Are you thinking about transitioning from QuickBooks Desktop to QuickBooks Online but don’t know where to begin? This comprehensive guide will walk you through the entire QuickBooks migration process—from preparation to post-migration tasks—ensuring a smooth and successful transition.
Should You Move to QuickBooks Online?
Evaluating Your Business Needs Before Migration
Both QuickBooks Desktop and QuickBooks Online are robust accounting platforms, but each serves different business scenarios. Deciding which version best supports your company starts with evaluating the complexity of your data.
Is Your Company File Too Complex?
Your QuickBooks company file contains vital business data—customers, suppliers, payroll, inventory, and transactions. Larger businesses typically have more complex company files with extensive histories and large file sizes. In such cases, migration may require extra preparation and potential customization post-migration.
If you’re using QuickBooks Desktop Pro, Premier, or Premier Accountant and operate a small to mid-sized business, you’re an ideal candidate for migration. However, QuickBooks Enterprise does not support migration in Canada currently.
What Converts and What Doesn’t?
Data That Transfers to QuickBooks Online
The following data usually transfers during the QuickBooks migration:
- Customer and vendor lists
- Chart of accounts
- Invoices and payments
- Bank transactions
- General ledger entries
However, formats may differ, requiring you to review and adjust post-migration.
Data That Doesn’t Convert Automatically
Some data—like custom templates, audit trails, payroll details, or certain reports—will need to be reconfigured or manually re-entered. For a full breakdown, refer to Intuit’s data conversion support articles.
How to Prepare for QuickBooks Migration?
To ensure a seamless transition, follow these key preparatory steps:
1. Backup Your Company File
Before initiating the transfer:
- Switch to single-user mode.
- Go to File > Create Backup and choose Local Backup.
- Run the backup and save it to a secure location.
2. Update QuickBooks Desktop
Always use the latest version before migrating:
- Switch to single-user mode.
- Navigate to Help > Update QuickBooks Desktop.
- Install updates and restart the software.
3. Review File Size (Total Targets)
Open the Product Information window by pressing Ctrl + 1. If Total Targets exceed:
- 1,200,000 in Canada
- 500,000 in the UK or South Africa
You may need a limited conversion (lists and balances only).
4. Disable Ministere du Revenu (Non-Quebec Only)
Mark this supplier as inactive to avoid issues.
5. Turn Off Payroll
Go to Edit > Preferences > Payroll & Employees, and choose No Payroll.
6. Save Sales Tax Liability Report
Export this report as a PDF and keep it for manual adjustments later.
7. Export Lists and Reports
(Optional) If you exceed Total Target limits, export:
- Chart of Accounts
- Products and Services
- Customers and Vendors
8. Create Your QuickBooks Online Account
Choose a plan aligned with your business needs. Important: Complete the migration within 60 days of signup.
Migrating Your Data from QuickBooks Desktop
QuickBooks Desktop Pro or Premier Users
- Log in as admin.
- Go to Company > Export Company File to QuickBooks Online.
- Sign in to QuickBooks Online and follow the prompts.
QuickBooks Enterprise Users
- Log in and press
F2for product info. - Then press
Ctrl + B + Qand click OK to begin the migration process.
Inventory Considerations
QuickBooks Online uses FIFO (First In, First Out) for inventory valuation. Set the inventory start date as the first day after your last tax filing period.
Post-Migration Checklist: What To Do Next
After migrating, complete these steps before using QuickBooks Online fully.
1. Verify Your Data
Compare these reports in both platforms:
- Balance Sheet
- Trial Balance
- Customer & Supplier Balances
- Sales Tax Summary
Run all reports using “All Dates” and the Accrual accounting method.
2. Confirm Company Settings
Update company name, address, email, and tax details by going to Settings > Account and Settings.
3. Configure Sales Tax
Go to Taxes > Sales Tax, choose your province or territory, and set up your tax profile.
4. Link Bank and Credit Card Accounts
Re-establish your connections via Bookkeeping > Transactions > Bank Transactions.
5. Reconcile Bank Transactions
Mark all transactions as reconciled up to the migration date under Settings > Reconcile.
6. Link Payments and Credits
Enable Automatically Apply Credits under Settings > Account and Settings > Advanced to fix aging report discrepancies.
7. Review Account Detail Types
Run the Account List Report, review detail types, and correct any that were assigned generically.
8. Complete Payroll Setup
Enter year-to-date payroll info manually under Payroll > Employees. Map Desktop pay types with QuickBooks Online equivalents.
9. Enable QuickBooks Payments
Set up a new Payments account under Settings > Payments to accept customer payments online.
10. Add Team Members
Invite users via Settings > Manage Users > Add User.
11. Invite Your Accountant
Go to Bookkeeping > My Accountant or Settings > Manage Users > Accounting Firms and send an invite.
Troubleshooting QuickBooks Migration Issues
Rebuild Your Company File If Needed
- Close all windows.
- Go to File > Utilities > Verify Data.
- If issues are found, go to Utilities > Rebuild Data.
- After completion, re-export the file.
Fix Conversion Errors
- If invoices convert as journal entries, verify sales tax setup.
- Turn on auto-apply credits to resolve broken journal entry links.
Final Thoughts: Start Using QuickBooks Online
With your data successfully migrated and configurations completed, it’s time to explore QuickBooks Online’s cloud-powered features—accessible anytime, anywhere. For additional support, review Intuit’s Getting Started with QuickBooks Online guide or consult a QuickBooks ProAdvisor.
Now you’re ready to take your accounting to the cloud!
Frequently Asked Questions
Yes, you can re-import your QuickBooks Desktop data into QuickBooks Online, but it requires resetting your Online company. This means you’ll need to delete your existing QuickBooks Online data and start fresh before re-importing.
The migration process typically takes 30 minutes to a few hours, depending on the size and complexity of your company file. Larger files or accounts with detailed histories may take longer.
After 60 days of creating a QuickBooks Online account, you can no longer use the built-in migration tool. In that case, you’ll need to either purge your QuickBooks Online company or start a new subscription and then transfer the data.
No, user roles and permissions do not carry over during the migration. You’ll need to re-invite users and assign roles manually in QuickBooks Online after the conversion is complete.
Once you’ve migrated to QuickBooks Online, the process cannot be undone automatically. You would need to stop using the Online version and return to your backed-up Desktop file manually if needed.
