If I Upload a New Quickbooks File to Quickbooks Online Will It Erase My Prior Work?

Congratulations for choosing to modernize and move your client to QuickBooks® Online Avant-garde. Conversion for some clients may be easier than others. This commodity is designed to diagnose a client's eligibility for conversion and then to walk you through the process, stride by pace, with easy-to-follow checklists.

My objective here is to concentrate on the basic parameters to consider when converting. Understanding the "why" things do or don't catechumen is fundamental to understanding what the possibilities and limitations are.

Assessing the client and files

There are several processes that should be considered before recommending and converting to QuickBooks Online Advanced, but let's begin with looking at yourconversion tool limitations. If you're new to converting files from QuickBooks Desktop to an online version of QuickBooks, at that place is a conversion tool located in QuickBooks Desktop that will transfer almost all of the desktop database to QuickBooks Online Advanced. Nonetheless, be aware that some of the data will non exist imported during the conversion. Some of these limitations include:

• Reconciliation history and reports.
• Recurring credit card charges.
• Memorized reports.
• Inspect trail.

Here is a link to a comprehensive outline of what to expect from the conversion tool.

As far as the conversion tool itself, about of the time the process goes pretty smoothly, just before doing this step, we need to practice our homework. You lot may accept heard a painting contractor say, "Near of the work is prep, not the pigment." Well, the aforementioned applies for us here. We must assess the client, know what will happen in the conversion procedure, so make clean the information if necessary, and motility forward.

You volition need to dig into your customer's desktop file and expect at the following areas.

Inventory

Inventory costing method: Yous should be aware that the default costing method for inventory in QuickBooks Desktop is average toll; QuickBooks Online's costing method is FIFO. Here'south why this should be considered before converting whatever clients currently tracking inventory in desktop:

• The conversion tool will capture the weighted boilerplate of existing inventory items in desktop at the moment of conversion.
• Once in QuickBooks Online, the average value will be divided by the quantity to decide the value of the beginning FIFO layer of that detail.

Y'all will demand to make up one's mind whether to use QuickBooks Online inventory; y'all'll exist presented with that inventory decision by the conversion tool.

• Some clients may need to continue the use of average costing.
• If so, you lot might consider NOT turning on Inventory in QuickBooks Online and use a 3rd-party app instead.

Database analysis

Older files with years of history demand some consideration, especially if the customer wants to convert ALL of the data. Information technology is our responsibility to not merely look at current balances, only likewise dig into the history of how QuickBooks Desktop was used. Cheque the post-obit:

Negative inventory balances: If an inventory value is negative, the FIFO costing method in QuickBooks Online has no footing. QuickBooks Online will automatically value unpurchased items that have been sold. On the Inventory/Cost of Goods Sold (COGS) transaction, QuickBooks Online volition presume that the average cost of the items Not on hand is either the aforementioned boilerplate toll as the items you had on manus OR the 'Particular Cost' from the Particular List.

Here, QuickBooks Online Advanced is making its own intelligent decision, but to avoid this, information technology is a best do to verify inventory balances and make certain that they are authentic. It is necessary to clean upwards and suit inventory before converting to QuickBooks Online.

Accounts receivable (AR) and accounts payable (AP): Brand certain the open up balances are authentic and all unapplied credits are applied before conversion. Exercise this by checking the aging reports for both AP and AR in the desktop file, and then applying any open debit or credit memos to their respective invoices or bills.

To detect the aging reports you will demand:

• Go to Reports > Customer & Receivables and pull; AR Aging Summary
• Go to Reports > Vendors & Payables and pull; AP Aging Summary

Unbilled costs: When converting a history of either unbilled expenses, unbilled time or unbilled items, QuickBooks Online volition block the ability to brand the connected COA account inactive.

If at that place is a history of unbilled costs, unchecking the "billable" box ane at a fourth dimension on each transaction can be fourth dimension consuming, but here's the expert news: There is a workaround in QuickBooks Desktop to clear unbilled costs in batches.

Run the "Unbilled Costs by Job" report under Reports > Customers & Receivables.

• Create an Invoice for each Client with unbilled costs.
• Click the Add Fourth dimension & Costs icon.
• Select each tab (Time, Expenses, Mileage & Items) and cheque "Hide" on all unbilled costs you need removed.
• Click OK.

That terminal step volition clear the billable costs for that Client. No need to relieve the invoice. Considering we can only practise this one Customer at a time, 1 invoice per Client, nosotros demand to use the create invoice screen for each Customer with billable costs and follow the aforementioned steps.

You should review the "Unbilled Costs by Chore" report in QuickBooks Desktop and address and unbilled expenses prior to conversion. At the fourth dimension of publication, there is no "Mileage" feature in QuickBooks Online.

PRO-TIP: If the client is already in QuickBooks Online, you can clear unbilled expenses in bulk. Open the client'due south QuickBooks Online, and in the URL remove anything after "qbo.intuit.com/app." Then, insert this at the finish of the url address: /managebillableexpense

The "Hide Unbilled Expenses" tool will load. Cull a date. The tool will clear any unbilled costs before that date in i easy step. At present, the associated business relationship in QBO can be made inactive.

Notation: This tool only works with Bills, Checks and Expenses with rows marked billable. Yous should clear unbilled Time & Items in QuickBooks Desktop using the workaround mentioned to a higher place, and do this before conversion.

Financial Reporting history: It is a skilful idea to run both profit & loss (P&L) and balance sheet reports with a previous year comparing for the history of the file. The reason checking reporting history is so of import is that some clients may have been using the chart of accounts in interesting means. For example, this may include inactive accounts or sub-accounts used in lieu of classes or vendor names as sub-accounts under Subcontractor Expense.

The listing of "interesting" anomalies could go on and on. Doing a little homework here will exist wise, but you should carefully consider if merging these accounts is an appropriate grade. It could affect prior year financial reports if you do.

To check the P&Fifty and Rest Sheet in QuickBooks Desktop, become to Reports > Company & Financial. Under this sub menu y'all will see:

• Balance Sail with Previous Year Comparison.
• Turn a profit & Loss with Previous Year Comparison.

Open both and and then alter the engagement range to "All" and the columns past "Year."

This will requite you lot a general feel of how the chart of accounts has been utilized over the years.

Class reporting history: If the client has a long history of course tracking, y'all volition want to look at the data to see if there are classes that may take been used differently or improperly in the past. You should verify how classes have been used over the history of the desktop file. Inactive classes do not convert.

If necessary, use the "Reclassify Transactions" tool in QuickBooks Desktop to batch reclassify transactions to the correct one.

To clean up classes:

• Outset check the Class list for inactive classes. Lists > Class List.
• Bank check the box at the bottom left to show any hidden classes that are no longer in use.
• Then run a study to bank check the history of use for each class. Reports > Visitor & Fiscal > P&L by Grade. Modify the appointment filter to "All" to view all entries posted to these accounts for the history of the file.

• Review the grade columns on the study. Run across if there are any redundant or unnecessary classes. Decide how each should exist addressed and use the following options to make clean upwards the classes.
  • Merge duplicates. Volition reduce the number of classes that convert.
  • Make unused classes inactive. Volition besides reduce the number of classes that convert.
  • Condense data. This is only an option if there are some classes that were misused historically AND you but want to convert from a sure date forward. The condense tool tin remove transactions and their associated "unused" form in one move.

PRO-TIP: Condensing data in QuickBooks Desktop may help. If the client does not need the entire history from a desktop edition, yous tin can condense the data prior to conversion. This volition remove transactions prior to a designated date and post an opening residue entry at that aforementioned date. When transactions are removed, the condense tool gives y'all the option to remove any unused list entries too. This graphic shows which unused listing entries you have the option to remove when condensing.

It is important that you review the procedures I've outlined above with your customer. Try to determine the reasons they need, or don't demand, historical lists. Explain the conversion process and the outcome on historical reporting, and then suggest your solutions, if any. In one case everyone decides to move forrard, make a backup to keep the original detailed data intact earlier you start cleaning or condensing the file.

Conversion process

Now that you accept cleaned upward the file and made the conclusion to convert, let's walk through the conversion process. The process more often than not falls into 3 phases, Pre Conversion, Conversion and Mail service Conversion.

Pre conversion

Outset by setting up a new QuickBooks Online Advanced subscription for the converted information to upload to. Y'all will be working from the QuickBooks Online Auditor dashboard.

Log into QuickBooks Online Accountant and look for the + symbol at the top right. This is the Quick Create menu. Brand certain you are not in whatsoever of your client'south files. You must be at the "Your Practice" screen or the workflows below volition not be in that location. Then, follow these steps.

• Create new QBO subscription.
  • QBOA > Quick Create > Client.
  • Follow prompts.
  • Choose subscription and who will pay the subscription fees.
• Sign out of QBOA

The new QuickBooks Online Advanced subscription should at present be listed on your client dashboard in QuickBooks Online Accountant. Click the QuickBooks logo next to your client's company proper noun to open up the file. There won't be whatever data in this new subscription, only it is prepare for our next steps. You will have 180 days to import desktop data to this new QuickBooks Online Advanced subscription before it locks.

First, make sure you lot are logged out of the QuickBooks Online Accountant file. This volition help when you are prompted to log into QuickBooks Online Accountant once more.

Next, verify if the client's desktop file is compatible with the conversion tool. In QuickBooks Desktop, open the company and follow the steps below. These steps volition verify the desktop database and prompt yous to take additional activeness, if necessary. It will also rebuild the data every bit a cleanup step. Practise not skip this process! You want to make sure well-structured data is moved over to QuickBooks Online Advanced.

Note: If the desktop software is more than than two years old, yous should download a gratis 30 mean solar day trial of the latest edition, install and open the company file in that latest desktop edition.

• Ostend QuickBooks Desktop file will convert:
  • Open up desktop file and run some utilities.
  • File > Utilities > Verify Data.
  • File > Utilities > Rebuild Data.
  • Tap [F2].
    • verify number of targets is below 350,000
    • verify lists totals are below usage limits
  • If necessary you tin can:
    • Merge or make inactive whatever unnecessary list items.
    • Condense data to remove targets and list items.
  • Create a backup for a pre-conversion archive.

Conversion

You should already be in QuickBooks Desktop and have verified that the file is cleaned upwardly and ready to move over to QuickBooks Online. QBO. Yous also have two complete backups filed away, one that y'all made before you started cleaning up the Desktop file and ane that you fabricated afterward the cleanup, merely before conversion.

The conversion tool is located in the Company Bill of fare in QuickBooks Pro and Premier.

If y'all are using QuickBooks Enterprise, the steps are a picayune different.

1. Open the QuickBooks Enterprise company file.
2. On your keyboard, press Ctrl+1 to open the "Production Information" window.
3. Printing Ctrl+B+Q.
4. Select OK to close the Product Information.
5. Follow the prompts to connect to QuickBooks Online.

Note: If the sign-in window doesn't appear after closing "Product Information", echo steps i-four.

If your customer is using Mac, click this link to review additional resources on converting from Mac.

• Open QuickBooks Desktop
• Company > Export Visitor File to QuickBooks Online
• Click Go along to start the interview
• Enter your QBOA login info and agree to the Terms of Service by clicking Sign In.
• Review your moving-day checklist and admission linked resources. Click Continue.
• Designate if yous desire the Inventory feature enabled in QuickBooks Online Avant-garde and desktop inventory converted to FIFO. Click Continue.
• Choose your customer's QuickBooks Online Advanced subscription from your house's client listing then Continue.
• Type AGREE to allow acknowledge this step volition be overwriting any data currently entered in that subscription. Click Replace.
• Intuit® will electronic mail you when conversion is finished.

The conversion is now complete. As y'all can now see, most of the harder piece of work was done prior to the conversion stage. Intuit has made the actual conversion role like shooting fish in a barrel. The key is to be certain yous exercise your homework before yous convert; this will make it all become smoother overall.

Postal service conversion

Yous will at present receive an e-mail from Intuit letting you know the data has been converted and you can admission an Import Summary report to get more insights on the conversion. Save information technology for your records.

Notation: If for whatsoever reason the file did not convert, Intuit will send you a notification. In my experience, they are really helpful at this stage and then don't worry. Merely contact QBOA support for next steps.

Now, log dorsum into QBOA and click the QuickBooks logo adjacent to your client's company proper name to open the QBO file that at present contains the imported desktop data. You lot will demand to have the QuickBooks desktop file open every bit well. Follow these steps beneath.

• Compare Reports: For each of the following, open in QuickBooks Online and QuickBooks Desktop and check for differences. NOTE: The beginning three reports in the list below will not match if yous are importing inventory – this is due to recalculations from average cost inventory to FIFO.
• Run Balance Canvass, all dates, accrual basis.
• Run Turn a profit & Loss, all dates, accrual ground.
• Inventory valuation summary, all dates (if applicable).
• Open up Invoices.
• Unpaid Bills.
• Undeposited Funds transaction detail study.
• Sales Revenue enhancement Liability.
• Payroll Tax Liability.
• Final Reconciliation study.
  • Open in QuickBooks Desktop
  • Use to create initial reconciliation in QBO
• Sales Taxation Payments
  • Taxes > Sales Revenue enhancement > Record Tax Payment.
  • Pre reconciliation, reissue and replace converted sales revenue enhancement payments.

• Payroll setup
  • Employees on left navigation bar.
  • Verify "Paid In." All employees paid in current year are marked YES.
  • Click Complete payroll setup.
  • Go along through prompts to consummate setup.

• Check inventory conversion (if applicable)
  • Converted to FIFO.
  • Conversion tool volition ship error notifications (if whatsoever). NOTE: Complete and file IRS 3115 if client's costing method will change (ie: average cost to FIFO)

• Prepare Users and permissions
  • Gear > Your Visitor > Manage Users.

• Company Information
  • Gear > Your Company > Account and Settings > Company.

• Reconcile accounts
  • Gear > Tools > Reconcile
  • Perform initial reconciliation in QuickBooks Online based on final reconciliation in QuickBooks Desktop

• Add together attachments
  • Customer listing.
  • Vendor list.
  • Individual transactions.
  • Attachment centre located in Gear > Lists > Zipper.

• Lists
  • Make unwanted list items Inactive.
  • Merge duplicate list items.

• Customize Sales Templates
  • Gear > Your Company > Account and Settings > Sales.

• Recreate Memorized Reports
  • Reports > My Custom Reports.

• Connect Apps
  • QBOA > Apps > Find Apps. Annotation: Check with programmer(south) to ensure new connection volition not indistinguishable activity.

• Connect QB Payments
  • Gear > Your Company > Business relationship and Settings > Payments.

• Connect Bank Feeds
  • Banking > Add Account. Note: To avert duplication, choose appropriate date range for initial download.

• Set Closing Engagement
  • Gear > Your Company > Account and Settings > Advanced.

Congratulations! You have successfully moved your client to QuickBooks Online Advanced. Y'all tin now interact and work with your client in real fourth dimension. No more than boxes of receipts, exchanging Auditor's Copies or needing pollex drives. In that location are then many benefits to transitioning your clients to the cloud. Enjoy the new freedom that cloud accounting gives you and your clients!

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Source: https://www.firmofthefuture.com/content/how-to-convert-quickbooks-desktop-to-quickbooks-online-advanced/

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