Here we are discussing QuickBooks Data Migration, how to learn to migrate financial and accounting data from, or to QuickBooks. In simple words, Data migration is a method of transferring data between information storage systems, data formats, or computer systems. This article is to deliver you all the basics of data migration in different steps along with tips. Go through the complete article and learn it.
What is QuickBooks Data Migration?
QuickBooks Data Migration is an operation of moving your business’s financial information, such as customers, vendors, transactions, and accounts, from one QuickBooks version, like Desktop or accounting system, e.g., Xero, Sage, to another, typically to QuickBooks Online QBO, enabling a more modern, flexible, and cloud-based way to manage finances. It ensures your critical data remains intact and accurate during the transition, allowing you to continue operations seamlessly on a new platform.
These are a few steps, so let’s see:-
- Understand what data you’re migrating, wherever it lives, what type it’s in, and the type it will take at its new destination.
- Extract, transform, and reduplicate data before moving it.
- Implement data migration policies so knowledge is transferred in an orderly manner.
- Test and validate the migrated data to confirm it’s correct.
- Audit and document the whole data migration method.
Things to Do Before Migrating QB Data
Since the process of importing data is irreversible, you should create a backup of the QuickBooks company files. If you don’t have financial knowledge, then you should consider taking advice from an expert or an accountant before importing data. Focus on these steps that describe what to do before migrating QB data.
Prepare Your QuickBooks Desktop File
- Update QBD: Install the latest release of QuickBooks Desktop.
- Clean Data: Archive old customers, vendors, and unused Chart of Accounts items.
- Verify & Rebuild: Use the built-in utilities File, then Utilities, then Verify Data, then Rebuild Data, and after all of them, fix the errors.
- Reconcile: Reconcile all bank, credit card, and loan accounts up to the day before migration.
- Clear Pending Transactions: Enter or delete all outstanding transactions, bills, and invoices.
- Check Limits: Be aware of QBO’s data limits likes 350,000 targets, and condense if necessary.
- Payroll/Sales Tax: Run final payroll & tax payments in QBD, then wait a few days before migrating to set up QBO Payroll.
Set Up Your QuickBooks Online Account
- Choose a Plan: Select the QBO subscription that fits your business needs Simple Start, Essentials, Plus, or Advanced.
- Create Account: Set up your QBO account with the same region/country as your QBD file.
- Get Admin Access: Ensure you have admin login details for both QBD and QBO.
Before the Migration Process
- Backup Everything: Create a full backup of your QBD company file.
- Print Reports: Save or print key reports like Balance Sheet, P&L, and Sales Tax Summary.
- Deactivate Users: Log out all other users from QBD.
Migration & Post Migration
- Use the Tool: Use the built in QBD export tool Company and then Export Company File to QuickBooks Online.
- Verify in QBO: After migrating, run reports in QBO to confirm data accuracy.
- Set Up QBO Features: Configure new settings, users, and payroll in QBO
Information About QuickBooks Data Migration
QuickBooks data migration involves moving your financial info between different versions, Desktop to Online, Online to Desktop, or to other software like Business Central. The main types are Desktop to Online using the gear icon or export features, Online to Desktop using migration tools, or moving to third-party apps.
QuickBooks Desktop to QuickBooks Online
- Prepare: Update QBDT, reconcile accounts, categorize online banking, plan around payroll, check file size, and condense if huge.
- Initiate: In QBDT, go to Company, then Export Company File to QuickBooks Online.
- Sign in: Log in to your QBO account when prompted.
- Select Data: Choose to migrate all data or select specific lists some data, POs, and partially paid invoices may need manual entry.
- Upload: Follow prompts to upload it can take time.
- Review: Verify data, reconcile, and check settings in QBO.
QuickBooks Online to QuickBooks Desktop
- Download Tool: Get the migration tool from QBO.
- Export: Export your QBO data.
- Run Tool: Install and run the QBDT migration tool.
- Verify: Compare exported data with your QBDT file.
QuickBooks to Business Central or Other Apps
- Use specific extensions like the QB Data Migration Extension for BC.
- Requires setting up posting groups and assigning account numbers in the new system first.
After Migration
- Check Reports: Run a Profit & Loss and Balance Sheet in QBO and compare them side-by-side with your Desktop reports.
- Review Transactions: Unposted transactions will appear; review them on their respective pages, like Sales Invoices.
- Adjust & Post: Make any necessary manual adjustments, like for discounts or VAT, and post the transactions.
- Set Up Taxes: Configure your sales tax settings in QBO if needed.
Important thoughts
- Payroll: Pause payroll, wait 2-3 days after the last run, and set up QBO Payroll immediately after moving.
- Inventory: Desktop Average Cost differs from Online First in First out migrate at the fiscal year start if possible.
- Partial Payments: Migrate the full invoice amount; you’ll need to manually apply partial payments after migration.
- What Doesn’t Migrate: Purchase Orders, Sales Orders, and some complex items.
- Data Export/Import Manual: Use the Gear Icon, then Export Data to get CSVs for lists of Customers, Vendors, Chart of Accounts to import into QBO.
Conclusion
Hope this guide will meet your expectations, and help you know all the related things to do in migrating the QB data. If you want to know more about the QuickBooks Data Migration, then you have assistance from our team of Intuit certified QuickBooks ProAdvisors. They possess a lot of experience in the accounting and financial fields. Feel free to call us at our 24/7 toll-free customer support number quickbooks.