Are you thinking about switching to QuickBooks Online from QuickBooks Desktop but aren’t sure where to begin? So let’s go through this and know about it. You can use our internal tool to review the following two sections to help in your choice to switch from QuickBooks Desktop to QuickBooks Online.
Because your company file’s complexity will be relatively low, if you run a small or medium-sized business and use QuickBooks Desktop Pro, Premier, or Premier Accountant, you are a suitable candidate for migration to QuickBooks Online. Take into account the features your company requires to run before you begin the conversion process. The section below goes into further detail on a few of these variations.
Pre-Migration Strategies for Switch from QuickBooks Desktop to QuickBooks Online
To make sure your information migrates correctly, there are a few things to do before you begin the conversion process. To make sure everything is prepared to migrate, you have to follow the steps that are mentioned below.
Before migrating, you have to back up your data using the following steps
It’s a good idea to regularly back up data in QuickBooks Desktop. You don’t need to manually back up your data because it is safely stored in the cloud with QuickBooks Online.
- If you are currently using multiple users, then you have to go to the File menu, and then you have to select Switch to Single-user Mode.
- Select Create Backup from the File menu.
- Next, choose Local backup.
- Select Local Backup and click Next in the window.
- Choose Browse and then the location where you want to save your backup company file in the Local Backup Only section.
- Then you have to set the number of backups that you want to keep and this is optional.
- Before you save, a test is done to ensure your backup file is accurate.
- When you are ready to move forward, you have to click OK.
- Pick Save it Now and then go on. When the backup is finished, a confirmation message will appear on the screen.
Clean up bank reconciliations
It assumes that no bank transactions have been reconciled because you haven’t done one yet in QuickBooks Online. For QuickBooks to only take future transactions into account for reconciliation, you must instruct it to mark all transactions up to the conversion date as reconciled.
- Choose Reconcile from the Settings (QuickBooks Desktop gear icon) menu.
- Select Reconcile Now after selecting the appropriate bank account from the drop-down box, entering the Ending balance, and selecting the Ending date.
- The transactions are shown in a list.
- To choose every transaction in the list, check the boxes at the top.
- Make sure you have selected every transaction in both columns if the data is in two columns.
- You have to find transactions that haven’t been cleared yet and uncheck them.
- You have completed the reconciliation when the Difference is zero.
- Then you have to select Finish Now.
- For every account you have connected to QuickBooks Online, you have to repeat these steps.
Link payments and credits to open invoices
You might see names with zero balances in your A/R and A/P aging reports because the transactions transferred into QuickBooks Online did not link invoices with their corresponding payments. By activating the Automatically Apply Credits feature, you may quickly link credits and payments to your open invoices.
- Account and settings can be found in the Settings (gear icon) menu, which is located near the top right of the screen.
- Select Automatically Apply credits on the Advanced tab, then you have to click Save.
Review accounts’ detail types
Your sub-account structure is maintained by QuickBooks Online after conversion. However, it also makes use of a Detail type, which is an additional level of account types. You can be more specific with your account organization using detail kinds.
When converting accounts, detail types are assigned to accounts where the detail is obvious. The conversion process assigns a generic detail type, such as Other Miscellaneous Income, to accounts where it is unclear what the appropriate detail type should be. You can change this right now.
To review and modify the detail types for your accounts, run the Account Listing Report:
- Begin by going to Business Overview and then you have to select Reports.
- Open the Account List report by searching for it.
- Then you have to review your accounts.
- To change an account’s detail type, choose the account name.
- After that, from the Detail Type dropdown menu, you have to select the correct detail.
- Then you have to click on Save and then Close.
Complete payroll setup
To balance your books, transactions and payroll accounts are converted, but the information behind the transactions—such as payroll item breakdowns and employee year-to-date figures—is not changed. Journal entries are created for liability refunds, adjustment transactions, and opening balance transactions that affect accounts. To finish setting up your payroll in QBO:
- You have to go to Payroll and then you have to select Employees.
- Make sure that every employee who received a paycheck this year has their status set to Yes in the Paid in [Year] column.
- Anyone who hasn’t received pay this year is automatically listed as No.
- To enter or confirm your year-to-date paycheck totals and employee information, choose Complete payroll setup.
- To finish the setup, you have to follow the instructions that are displayed on the screen.
- When you are prepared to pay your employees, you have to use Run Payroll.
If your QuickBooks Desktop pay types were not mapped to a typical QuickBooks Online pay type, you might be prompted to match your payroll items. To align your QuickBooks Desktop pay types with those of QuickBooks Online, follow these steps.
- In the QuickBooks Online column, you have to choose the (choose one) dropdown.
- Choose the pay type that most nearly matches the item’s configuration in your Desktop file.
- It’s best practice to review your QuickBooks Desktop file and verify how your items are set up to ensure that the pay types match.
- After the mapping is complete, you have to choose Save and Close.
- The same process must be followed for each item that needs to be mapped before choosing Continue.
Link Payments account
While your current Payments account cannot be transferred to QuickBooks Online, a new one can be made. To enable payments in QuickBooks Online, you have to follow these steps.
- Select Account and Settings from the Settings (QBO gear icon) menu.
- Then you have to choose Payments. Choose Learn more from the QuickBooks Payments option.
- Then you have to select Set up Payments. Three sections of a signup window appear.
- Select Start in the Business section. After completing the form, you have to click Next.
- Select Start in the Owner/Proprietor section.
- After completing the form, you have to click Next.
- Go to the Bank section and choose Start. Search for your bank after selecting Add a new bank connection.
- Choose the account that should receive payments from customers.
- Select Connect after entering your bank’s login credentials.
- Select Activate Payments when you are finished with all of the sections.
Add users
Check to see that the access is appropriate for any users you want to add to QuickBooks Online. By choosing the Settings (gear icon) menu, then Manage users, you can see your current users.
If you want to add extra users then you have to:
- Firstly, you have to select Settings, then you have to select Manage Users.
- Then you have to select Add user.
- Now you have to select the user that you want to create. Based on the user type you choose, more options appear on the screen.
- After that, you have to enter your new user’s name and email address and then you have to select Save.
After you finish these processes, QuickBooks sends an email to your new user. You can ask them to click the email’s link to access a sign-in or account creation page.
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