A Step-by-Step Guide

If your organization is considering the move from a QuickBooks Desktop version to QuickBooks Online – welcome to the crowd. The benefits of cloud-based accounting are numerous: remote access, real-time updates, app integrations, simplified collaboration  and many more.QBO 2025 Conversion

This guide will walk you through the process of converting to QuickBooks Online with helpful tips and expert insights.

Why Make the Switch to QuickBooks Online?

Looks like you’ve already decided to make the move, and here is a quick summary of why this makes sense:

  • Access Anytime, Anywhere: With cloud-based software, your data is no longer locked to one computer. Log in from the office, your home, or even your phone.
  • QBO is the Future – Intuit is gradually retiring it’s venerable line of Desktop (“QBD”) products and the big development efforts have been going into QBO for some time now. Employees will appreciate this move too since it’s nice to be a part of the future.
  • Real-Time Collaboration: Work simultaneously with your bookkeeper or accountant— you run reports why they make entries; no more emailing big QBB files back and forth and hoping that the latest one is in use.
  • Automatic Backups: QuickBooks Online backs up your data automatically, saving time and offering great peace of mind.
  • App Integrations: Connect to hundreds of third-party tools, from CRMs to payroll and inventory systems. Some apps are actually superior to the associated QBO feature. The list is growing continually.
  • Mobile App Features: Send invoices, capture receipts, run reports, and track mileage on the go.
  • Always the latest –  Every log-in to QBO uses the latest version; no more updating each QB workstation (and often the server) with the most recent version.
  • With these advantages, it’s easy to see why so many businesses are moving online.

Step-by-Step: How to Convert to QuickBooks Online

Step 1: Prepare Your File for Migration

Before jumping into the conversion process, begin with the following preparatory steps:

  1. Update QuickBooks Desktop: Open QuickBooks Desktop, go to Help > Update QuickBooks Desktop, and install any available updates.
  2. Review and Clean Up Your Data: Reconcile bank accounts, process any outstanding payroll, and verify inventory. QB-LA advisors can assist in performing a data health check to ensure everything is accurate before you migrate.
  3. Check File Size Limits: QuickBooks Online supports files with up to 750,000 targets. You can check this by pressing F2 in QuickBooks Desktop. If your file is too large, we can help condense it safely without losing critical data (it’s probably best not to do this yourself).
  4. Back Up Your Company File: Create a backup copy before starting the migration. Click:  File > Back Up Company > Create Local Backup to create your (hopefully) final “.QBB” file.  (This keystroke sequence may vary depending upon your QBD version).

Step 2: Start the Export Process

To begin the transfer:

  • First, subscribe to Quickbooks Online. There are generally 4 QBO options: Simple Start, Essentials, Plus and Advanced. Look at the features of each and choose the option with the needed features (often, this is often determined by the number of simultaneous logins / users)  If you select incorrectly, the plan can be easily upgraded or downgraded later.  Call us or another Intuit Proadvisor for assistance in this step; we can often offer better QBO pricing too.
  • Next, switch back to your desktop,  Then in QuickBooks Desktop, click on Company > Export Company File to QuickBooks Online. (You might not have this selection in older versions of QBD, which adds to the importance of getting this done soon! But the QBD-QBO migration can be done for sure.  In this case, contact us and we’ll tell you the options.
  • Select “Get Started” and sign in to your QuickBooks Online account when prompted. Click “CTRL  ALT  ?” [I.E., press Control key + Alt key + question mark key all at once to see your company ID (formatted as: nnnn-nnnn-nn). Write it down since you will need to re-enter this soon.

Step 3: Choose What to Transfer

At this stage, you’ll be prompted to decide what data to move:

  • Full Company Data: This includes customers, vendors, transactions, balances, and settings.
  • Lists and Balances Only: Ideal for companies starting fresh from a particular date.

Important Inventory Note: Inventory will switch to the FIFO (First-In, First-Out) method in QuickBooks Online. This may require filing IRS Form 3115 to reflect the change from the average cost method. Consult with the QB-LA or a tax advisor before migrating inventory numbers to avoid IRS discrepancies.

It would be great to say this is a fast, easy, seamless decision – but it’s not. This is where you might need expert help.

Step 4: Sign In to QuickBooks Online

Log in to your new QBO account and select the company file you want to import your data into. If you’re importing into an existing company file, be aware that it will overwrite the current data.  Think this out carefully since erronios imports cannot simply be deleted.

Step 5: Begin the Upload

Once everything is confirmed, click Upload and let the conversion process begin. Depending on the file size and internet speed, the transfer may take anywhere from a few minutes to several hours.

Step 6: Confirm the Migration

After the upload is complete, QuickBooks  Online will send an email notification. Log in to your QBO account again, compare reports (like Profit & Loss, Balance Sheet, accounts receivable and accounts payable over time), and verify that everything has transferred correctly.  In general, reports in your old QBD should have the same ending balances as the QBO beginning balances.

Need help reviewing your data? Yes, this may not be not easy. Check with us or a knowledgeable accountant with QB skills and use a post-migration checklist to ensure accuracy and functionality.

What Doesn’t Transfer to QuickBooks Online

While most data migrates cleanly, some items don’t transfer:

  • Bank Reconciliation Reports
  • Recurring Credit Card Charges
  • Custom Reports
  • Audit Trail (a new one starts in QBO)
  • Inventory from QuickBooks Mac Versions

Re-creating QBO customized reports and recurring transactions is a good training exercise, or we can help too.

When Should You Make the Switch?

Consider switching to QuickBooks Online if:

  • You or your team need remote access.
  • You want your team to feel good about using a modern accounting system.
  • You collaborate with a remote bookkeeper, accountant or manager.
  • You want to take advantage of automation and integrations.
  • Your business is growing, and scalable tools are needed.
  • You’re seeking a simpler way to manage accounting tasks on mobile devices.

For most businesses, the switch results in better efficiency, transparency, and decision-making power.

Final Thoughts

Converting from QuickBooks Desktop to Quickbooks Online is more than a technical process—it’s a strategic decision that can transform how your business operates. With proper planning, expert help, and step-by-step guidance, this important transition can be stress-free and result in superior decision making capabilities.

If your organization is ready to make the move or just have questions, reach out to us and we can help in all stages of this important move. Migrating to Quickbooks Online is not easy and can consume lots of time better spent elsewhere in your business, but it is truly a move into the future.

Need help with your QuickBooks conversion?

Contact Joe Kennedy’s team today to schedule a free consultation.

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