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Planning for the Unforeseen: Your Guide to Transitioning from QuickBooks Online in Canada

Imagine waking up one day to find QuickBooks Online no longer available in Canada. For many small businesses and accountants, this could cause significant disruption. Preparing now for such a scenario can save time, reduce stress, and keep your financial records on track. This guide walks you through steps to take if QuickBooks Online becomes unavailable, what information you need to switch mid-year, and alternative software options not tied to the United States.




Start Preparing Now: Key Actions to Take


Waiting until QuickBooks Online is unavailable is risky. Start these steps today to ensure a smooth transition if needed.


1. Back Up Your Data Regularly


QuickBooks Online stores data in the cloud, but you should export your financial data regularly. Export reports such as:


  • Profit and Loss statements

  • Balance sheets

  • General ledger

  • Customer and vendor lists

  • Transaction history


Exporting data in CSV or Excel formats ensures you have access to your records independent of QuickBooks.


2. Review Your Current Chart of Accounts


Your chart of accounts defines how your financial transactions are categorized. Document your current setup carefully. This will help when setting up a new system to maintain consistency in reporting.


3. Understand Your Reporting Needs


List the financial reports you use regularly. Some software may not offer the same reports or formats, so knowing what you need helps you evaluate alternatives.


4. Identify Integrations and Add-ons


If you use apps connected to QuickBooks Online (e.g., payment processors, payroll services), note these down. You may need to find replacements or check if they integrate with other software.


5. Consult Your Accountant or Bookkeeper


Discuss your contingency plan with your financial advisor. They can provide insights on data migration and recommend software that fits your business needs.











Choosing Alternative Accounting Software Outside the USA


If QuickBooks Online becomes unavailable in Canada, you may want to switch to software not associated with the United States. Here are some popular options:


Wave.App


  • Origin: Canada-based company

  • Cost: Free for basic accounting features

  • Features: Invoicing, expense tracking, receipt scanning, and bank connections

  • Best for: Small businesses and freelancers looking for a cost-effective solution


Xero


  • Origin: New Zealand-based company

  • Cost: Subscription-based with tiered pricing

  • Features: Full accounting suite, payroll, inventory, and multi-currency support

  • Best for: Growing businesses needing robust features and international capabilities


Sage Business Cloud Accounting


  • Origin: UK-based company

  • Cost: Subscription-based

  • Features: Invoicing, cash flow management, and compliance tools

  • Best for: Small to medium businesses wanting cloud accounting with strong support


FreshBooks


  • Origin: Canada-based company

  • Cost: Subscription-based

  • Features: Time tracking, invoicing, expense management

  • Best for: Service-based businesses and freelancers



What You Need to Open a New Set of Books Mid-Year


Switching accounting software mid-year can be challenging but manageable with the right preparation. Here’s what you need:


1. Opening Balances


You must enter opening balances for all accounts on the date you start using the new software. This includes:


  • Bank accounts

  • Accounts receivable

  • Accounts payable

  • Inventory

  • Fixed assets

  • Loans and liabilities

  • Equity accounts


Use your latest balance sheet from QuickBooks Online as a reference.


2. Customer and Vendor Lists


Import your current customer and vendor contact information to maintain continuity in billing and payments.


3. Historical Transactions


Decide how much historical data to migrate. Some businesses choose to start fresh with the new software and keep old records archived. Others import transactions from the start of the fiscal year or a specific date.


4. Tax Settings


Set up tax rates and codes according to Canadian tax laws, including GST/HST and PST where applicable.


5. Payroll Data


If you run payroll, ensure employee information, pay rates, and year-to-date payroll data are transferred or recorded accurately.


6. Inventory Details


For businesses with inventory, update stock levels and item details to avoid discrepancies.



Tips for a Smooth Transition


  • Test the new software with a small batch of data before fully switching.

  • Train your team on the new system to avoid errors.

  • Keep QuickBooks Online accessible until you confirm the new system works well.

  • Schedule the switch during a low-activity period to reduce disruption.

  • Maintain clear communication with your accountant throughout the process.


 
 
 

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