QuickBooks is a popular accounting software solution for small and medium-sized businesses, offering both online and desktop versions. While QuickBooks Online (QBO) provides the flexibility of accessing your data from anywhere with an internet connection, QuickBooks Desktop (QBD) offers robust features and enhanced performance for those who prefer or require a desktop-based application. There are various reasons you might want to switch any software to QuickBooks from QuickBooks Online to QuickBooks Desktop, such as preferring the traditional interface, needing specific desktop features, or wanting to maintain a local backup of your financial data.
Converting QuickBooks Online to Desktop might seem daunting, but it can be done seamlessly by following a few straightforward steps. Here’s a comprehensive guide to help you through the conversion process:
Step 1: Prepare Your QuickBooks Online Data
Before you begin the conversion process, it’s essential to ensure your QuickBooks Online data is ready for export.
Backup Your Data
Although QuickBooks Online automatically backs up your data, it's a good practice to manually create a backup before making any significant changes. This ensures that you have a copy of your data in its current state.
Update Your Account
Make sure all your financial data in QuickBooks Online is up to date. Reconcile your accounts, review any pending transactions, and make sure your data is accurate. This step helps to ensure that the data you export is complete and correct.
Check for Compatibility
QuickBooks Desktop only accepts certain types of data exports. Ensure that your QuickBooks Online data is compatible with the Desktop version. This involves checking the version of QuickBooks Desktop you plan to use and ensuring it supports the features and data types you have in QuickBooks Online.
Step 2: Export Data from QuickBooks Online
Once your data is prepared, the next step is to export QuickBooks online to desktop .
Log in to QuickBooks Online
Sign in to your QuickBooks Online account using your administrator credentials. Only the admin can perform the data export.
Go to the Export Data Page
Navigate to the settings by clicking on the gear icon at the top right of the page. From the drop-down menu, select 'Export Data' under the 'Tools' section.
Choose the Data to Export
QuickBooks Online allows you to export various types of data, including reports, lists, and transactions. Select the data you want to export. For a complete conversion, you should export all available data types.
Start the Export Process
Click the 'Export to Excel' button. QuickBooks Online will begin generating your data in Excel format. This may take a few minutes, depending on the volume of data.
Download the Exported Data
Once the data export is complete, a download link will appear. Click on the link to download your data in a compressed ZIP file containing Excel files.
Step 3: Prepare QuickBooks Desktop for Import
With your data exported from QuickBooks Online, the next step is to prepare QuickBooks Desktop to receive this data.
Install QuickBooks Desktop
If you haven't already installed QuickBooks Desktop, do so now. Follow the installation instructions provided by Intuit. Make sure your QuickBooks Desktop software is up to date with the latest patches and updates.
Create a New Company File
Open QuickBooks Desktop and create a new company file. This file will serve as the destination for your imported data. Follow the on-screen prompts to set up the new company file with basic information.
Step 4: Import Data into QuickBooks Desktop
Now that your QuickBooks Desktop is ready, you can start importing the data you exported from QuickBooks Online.
Convert Excel Files to IIF Format
QuickBooks Desktop requires data to be in the Intuit Interchange Format (IIF). You can use third-party tools or Intuit's own tools to convert Excel files to IIF format. Ensure all your Excel files are converted correctly.
Import IIF Files into QuickBooks Desktop
Open QuickBooks Desktop, go to the 'File' menu, select 'Utilities', and then 'Import'. Choose 'IIF Files' from the list. Browse to the location of your converted IIF files and select them for import. QuickBooks Desktop will import the data and integrate it into the new company file.
Verify the Imported Data
Once the import process is complete, thoroughly check the data in QuickBooks Desktop to ensure it has been imported correctly. Compare the data with your original QuickBooks Online records to ensure accuracy. Pay special attention to account balances, transaction histories, and customer/vendor information.
Step 5: Final Adjustments and Setup
After importing the data, there are a few final steps to ensure everything is set up correctly in QuickBooks Desktop.
Customize Company Settings
Configure your company settings in QuickBooks Desktop to match your business needs. This includes setting up your fiscal year, tax preferences, and other company-specific settings.
Reconcile Accounts
Even though you reconciled your accounts before exporting data, it's a good practice to reconcile them again in QuickBooks Desktop. This ensures that all transactions are correctly accounted for and there are no discrepancies.
Set Up Users and Permissions
If you have multiple users, set up their accounts and permissions in QuickBooks Desktop. Ensure each user has the appropriate level of access based on their role in the company.
Backup Your Data
Create a backup of your new QuickBooks Desktop company file. This provides a restore point in case you encounter any issues later on.
Tips for a Smooth Conversion
· Consult with a Professional: If you're unsure about any step in the process, consider consulting with a QuickBooks ProAdvisor or accountant. They can provide guidance and ensure the conversion is done correctly.
· Test the New System: Before fully transitioning to QuickBooks Desktop, test the system with a few transactions to ensure everything works as expected.
· Keep Records: Maintain a record of your QuickBooks Online data and the steps you took during the conversion. This documentation can be helpful if you encounter issues or need to reference your old data.
Conclusion
Converting from QuickBooks Online to QuickBooks Desktop can be a straightforward process if you follow the steps outlined above. By preparing your data, exporting it properly, and carefully importing it into QuickBooks Desktop, you can ensure a smooth transition. Whether you prefer the robust features of the desktop version or need the security of local data storage, QuickBooks Desktop offers a powerful solution for managing your business finances. With careful planning and attention to detail, you can successfully convert your data and continue your accounting operations without interruption.
