How to Convert QuickBooks Self-Employed to QuickBooks Online

QuickBooks Self-Employed works well for tracking income, expenses, mileage, and tax-related information. As bookkeeping needs grow, QuickBooks Online provides a broader set of accounting features for managing business finances. QuickBooks provides a direct way to move eligible QuickBooks Self-Employed data to QuickBooks Online. However, moving to a new QuickBooks product requires proper planning to keep your financial information organized and avoid issues during the transition. This guide explains the key things to consider before the conversion and the steps to convert QuickBooks Self-Employed to QuickBooks Online.

Why Do You Need to Convert QuickBooks Self-Employed to QuickBooks Online?

QuickBooks Self-Employed handles basic bookkeeping, but growing businesses often need more accounting features and flexibility. QuickBooks Online offers more tools to manage financial records and meet changing business needs. You might need to move QuickBooks Self-Employed to QuickBooks Online for the following reasons:

• QuickBooks Online provides advanced bookkeeping and accounting tools.
• Its broader feature set helps businesses handle increasing accounting requirements.
• QuickBooks Online offers more options to organize and manage financial information.
• Users who need more than basic income and expense tracking get access to a more comprehensive accounting platform.
• The conversion process lets eligible users transfer their QuickBooks Self-Employed data to QuickBooks Online.
• QuickBooks Online offers multiple plans to meet different business requirements.

QuickBooks Self-Employed vs. QuickBooks Online

QuickBooks Self-Employed and QuickBooks Online meet different bookkeeping needs. QuickBooks Self-Employed provides essential tools for self-employed individuals. On the other hand, QuickBooks Online provides a wide range of accounting features for businesses. The following comparison shows the key differences between the two platforms.

Feature	QuickBooks Self-Employed	QuickBooks Online
Primary use	Designed for self-employed individuals and freelancers	Designed for small businesses and growing businesses
Income and expense tracking	Yes	Yes
Mileage tracking	Yes	Available with supported features/plans
Profit and Loss reports	Yes	Yes
Tax-related reports	Yes	Yes
Accounting features	Basic bookkeeping features	More comprehensive accounting features
Business management	Suited to individual business owners	Better suited to businesses with broader accounting needs
Plan options	Focused on self-employed users	Multiple plans for different business requirements

QuickBooks Self-Employed suits users who need basic income, expense, mileage, and tax tracking. QuickBooks Online provides a broader accounting environment for users who need more advanced bookkeeping and business management features.

Pre-Conversion Checklist for QuickBooks Self-Employed to QuickBooks Online

Keep these pointers in mind before you transfer QuickBooks Self-Employed data to QuickBooks Online: 

• Save financial reports- Download Tax Details, Profit and Loss, Mileage Log, and Receipts reports.
• Save transactions- Download your transactions for a manual switch.
• Review open transactions- Categorize open transactions before transferring your data.
• Check unpaid invoices- Mark invoices as paid before the transfer.
• Choose a method- Use the direct switch or manual method based on your subscription.
• Select a plan- Choose a QuickBooks Online plan that suits your business.
• Review payment details- Keep your payment information ready.
• Know the limitation- Direct conversion does not allow you to switch back to QuickBooks Self-Employed.

What are the Steps to Convert QuickBooks Self-Employed to QuickBooks Online

QuickBooks Self-Employed users who need advanced bookkeeping features can move their data to QuickBooks Online. First, save your financial reports, then transfer your data to the new QuickBooks Online account.

Method 1- Switch from QuickBooks Self-Employed to QuickBooks Online

QuickBooks provides a direct way to switch to QuickBooks Online and move your existing data. Follow these steps to save your financial records and complete the switch.

Step 1- Save Your Financial Reports

Before switching, download your financial reports from QuickBooks Self-Employed and keep copies for your records.

• Open Reports and choose Standard reports.
• Under Tax details, choose the required tax year.
• Click Download to save the report.
• Download the report for every available tax year in your QuickBooks Self-Employed account.
• Follow the same process for the Profit and Loss, Mileage Log, and Receipts reports.

Step 2- Copy Your Data to QuickBooks Online

After you move your data to QuickBooks Online, you cannot return to QuickBooks Self-Employed. Complete the following steps on a computer:

• Select Settings, then select Upgrade from the Profile section.
• Then, select Choose plan for your preferred plan.
• Next, review the feature changes and select Sounds good.
• Select Bring my data to move your existing data. Select Start Fresh to begin without transferring your data.
• When you choose Bring my data, categorize open transactions and mark invoices as paid before moving them. QuickBooks does not let you mark unpaid invoices as paid after the transfer. You must delete and recreate those invoices instead.
• Review the summary of the data you want to move.
• Now, choose Continue, then select To QuickBooks Online!
• Review your payment method and select Change plan. Select Edit to update your payment method.
• Confirm the required business details to start using QuickBooks Online.

Method 2- Manually Switch from QuickBooks Self-Employed to QuickBooks Online

QuickBooks requires a manual switch when you purchased your QuickBooks Self-Employed subscription through Google Play or the App Store to convert QuickBooks Self-Employed to QBO: 

Step 1- Download and Save Your Data

• Download your QuickBooks Self-Employed transactions before moving them to QuickBooks Online. Keeping a copy of your transaction data provides an additional backup for your records.

Step 2- Subscribe to QuickBooks Online

• Visit the QuickBooks Plans & Pricing page and select the QuickBooks Online plan that fits your business needs.

Step 3- Copy Your Data to QuickBooks Online

• Now, decide how you want to move your transaction data before starting the process.
• QuickBooks Online banking helps you avoid duplicate transactions by connecting your bank and credit card accounts and downloading transactions directly into QuickBooks Online. You can manually upload your transactions instead if you do not want to use Online Banking.

Step 4- Cancel Your QuickBooks Self-Employed Subscription

• After you finish importing your data into QuickBooks Online, cancel your QuickBooks Self-Employed subscription. This helps prevent charges for both subscriptions.

Method 3: Use a Third-Party Migration Tool

A third-party migration tool can help transfer QuickBooks Self-Employed data to QuickBooks Online. This option can simplify the migration when direct or manual methods do not meet your needs.

Step 1-  Choose a migration tool

• Select a tool that supports QuickBooks Self-Employed and QuickBooks Online.

Step 2- Review your data

•  Save important reports and transaction records before migration.

Step 3- Connect your accounts

• Follow the tool’s instructions to connect your QuickBooks accounts.

Step 4- Select data

• Choose the data you want to transfer and review the available options.

Step 5- Start the migration

• Follow the tool’s instructions to complete the transfer.

Step 6- Verify your data

• Check the transferred transactions, balances, invoices, and other records in QuickBooks Online.

Step 7- Cancel your subscription

• Cancel QuickBooks Self-Employed after confirming that your data transferred correctly.

Note: Third-party tools may support different data types and features. Check the provider’s compatibility, pricing, security, and data-transfer options before using the service.

Conclusion 

Converting from QuickBooks Self-Employed to QuickBooks Online helps you manage your bookkeeping with a broader set of accounting features. Before you start the conversion, save your financial reports and transaction data. Use the direct switch option when available, or manually convert QuickBooks Self-Employed to QuickBooks Online when required. After the move, review your data to ensure your records are ready for continued bookkeeping in QuickBooks Online.

Frequently Asked Questions