How to Upgrade Quicken to Quickbooks

Quicken is essentially an electronic check register. QuickBooks is better for business owners.

The Intuit company created a computerized check register to help individuals keep track of expenses. The result was Quicken accounting software. Quicken is primarily a personal finance tracker; QuickBooks came along later, geared specifically to the small business owner's needs. While Quicken is a single-entry system, QuickBooks is a double-entry accounting system. In other words, each transaction affects two accounts. When Intuit began creating specialized Quicken software for investors, landlords and business owners began to wonder if QuickBooks might be better for them.

Instructions

Prepare the Quicken Data for Conversion to QuickBooks

1. Create a backup copy of the Quicken data file you wish to convert to QuickBooks. Click on the "File" button in the menu bar and then on the "Make Backup" button. Rename this backup file to indicate that this is the most recent file and that this is the file you are converting. When prompted by Quicken for the location to which you would like to save this file, choose the Desktop. Do this by clicking in the "Location" box and highlighting the Desktop location, and then clicking "Ok".

2. Delete the Quicken accounts that won't transfer correctly to the QuickBooks software. Do this by opening the backup copy and deleting any personal savings, checking or investment accounts. The only accounts that should transfer to QuickBooks should be the business related accounts. If you are using the Quicken Investment account to keep track of your investments, remember that you will not be able to use QuickBooks to do this. If you choose to keep the investment account, it will be converted to QuickBooks as a current asset account. If your business is incorporated, delete it from the file before conversion.

3. Examine all memorized and scheduled transactions in Quicken. If any of the scheduled transactions are overdue, either pay them out of the Quicken file or delete them entirely. Print the checks or pay online before the conversion for these payments. Memorized invoices will not convert, so delete all of them in Quicken and recreate them when the conversion is complete.

4. Merge all duplicated customer names in Quicken. The conversion process will create a customer for each name in your accounts receivable register. If you have the same customer listed under different spellings, QuickBooks will create an individual customer for each spelling. In the backup file you are creating, make sure that each customer is only on the customer list once. Repeat the process for all duplicated vendors as well.

5. Save the backup copy again to the Desktop. Click on "File" and scroll down to the "Save" tab.

Conversion Process

1. Purchase a current copy of QuickBooks. QuickBooks cannot convert data from a version of Quicken that is newer than it is. Make sure that the QuickBooks is the most recent year version available or at least one year newer than the Quicken software.

2. Install the QuickBooks software onto the computer. The installation wizard will start automatically and guide you through the installation questions and answers. Do not create a new company or begin the "Easy Step Interview" when prompted.

3. Click on the "File" button in the top left corner of the menu bar. Scroll down to the "Utilities" button and click on it. When the side menu opens, scroll down to the "Convert" button. When that menu opens, scroll over to the "From Quicken" button.

4. Select the Quicken backup file you prepared to convert. The extension of this file will be .QDF. You will also have to convert the .QEL, .QPH, and the .IDX files. Select all these files for conversion and let the QuickBooks software guide you through the remainder of the process. You will be prompted to answer questions about the kind of additional services you will need from Intuit.

Tips & Warnings

• Backing up data first is important, since data lost in the upgrade would mean incomplete information has flowed into the QuickBooks file. Finding what is missing and getting it entered would be a pain-staking process.

References

• Intuit QuickBooks Support: Converting Data From Quicken to QuickBooks
• Intuit QuickBooks Support: Convert Quicken Data to QuickBooks