QuickBooks Desktop Slated to Sunset as Intuit Shifts to the Cloud

Like many vendors across the software industry, including Microsoft and Adobe, Intuit is sunsetting its long-running desktop product line in favor of its cloud-based model. QuickBooks Desktop (QBDT), used by small businesses for decades, is being phased out as the company directs customers to QuickBooks Online (QBO).

As of September 2024, Intuit stopped selling new subscriptions to its desktop versions (with the exception of Enterprise) and will start to phase out support for existing subscribers as each edition reaches the end of its lifecycle.  

According to Intuit’s FY2024 report, QBO generated $3.4 billion in revenue compared to $1.4 billion from QBDT. This revenue mix shows a clear shift toward a cloud user base but at a pace leaving nearly a third of desktop users still to transition from the legacy platform in the next two years.

Intuit will continue to support renewals for active QBDT Plus users on Pro-Plus, Premier-Plus, Mac-Plus, and Enhanced Payroll, but once a version reaches the end of its three-year support window, access to online banking, payment and payroll functions, and important security patches will no longer be available. While it’s possible to continue running on a skeletal QBDT version beyond those dates, there’s an increased risk of system failures that could result in permanent data loss, compliance gaps, and inaccurate reporting.

Support is slated to officially end for QBDT 2023 in May 2026, followed by the final 2024 edition on September 30, 2027.

What are the Benefits of Moving to QuickBooks Online?

For most small businesses, migrating from QBDT to QBO is a natural next step. There are a number of accounting software options available, but QBO has the largest market share and offers the most comprehensive features for businesses with standard accounting needs. (For growing businesses, however, this could be a good time to look into more robust systems if needs have become more complex.)

Based on a 2023 survey of existing QBO small business users, 87 percent of respondents said that it’s easier to run their business with QBO. Below are some of the reasons why:

• Real-time access from any device: Moving to a cloud solution removes the barriers of having to be tied to a desk or a local server and allows businesses to access files, process payroll, update financials from anywhere.
• Automatic updates: Rather than manually downloading or installing updates, QBO provides new features, security patches, and compliance updates automatically.
• Built-in backup and secure storage: QBO backs up data every night and stores encrypted files in the cloud that can be restored to prior versions if needed.
• Improved integration with third-party apps: QBO integrates with over 700 third-party apps like Gusto, TSheets, and Shopify to connect payroll, scheduling, and e-commerce to create a more connected financial ecosystem.
• Live collaboration: Business owners and accountants can access a live set of books at the same time, which makes it easier to review financials without exchanging files. 

What Should Businesses Know About the Transition?

While most businesses see the value in migrating to QBO, the sheer logistics of transferring years of financial data to a new platform can feel overwhelming and cause businesses to delay the process, but with QBDT sunsetting, it’s important to be proactive.

Fortunately, Intuit has made the migration process relatively simple. They provide step-by-step instructions and a migration tool to help move data over with minimal disruption.

Before starting the migration, however, it’s helpful to map out a plan and outline key action steps needed to prepare data for the new system. For example, reconcile accounts, close out old periods, and decide what data to bring over, such as whether to transfer all historical transactions or only opening balances and lists of customers and vendors. Also, identify any compatibility gaps in advance, as certain features in QBDT might not have the exact equivalents in QBO, like industry reports or inventory management.

Once the planning phase is complete, the actual migration can be fairly quick. Intuit’s tool can move most files in under a few hours, but companies should allocate enough time to double-check reports in QBO against their QBDT versions. For instance, comparing balance sheets or open invoices could be one way to verify if the data came across accurately. From there, train staff on new workflows and integrations so they can maximize QBO’s potential.

Consider the following best practices as you plan out the migration:

• File size: Very large files may not migrate cleanly in one attempt, so you may consider condensing or archiving older transactions and migrate at a period-end to simplify reconciliation.
• Payroll: If you use QBDT Payroll, run all outstanding payroll and tax forms before migration to start fresh in QBO with the next pay cycle to avoid gaps or duplication.
• Third-party integrations: Some add-ons may not be parallel across both systems, which could affect workflows, so be sure to identify alternatives or native QBO apps to fill those roles.

 

How Can R&A Help Make the Transition Easier?

Amid day-to-day operations, simply finding the time to plan a major transition like this can be a challenge for many businesses. Fortunately, R&A has helped a number of clients walk through this process and can provide end-to-end support, making it less time-consuming and more efficient for everyone involved.

Our team will assess your current setup and recommend the right QBO subscription for your business. QBO offers five subscriptions tiers to date—Solopreneur, Simple Start, Essentials, Plus, and Advanced—each designed to match different business needs. A property management firm overseeing multiple rental units, for example, may need the Plus or Advanced to leverage location and project tracking to keep the financials separate. A small manufacturing business may prioritize inventory tracking and job costing built into Plus, but a consultant might only need the Essentials package for billing.

Once we establish the best version to use, our team will help facilitate a clean, complete, and secure migration of all financial data, followed by a high-level review of your new setup to make sure the information is accurate and workflows are optimized. We’ll train your staff on how to make the most of the new features in QBO and point out which ones have changed from QBDT. Staff training could also provide an opportunity to revisit processes and procedures, particularly where roles could be redefined or processes could be automated. 

Next Steps

As Intuit looks to move toward a cloud-first strategy and sunset its desktop platforms, it’s a good time to evaluate your options and establish a timeframe to migrate.

Our team is here to help you find the right version and guide you through the planning, so the transition feels seamless and supported. Contact us to learn more about how we can help.