Resolving Problems Converting QuickBooks Desktop to Online

4 min readJul 2, 2024

Migrate QuickBooks Desktop to QuickBooks Online

Migrating from QuickBooks Desktop to QuickBooks Online can streamline your accounting processes and offer greater flexibility, but it’s not without its challenges. Users often encounter problems during the conversion process that can disrupt business operations. This guide provides solutions to common issues faced when converting QuickBooks Desktop to QuickBooks Online, helping ensure a smooth transition.

Common Issues and Their Solutions

1. Incomplete Data Transfer

Problem: Not all data transfers correctly, leading to missing transactions, customer information, or vendor details.

Solution:

Update Software: Ensure both QuickBooks Desktop and QuickBooks Online are updated to their latest versions.
Data Cleanup: Before conversion, clean up your data. Reconcile accounts, delete unnecessary data, and resolve outstanding issues.
Export and Re-import: If data is missing, try exporting specific lists (like customers, vendors, or products) from QuickBooks Desktop and importing them into QuickBooks Online.

2. File Size Limitations

Problem: QuickBooks Online has a file size limit for imports, and large company files from QuickBooks Desktop may exceed this limit.

Solution:

Condense Data: Use the Condense Data utility in QuickBooks Desktop to reduce the file size. This utility archives older transactions and reduces the overall size of your company file.
Segment Data: Consider segmenting your data by exporting and importing it in chunks. For example, import a few years’ worth of data at a time.

3. Compatibility Issues

Problem: Certain features and data types in QuickBooks Desktop do not have direct counterparts in QuickBooks Online, leading to compatibility issues.

Solution:

Feature Mapping: Identify the features in QuickBooks Desktop that don’t directly convert to QuickBooks Online. For example, certain types of custom fields or job costing features might need to be manually adjusted or recreated.
Third-Party Apps: Use third-party applications that integrate with QuickBooks Online to replicate functionalities that are missing or different.

4. Interrupted Conversion Process

Problem: The conversion process is interrupted, leading to incomplete or corrupted data migration.

Solution:

Stable Internet Connection: Ensure a stable and reliable internet connection throughout the conversion process.
Avoid Multitasking: During the conversion, avoid running other heavy applications on your computer that might interfere with the process.
Restart Conversion: If the conversion fails, restart the process. Ensure all steps are followed correctly, and try converting outside of peak internet usage times to minimize disruptions.

5. Reconciliation Discrepancies

Problem: Post-migration, your accounts may show discrepancies, making it difficult to reconcile your books.

Solution:

Reconcile Before Conversion: Reconcile all accounts in QuickBooks Desktop before starting the conversion process.
Post-Conversion Reconciliation: After conversion, immediately reconcile your accounts in QuickBooks Online to identify and correct discrepancies early.
Compare Reports: Run comparative reports in both QuickBooks Desktop and Online to identify any differences and make necessary adjustments.

Step-by-Step Conversion Process

Step 1: Prepare QuickBooks Desktop for Export

Update QuickBooks Desktop: Ensure you have the latest version.
Backup Data: Create a backup of your QuickBooks Desktop data.
Clean Data: Reconcile accounts, resolve outstanding issues, and condense data if necessary.

Step 2: Set Up QuickBooks Online

Create Account: Sign up for a QuickBooks Online account and select the appropriate plan.
Prepare Account: Configure basic settings and user permissions in QuickBooks Online.

Step 3: Convert Data

Export Data: In QuickBooks Desktop, go to Company > Export Company File to QuickBooks Online.
Sign In: Log in to your QuickBooks Online account when prompted.
Select Destination: Choose the QuickBooks Online company to import the data.
Verify Export: Follow on-screen prompts to complete the export process.

Step 4: Verify Data in QuickBooks Online

Check Accounts: Ensure all accounts are present and correctly categorized.
Review Transactions: Verify that transactions are complete and accurate.
Check Lists: Ensure that all customers, vendors, and other lists have been imported correctly.

Step 5: Post-Conversion Tasks

Reconnect Bank Feeds: Reconnect any bank feeds you were using in QuickBooks Desktop.
Integrate Third-Party Apps: Reintegrate any third-party applications you were using.
Customize Settings: Adjust settings and preferences to match your business needs.
Training: Train your team on using QuickBooks Online.

Conclusion

Converting from QuickBooks Desktop to QuickBooks Online can bring many benefits to your business, but it requires careful planning and execution. By preparing adequately, addressing common issues, and following a structured process, you can ensure a successful migration. Embrace the new features and flexibility of QuickBooks Online to enhance your accounting and business management practices.