How to Convert QuickBooks Online to Desktop

QuickBooks Online (QBO) and QuickBooks Desktop (QBD) are distinct Intuit accounting software solutions. QBO is a cloud-based subscription service, accessible anywhere with internet. QBD is a software program installed directly on a computer, providing a locally stored solution. Businesses migrate from QBO to QBD for offline access, advanced reporting, or more robust industry features. Conversion transfers core financial data, enabling accounting continuity on a different platform.

Preparing for Conversion

Before transferring data from QuickBooks Online to QuickBooks Desktop, prepare for a smooth process. A compatible QuickBooks Desktop version is required; use one from the same year as your QuickBooks Online data or newer for optimal compatibility. Administrative access is needed for both QuickBooks Online and Desktop installations to export and import.

Ensure strong internet connectivity and that your computer meets QuickBooks Desktop system requirements, including Internet Explorer 10 or higher, as ActiveX controls may be required. Before data migration, create a comprehensive backup of your QuickBooks Online company file. This backup allows data restoration if issues arise. Confirm your QuickBooks Desktop software is fully updated to its latest release to avoid compatibility problems. Before export, ensure all pending QuickBooks Online transactions are recorded and reconciled to guarantee data integrity.

Executing the Conversion

Conversion involves exporting data from QuickBooks Online and importing it into QuickBooks Desktop. Log into QuickBooks Online with administrator credentials. Navigate to the “Export Data” or “Export Overview” page from settings. You may be prompted for an export reason.

QuickBooks provides a migration tool; download and install it. Keep the QuickBooks Online page open during installation. Once ready, select the financial data to export (e.g., all financial data or without transactions). Follow on-screen instructions to complete the export, resulting in a QBXML file.

After export, open QuickBooks Desktop. Use the import wizard (File > Utilities > Import), selecting to import from QuickBooks Online or a QBXML file. Browse for the exported data file and proceed. If prompted for permissions during import, allow access for the migration tool.

Verifying Converted Data

After conversion, verify the accuracy and completeness of your financial data in QuickBooks Desktop. Compare key financial reports between the original QuickBooks Online file and the converted QuickBooks Desktop file. Run a Balance Sheet and Profit & Loss (Income Statement) report for the same period in both versions to check for discrepancies.

Review customer, vendor, and employee lists in QuickBooks Desktop to ensure correct transfer of entries, contact information, and addresses. Examine transaction history for a sample period (e.g., last few months) to confirm proper import of invoices, payments, and bills. If tracking inventory, verify product and service items and quantities transferred accurately.

Reconcile bank accounts for the most recent completed period in QuickBooks Desktop to ensure all banking transactions are present and reconciled. If discrepancies are found, the Audit Trail report in QuickBooks Desktop helps investigate what was imported, though it may not differentiate between manually entered and imported transactions.

Understanding Data Transfer Limitations

Not all data or features transfer seamlessly when converting from QuickBooks Online to QuickBooks Desktop. Some data elements do not migrate automatically, requiring manual re-entry or reconfiguration.

Payroll data, including detailed payroll item breakdowns and employee year-to-date numbers, generally does not transfer. Transactions affecting payroll accounts may convert to journal entries.
Bank feeds and their associated rules are not directly transferable; you will need to re-establish bank connections and recreate automated rules.
Specific app integrations from QuickBooks Online will not carry over, requiring re-integration or replacement with desktop-compatible solutions.
Memorized transactions and recurring transaction templates do not transfer during the standard conversion process.
Budget data may not transfer, particularly if it involves class budgets.
Custom reports created in QuickBooks Online will not be available in QuickBooks Desktop.
Historical audit trails might not fully transfer or may appear differently.
Features like sales reps, vendor types, and job types from QuickBooks Online may not transfer. Custom fields on lists are not supported in QBD in the same way.
Certain settings and preferences, such as sales tax codes or specific invoice customization, may also need manual reconfiguration.