Data Migration for Quickbooks Desktop to Online
Credit: Matthew P. Glick
Quickbooks Online is gaining popularity quickly due to the advantages of an online platform vs. a local desktop solution in ease of access and data security. If you are thinking of migrating to Quickbooks online from the Desktop version, here are a couple items that you will want to keep in mind.
- Ensure Quickbooks Online is able to serve your needs
While it may be understandable to assume that the desktop and online versions of Quickbooks are virtually the same, this is not quite the case. They are two completely separate products, albeit, developed by the same company, ensuring a certain level of similarity. They are certainly similar, but not so similar that they can be used interchangeably.
It is especially important to note that Intuit has yet to develop an online solution comparable to Quickbooks Desktop Enterprise. If you are a current Enterprise user, chances are that Quickbooks online would not be a wise decision. Quickbooks has some excellent help articles explaining in detail some specific things to be aware of when switching from the desktop version of Quickbooks, to the online version. One of the easiest differences to spot is in advanced inventory management, and advanced reporting. Some features simply do not exist in the online version, and others require a Pro subscription or higher. Be sure that none of the features that are missing in Quickbooks online are critical to your company before deciding to make the switch.
Another point to be aware of is the fact that there are some hard limits that may impact your ability to use the data migration tool provided by Intuit. The limit is set on the number of targets, or total line items for all transactions in your file. To find out how many targets your file contains, press the F2 key with your file open. Look for the line that says “Total Targets” and verify that this number is not over 350,000. If it is over that number, data migration will have to be a custom/manual process, and will require a reasonable time investment.
- Be aware of how the differences between the versions will affect the data transfer
Due to the differences in features and terminology from Quickbooks Desktop to Online, some data will be transferred in a way that will cause the financial statements to match, but may not necessarily transfer the way they were recorded. Custom fields especially will typically have to be added manually after the transfer is complete. Another example of data transferring in a way that may not be intended is transactions importing as journal entries, rather than checks if there was a complication in the import process. Intuit publishes an extensive list of items that may complicate a transfer, so be sure to review that to avoid any unwanted complications.
Keep in mind that this article applies only if you use the Quickbooks data migration tool. Another option is to hire a specialist to ensure all of the data is transferred error-free, and in an acceptable format. However, this will most likely be a much costlier and time-consuming process, if worry-free. Shopping for these services is beyond the scope of this article, however.
- Initiate the transfer
Intuit has a step-by-step guide published to walk you through the process of performing the data migration using their tool to complete the transfer. The amount of time it will take to complete the transfer will depend largely on the amount of data being transferred, and the amount of extra details that will need to be added manually afterward. It is best to block out your schedule for an entire day when starting a project like this to ensure minimal down-time and availability to address concerns as they arise. After the transfer is successful, you will want to pull reports and compare them with the numbers from the desktop file to ensure a successful transfer. It is important that you do this before you begin recording any activity in the new system. Ensure account balances from the balance sheet match, as well as Profit & Loss accounts for recent accounting periods.
Conclusion:
In conclusion, making the switch from Quickbooks Desktop to Quickbooks Online can be wise move if your company is new and/or has a fairly straightforward accounting approach. For companies bringing over a larger quantity of data, or ones that use custom fields, or other atypical or nonconventional approaches to their bookkeeping process may face some challenges in the data migration process, and are advised to consult with a QuickBooks professional before forging ahead.