to use product bundles or a third-party app for similar functionality.
Here’s a general overview of migrating inventory:
Prepare Your Data: Make sure your inventory list in QuickBooks Desktop is clean, organized, and accurate.
Export from Desktop: Use Excel or CSV to export your inventory lists and details from QuickBooks Desktop.
Enable in QBO: Go into your QBO settings and enable inventory tracking before you import your data.
Import to QBO: Use QBO’s import feature and their provided templates to import your inventory items.
Set Opening Balances: Manually enter opening balances for each inventory item to ensure your starting numbers are correct.
Create Bundles/Alternatives: Set up any bundles in QBO to replace assembly items or explore third-party apps if needed.
Verify: Once you’re in QBO, double-check your inventory quantities and values against your QuickBooks Desktop reports. Make adjustments as needed.
9. Will my customer and vendor lists transfer automatically, and what if they don’t?
In most cases, your vendor and customer lists will transfer automatically. If you run into trouble:
Export Your Lists: Go into QuickBooks Desktop and export your vendor and customer lists to Excel or CSV files.
Clean Up Your Data: Review your exported files before importing and fix any duplicates or errors. Ensure that all the information is present and formatted correctly.
Import Your Lists: QBO has an import feature. Use it to upload your cleaned-up customer and vendor lists. Follow their instructions carefully.
Double-Check: Once imported, look at your vendor and customer lists in QBO to confirm that everything transferred correctly. Fix any mistakes manually.
10. How does migration handle inactive accounts?
The good news is that your inactive accounts will be transferred from QuickBooks Desktop to QuickBooks Online and will remain inactive, preserving your transaction history.
Here's what to do about inactive accounts:
Review and Clean: Review your inactive accounts in QuickBooks Desktop before you migrate. If there are accounts you no longer need, consider deleting them (if appropriate) or merging them with other accounts.
Check After Migration: Once in QBO, double-check that the inactive accounts are still marked inactive. You can find this in your Chart of Accounts.
Reactivating: If you need to reactivate an account in QBO, you can easily edit the account details and switch it back to "active."
11. What will happen to my custom invoice and report templates?
Unfortunately, custom templates from QuickBooks Desktop don't transfer directly to QuickBooks Online.
Invoice Templates: You must recreate your custom invoice templates in QBO. The good news is that QBO has a "Custom Form Styles" feature that gives you plenty of design flexibility.
Custom Reports: Similar to invoice templates, you must rebuild any custom reports from scratch in QBO. QBO has robust reporting tools, but complex reports may require a slightly different approach.
Here are some extra tips for custom templates and reports:
Make Backups: Before you migrate, make sure you have copies of your QuickBooks Desktop templates and reports saved somewhere safe.
Don't Be Afraid to Ask: QuickBooks Online has great support resources, including tutorials and customer service, so don’t hesitate to use them if you need help.
12. What's the best way to handle account reconciliations before migrating to QBO?
Reconciling your accounts before you migrate is essential:
Complete All Reconciliations: Make sure every QuickBooks Desktop bank and credit card account is reconciled to your most recent statement.
Save Reconciliation Reports: Once you've reconciled, generate and save a copy of each reconciliation report for your records.
Note Outstanding Items: If you have any outstanding checks, deposits, or other transactions that haven't cleared yet, note them to ensure they’re accounted for in QBO.
Backup Everything: Before you start the migration, create a complete backup of your QuickBooks Desktop file, including all your reconciliation data and reports.
13. I have a lot of custom reports in QuickBooks Desktop. Can I easily recreate them in QBO?
Recreating custom reports takes a little effort, but QBO makes it manageable:
Make a List: Write down all the custom reports you use regularly in QuickBooks Desktop. Note any special filters, layouts, or customizations you’ve applied.
Start with Standard Reports: In QBO, go to the Reports menu and find the standard report closest to your custom one.
Customize: QBO lets you filter, group, and format reports. Take your time and adjust the standard report to match your QuickBooks Desktop version as closely as possible.
Save Your Work: Once you're happy with your customized report in QBO, save it with a new name so you don’t have to recreate it every time.
Schedule Reports (Optional): QBO has a handy "Scheduled Reports" feature. Set up any reports you need regularly to be automatically emailed to you.
14. Will my audit trail be preserved in QuickBooks Online? What steps should I take?
While QBO has its audit log, the complete historical trail from QuickBooks Desktop isn’t transferred. Here’s what you should do:
Export (Desktop): Before you migrate, generate and export a complete audit trail report from QuickBooks Desktop. Save it as a PDF or Excel file for your records.
Enable (QBO): QBO has an “Audit Log” feature. Make sure this is enabled in your settings.
Review Initial Entries (QBO): After migrating, review the QBO Audit Log. You should see entries showing your data migration.
Monitor regularly (QBO): Get in the habit of checking the Audit Log regularly to monitor changes.
Educate Users: Make sure everyone on your team who uses QBO understands the importance of the audit trail and how to access it.
Backup Regularly: Like any critical data, back up your QBO Audit Log periodically.
15. It's overwhelming to consider matching all my QuickBooks Desktop settings in QBO! Any advice?
Take it step-by-step, and don’t be afraid to consult QBO’s help resources:
Company Information: Start with the basics – update your business name, address, logo, fiscal year, and accounting method under "Account and Settings."
Chart of Accounts: Review your chart of accounts in QBO. Ensure the account names, types, and numbers match your Desktop version. If you use sub-accounts, set those up too.
Preferences: Fine-tune your sales and invoicing settings (payment terms, custom forms, etc.), expense and bill payment preferences, tax settings, and banking connections to mirror your usual workflow.
User Management: Invite your team members to QBO and ensure they have the correct roles and permissions.
Templates: You can recreate your custom invoice, estimate, and sales receipt templates using the “Custom Form Styles” in QBO.
Automate: Use QBO’s tools to automate tasks like sending reminders, creating recurring transactions, and scheduling reports.
16. How long does migrating to QBO usually take, and what can impact the timeframe?
It depends! It can take anywhere from a few hours to a few days. Here are the most significant factors that affect migration time:
Company Size: Larger companies with more extensive transaction histories, many accounts, and complex data structures will naturally take longer to migrate than smaller, more straightforward businesses.
Data Cleanliness: Cleaning up your QuickBooks Desktop data before you migrate will speed things up considerably. This means eliminating duplicate entries, archiving old stuff, and ensuring accurate numbers.
Customization: If you have many custom invoice templates, reports, and other settings, it may take longer to recreate them in QBO.
17. Any tips for making the migration as smooth as possible?
Absolutely! Here are some best practices:
Preparation is Key:
Back up everything in QuickBooks Desktop.
Clean up your data!
Reconcile all your accounts.
Export vital financial reports.
Plan Carefully:
Migrate during your slowest business period.
Make a detailed migration plan and share it with your team.
Follow the Steps:
Use the official QuickBooks migration tool and its instructions.
Make sure your versions of QuickBooks Desktop and Online are compatible.
Verify, Verify, Verify:
After migrating, carefully compare financial reports, lists, and transactions.
Reconcile all your bank and credit card accounts in QBO.
Training and Support:
Train your team on QBO.
Don’t hesitate to use QBO’s support resources or hire a QuickBooks ProAdvisor if you need help.
18. Can you walk me through the steps of a manual migration?
Manual migration is more involved but may sometimes be necessary. Here's a general outline:
1. Prep Your QuickBooks Desktop Data
Update to the latest version.
Make a backup.
Complete all account reconciliations.
Clean up your data.
Generate and export vital financial reports (Profit & Loss, Balance Sheet, Trial Balance).
2. Set Up Your QBO Account
Create your QBO account and choose your plan.
Enter your basic company information (name, address, fiscal year).
3. Export Data from QuickBooks Desktop
Export your customer and vendor lists.
Export your Chart of Accounts.
Export lists of your Products and Services.
If you’re migrating all transactions, export those too.
4. Import Your Data Into QBO
Import each list you exported (customers, vendors, chart of accounts, products & services).
Manually enter opening balances for all your accounts and inventory items.
If needed, manually enter or import your historical transactions.
5. Verify Everything in QBO
Compare your QuickBooks Desktop and QBO financial reports to ensure accuracy.
Reconcile your bank and credit card accounts.
Make any necessary adjustments if you find discrepancies.
19. How should I prep my QuickBooks Desktop data to get the best migration results?
Getting your data squeaky clean is the most important thing you can do for a smooth migration:
Remove Duplicate Entries: Comb through your customer, vendor, and item lists for duplicates and merge or delete them.
Archive Old Data: Get rid of old or unused accounts, customers, vendors, and inventory items. You can archive them if you need to keep a record.
Verify Accuracy: Double-check all your transaction details and balances to ensure everything is accurate and up-to-date.
Complete Reconciliations: Reconcile all your bank and credit card accounts to the most recent statement.
Use Data Verification Tools: QuickBooks Desktop has built-in tools (“Verify Data” and “Rebuild Data”) – run these to catch and fix data issues.
Back-Up: Always back up your data before you make big changes, including migrating.
20. What are the most common things to watch out for during a manual migration?
Here are some pitfalls to avoid:
Incomplete Data: Before starting the import process, ensure you’ve exported all the necessary data from QuickBooks Desktop.
Mapping Errors: When importing lists, double-check that the columns from your spreadsheet are mapping to the correct fields in QBO.
Custom Fields: QBO won’t automatically transfer your custom fields from QuickBooks Desktop, so you must recreate them manually.
Reconciliations: Make sure you’ve reconciled all your accounts in QuickBooks Desktop before you migrate.
Verification: Don’t skip the post-migration verification! Always compare reports and reconcile accounts to catch any issues early on.
21. I have a complex inventory system. How should I handle that during the migration?
Here's a breakdown of how to handle a complex inventory setup:
Before Migrating:
Get Organized: Reconcile counts, fix discrepancies, and update quantities and values to ensure that your inventory data in QuickBooks Desktop is clean.
Export Detailed Lists: Export your complete inventory lists, including item names, SKUs, quantities, costs, and sales prices—anything important to your tracking.
Advanced Inventory Users (QB Enterprise): If you rely on QuickBooks Desktop Enterprise’s Advanced Inventory features like serial or lot tracking, QBO doesn’t have direct equivalents. You might need to explore third-party apps integrating with QBO or consider alternative inventory tracking methods.
During Migration:
Enable Tracking: Go into your QuickBooks Online settings and enable inventory tracking.
Import Carefully: Use SaasAnt or QBO’s import feature and templates to bring over your inventory data, ensuring everything aligns correctly.
Set Opening Balances: After importing, manually enter opening balances for each inventory item in QBO. This ensures your starting point is accurate.
After Migrating:
Verify, Verify, Verify: Double and triple-check your inventory levels in QBO by comparing them to your QuickBooks Desktop reports. Look for any discrepancies and fix them manually.
Assemblies: If you use assembly items in QuickBooks Desktop, you might need to create them as bundles in QBO or look into third-party apps for more robust assembly management.
22. My business uses multiple currencies. What do I need to know about migrating that data?
Here's how to approach multi-currency migration:
Before Migrating:
Enable in QBO: Go to your QBO settings and turn on the multi-currency feature. Remember, you can’t turn this off once it’s enabled!
Verify Currency Assignments: In QuickBooks Desktop, double-check that all your customers, vendors, and accounts have the correct currency assigned to them.
During Migration:
Export from Desktop: Export lists of your customers, vendors, and accounts, ensuring the currency assignments are included in your export.
Import into QBO: Use QBO’s import features to import your lists and carefully check that the currency assignments are correct.
Double-Check Exchange Rates: If you’ve used specific exchange rates in QuickBooks Desktop, update those in QBO.
After Migrating:
Scrutinize Transactions: Review all your multi-currency transactions in QBO to ensure they are imported correctly and that the exchange rates are correct.
Reconcile, Reconcile, Reconcile: Reconcile your foreign currency accounts to confirm that the balances match.
Keep an Eye on Rates: Exchange rates fluctuate, so make it a habit to monitor and update them in QBO.
23. I have a massive amount of data in QuickBooks Desktop. Do you have any tips for migrating a huge file?
Try these strategies:
Phased Migration:
Migrate your most recent fiscal year’s data to quickly get up and running in QBO.
Once things are stable, gradually import older data in stages.
Selective Migration:
Prioritize importing your most critical data, such as open invoices, unpaid bills, and essential account balances.
For older transactions, think about summarizing them (e.g., as monthly or quarterly journal entries) instead of importing every single one.
Essential Tips for Large Migrations:
Clean Your Data: Before you migrate, spend extra time cleaning and organizing your QuickBooks Desktop data. It'll make the whole process much smoother.
Verify Frequently: After each phase or batch of data you migrate, compare financial reports and reconcile accounts to catch and fix any errors early on.
24. My business uses industry-specific features in QuickBooks Desktop (like job costing or fund accounting). Will those transfer over?
Not directly. You’ll need to take some extra steps:
Job Costing (For Contractors):
Export: Export all your job-related data from QuickBooks Desktop, including customer jobs, estimates, job costs, etc.
Use Projects: In QBO, utilize the “Projects” feature to manage your job costing. Import your job data and recreate your estimates and budgets.
Mapping: When importing, double-check that your job-related fields map correctly and recreate any custom fields.
Fund Accounting (For Nonprofits):
Export Fund Data: Export your fund and class data, making sure every transaction has the correct tag.
Classes & Locations: Set up classes and/or locations in QBO to represent your different funds.
Import & Tag: Import your transactions into QBO and tag them with the appropriate classes or locations.
25. Help! My QuickBooks Desktop data file has errors. What do I do?
Before you even think about migrating, you need to address those errors:
Verify: Use the “Verify Data” tool in QuickBooks Desktop to pinpoint any data issues.
Rebuild: Use the “Rebuild Data” tool if errors are found. Repeat these steps until the tool reports no errors.
Clean: If the tool can’t fix everything, you’ll need to correct errors in your QuickBooks Desktop file manually.
Archive: To simplify things, archive or delete outdated or unnecessary data.
Backup, Backup, Backup: Create multiple backups of your QuickBooks Desktop file throughout this process.
Test Migration: Test migration with a copy of your QuickBooks Desktop data. This will help you identify and fix problems before you migrate your live data.
26. What are the must-do tasks after migrating to QBO to ensure everything is correct?
Once you've made the switch, take these steps to ensure a successful transition:
Triple-Check Your Numbers:
Financial Reports: Compare vital financial reports (Profit and loss, Balance Sheet, Trial Balance) from QuickBooks Desktop and QBO. They should match perfectly.
Account Balances: Manually check necessary account balances like bank accounts, credit cards, receivables, and payables.
Reconcile all your bank and credit card accounts in QBO immediately.
Review Everything:
Lists: Go through your customer, vendor, product, and service lists to catch any errors.
Transactions: Spot-check various transactions to ensure the details are correct.
Set Up Users:
Invite all your team members to QBO and give them the appropriate roles and permissions.
Double-check user access levels to keep your data secure.
27. After migrating, How do I thoroughly reconcile my QuickBooks Desktop and Online data?
Here’s a breakdown:
Generate Your Reports:
Generate your key financial reports (P&L, Balance Sheet, Trial Balance) in QuickBooks Desktop as of your migration date.
Generate the same reports in QuickBooks Online.
Start Comparing:
Accounts: Go line by line and compare the balances of each account in your Chart of Accounts between your QuickBooks Desktop and QBO reports.
Transactions: Verify that all your key transactions (invoices, bills, payments, journal entries) are in QBO and the amounts match.
Don't Forget Bank Reconciliations:
In QuickBooks Online, reconcile your bank and credit card accounts using the Reconcile tool.
Match your QBO transactions to your bank statements, and add or adjust transactions as needed.
Investigate and Correct:
If you find discrepancies, dig deeper to understand why they exist. Check transaction details, review your import process, and make any necessary adjustments in QBO.
28. I had bank feeds set up in QuickBooks Desktop. How do I reconnect everything in QBO?
Reconnecting your bank feeds is pretty straightforward:
Disconnect (if needed): If you’re still connected to online banking in QuickBooks Desktop, disconnect those accounts.
Go to Banking: In QBO, click the “Banking” tab.
Add Your Accounts: Click “Add Account” and search for your bank or credit card company.
Sign In and Connect: Follow the prompts to enter your bank login info and connect your accounts to QBO.
Map Accounts: Make sure you map each connected bank and credit card account to the correct corresponding account in your QBO Chart of Accounts.
Download and Categorize: Once connected, download your recent transactions and categorize them correctly.
Keep an Eye on Things: Monitor your bank feeds for a few days to ensure transactions are importing correctly.
29. I use third-party apps with QuickBooks Desktop. What do I do about those after migrating?
You’ll need to reconnect your third-party apps in QuickBooks Online:
Review Connected Apps: In QBO, go to the “Apps” tab and review your list of connected apps.
Reconfigure Integrations: Each app will have its integration settings. Ensure they are correctly configured for QBO and that you’ve selected the correct QBO company file.
Test, Test, Test:
Run test transactions to ensure data flows correctly between QBO and your third-party apps.
Verify that data is syncing as it should.
30. I've recreated my custom reports and templates in QBO. How can I be sure they are accurate?
Give yourself peace of mind with these checks:
Review: Carefully review every custom report and template you’ve recreated. Pay close attention to details like formulas, formatting, and data sources.
Test: The best way to be sure is to use your custom reports and templates. Test reports with sample data and create sample invoices or estimates to confirm everything looks and works as expected.
Migrating from QuickBooks Desktop to QuickBooks Online can seem like a big undertaking. Still, by understanding the process and following best practices, you can set yourself up for a smooth transition. Remember to back up your data, verify everything carefully, and don’t hesitate to seek support from QuickBooks or a qualified ProAdvisor if you need it.
Ready for a seamless migration experience? SaasAnt Transactions offers expert assistance to guide you through moving from QuickBooks Desktop to QuickBooks Online. Contact us today to learn how we can simplify your migration and help you unlock the full potential of cloud accounting!