Switching from QuickBooks Desktop to Online

Since 2020 cloud accounting has surged in popularity as companies realized the need to have employees equipped to work remotely. The server-based accounting systems that once powered all companies via in-office desktop stations, have largely been migrated to cloud-based online versions with real-time data access from anywhere at any time. 

An open laptop with a financial report displayed.

And yet, there are still plenty of companies operating on legacy software that are just now beginning to evaluate whether moving to a cloud accounting platform may be the right option. 

If your company is exploring migrating to a cloud accounting platform, this is a great time to delve deeper into what kind of benefits cloud accounting can offer, what the differences are between QuickBooks Desktop (Desktop) and QuickBooks Online (Online), and what you will need to do beforehand to set yourself up for success after the migration.

Understanding Cloud Accounting Benefits
Cloud accounting platforms allow your financial data to be encrypted and stored remotely instead of kept on a server in-house. Cloud-based data can be accessed from anyone with access anywhere on demand. As a result, financial information, accounts, and reports can be updated and utilized from computers or mobile devices for more streamlined management. Cloud accounting has many benefits to offer, including:

• Higher user capacity
• Increased efficiency
• Greater collaboration
• Improved data accuracy
• Enhanced security
• Business continuity
• Expanded reporting capabilities
• Intuitive usability
• Scalability

If your team is feeling the limits of working on a legacy platform, now is the time to go digital with your accounting.

A Comparison: QuickBooks Desktop vs QuickBooks Online
The most obvious difference between QB Desktop and QB Online is that Desktop is installed on an individual computer for access by that user from there, while Online is cloud-based so it can be used by anyone with access from anywhere, better facilitating collaboration and remote work. However, there are other differences as well.

Desktop only allows for one user to be logged in at once (unless you pay for additional seat, which adds significant cost). Additionally, QuickBooks limits the number of computers that Desktop can be installed on regardless of how many people are using it. While some industries have traditionally clung to Desktop, over the last few years (namely construction, manufacturing, and wholesale) QuickBooks has definitely been prioritizing Online when it comes to rolling out new functionality and regular updates, making it an increasingly popular choice.  

Online allows multiple users to be logged in simultaneously from different locations (the number of users will be determined by plan level). Users do not need to be solely on desktop or laptop devices either, they can also be on mobile devices utilizing the QB Online mobile app, further enabling remote work.

Companies that outsource their accounting work to an accounting services provider will also see benefits in using Online because the process is far more streamlined than it would be on Desktop. With Online a consulting accountant or controller can get real-time access to the company’s financials and quickly make changes without needing to create a copy of the financials and reuploading them into the system like Desktop requires. But even companies that are managing their accounting functions internally will benefit from using Online because it includes frequent software updates to improve user experience and enhance features.

Companies that sell online will almost certainly want to use QuickBooks Online to get better integration with the other inventory, expense tracking, invoicing, and shipping/logistics apps and platforms that they rely on. In addition to these integrations, Online also offers functionality to implement automation around accounting workflows.  

For a more in depth look at the differences in ease of use and functionality, please visit our resource: What’s the Difference Between QuickBooks Desktop and QuickBooks Online?

What You Need to Know about Migrating to QuickBooks Online
Intuit has a great internal help resource with instructions on how to move over to QuickBooks Online from QuickBooks Desktop that will guide you through the process. But before you begin the migration process, take these steps to ensure the process will run smoothly:

1. Back everything up.
2. Export your reports and lists.
3. Update your software to ensure you are using the latest version.
4. Determine what you want/need to take with you.
5. Understand what will not migrate over in the switch.
6. Ask for help, where needed.

Go slow and do the requisite planning to ensure your migration will be successful. And, if you find the migration process overwhelming or run into issues when trying to make the switch, do not be afraid to ask for help in the QuickBooks online forum or from an experienced accountant. An outsourced accounting company can give you advice, help troubleshoot issues, or even manage the migration for you entirely.

If you need help migrating to a new platform, upgrading your accounting system, or analyzing your accounting software options, please contact us! Our consulting accountants have experience with a wide range of accounting software to help you determine what will be best for your company.