As a commercial real estate professional, you already know that accounting is critical. From managing individual rent payments and lease escalations to analyzing the performance of your portfolio as a whole, you depend on accurate numbers. Without full, updated visibility into each property and transaction, you can’t make informed decisions to help your business grow. For the best results, you want the most advanced accounting tools, and that means it may be time to switch from QuickBooks Desktop to Online.
In this article, we’ll take a look at the benefits of QuickBooks Online, including cloud access, automation, and a better setup for scalability to match your goals. Then, we’ll walk through the process of making the switch and troubleshoot common problems.
Why Should I Switch from QuickBooks Desktop to Online?
While you may be used to working in QuickBooks Desktop or worry that shifting to Online is an unnecessary hassle, it’s ultimately an investment in your business. QuickBooks Online is designed to be accessible and efficient, allowing you to streamline your workflows and make time to focus on growth.
Key Limitations of QuickBooks Desktop for CRE
The main limitations of QuickBooks Desktop for commercial real estate businesses are access and updates. The program can only be accessed from the device where it was originally installed, unless you have installed another host program. This means that in an emergency, it can be difficult to get into the program: for example, if you’re traveling and QuickBooks is loaded onto your office computer.
Additionally, QuickBooks Desktop requires manual updates to stay current. You lose valuable time ensuring that your data and program are accurate and functional.
Advantages of QuickBooks Online for CRE
QuickBooks Online is cloud-based and collaborative, meaning you and your whole team have access from anywhere without needing extra software. Take advantage of automatic updates, more integrations with CRE software, and improved reporting features for faster and better financial insights. With more visibility and control over your information, you’re more likely to catch issues early, avoiding costly mistakes and unpleasant audits.
Preparing for the Switch
Before you switch from QuickBooks Desktop to Online, follow these steps to help ensure the process goes smoothly:
- Evaluate your current QuickBooks Desktop setup. Now is the time to make sure that documents like leases and your chart of accounts are in order, as well as to decide if you need to migrate all of your data or want a fresher start.
- Back up your Desktop data.
- Review any add-ons or CRE-specific integrations that you plan to carry over.
- Choose the right QuickBooks Online plan for you. Make sure it suits your needs and that you can meet the system requirements.
Step-by-Step Guide: How to Migrate from QuickBooks Desktop to QuickBooks Online for CRE
Start here to switch from QuickBooks Desktop to Online while maintaining your data. Remember, if you have concerns, it’s always smart to ask accounting professionals and QuickBooks ProAdvisors for assistance.
- Verify company file size. This is especially important for commercial real estate firms with large portfolios.
- Update QuickBooks Desktop to the latest version.
- Create a backup copy of your Desktop data.
- Use the QuickBooks Migration Tool.
- Choose the data you want to transfer. Remember to include tenants, lease agreements, expenses, vendors, and other crucial information.
- Import and verify data in QuickBooks Online.
- Reconcile balances, reports, and accounts to ensure everything is in the right place.
Post-Migration Checklist
Ensure that your migration to QuickBooks Online was successful with these important checks:
- Confirm all tenant, lease, and financial data is accurate.
- Test reports: rent roll, property expenses, P&L by property.
- Reconnect banking and CRE software integrations like STRATAFOLIO
- Train your accounting team on QuickBooks Online features.
When to Seek Professional Help
Sometimes, your switch from QuickBooks Desktop to Online might require professional assistance to go smoothly. For example, large, complex CRE portfolios including multiple entities, extremely high-volume data migrations, or any business that requires custom investor reporting.
Additionally, you might run into common issues, including:
- File size limitations
- Missing or misaligned CRE-specific reports
- Differences in job costing, project tracking, and property management modules
In these cases, reach out to a QuickBooks ProAdvisor with experience in commercial real estate. This professional can help you navigate any complexities for a successful move.
Expert Tips to Maximize QuickBooks Online for CRE
Once you’ve settled into QuickBooks Online, it’s time to make sure that you’re getting the most out of the software. Here are a few tips for faster and easier processes in QuickBooks Online:
- Customize dashboards for property-level reporting, allowing you to dig deep on individual units.
- Automate recurring invoices for rent collection, reducing missed rent payments.
- Use class tracking and location tracking for properties.
- Set up automated bank feeds for faster reconciliations.
How Can STRATAFOLIO Help You in the Switch from QuickBooks Desktop to Online?
STRATAFOLIO is the best property management software that integrates with both QuickBooks Desktop and Online. If you’re considering taking advantage of QuickBooks Online’s more comprehensive resources, our QuickBooks ProAdvisors and accounting experts at STRATAFOLIO can help guide you through the process.
To learn more about STRATAFOLIO and switching from QuickBooks Desktop to Online, schedule a free demo now.
