Even though QuickBooks makes it easy to upgrade your company file, it has no particular feature or tool that enables users to convert the QuickBooks company file to an older version. And the reason is quite simple – once a user upgrades the company file, he or she is unlikely to use it on a previous edition. Yet there are cases in which users want to downgrade the company file, a process that can be accomplished manually by exporting various transactions and lists from the later version into the older version.

In this post, you’ll learn how to convert QuickBooks Desktop company files to an older version.

Steps to Convert Quickbooks Desktop Company File to An older version

Step #1: Prepare to convert the QuickBooks Desktop company file to an older version

Here’s everything you’ll need to prepare to downgrade your company file in QuickBooks Desktop:

• Install both versions of QuickBooks:
  you’ll need both the versions of QuickBooks – the one you’re downgrading from and the one you’re downgrading to. Without the two software available to you, you cannot complete this manual process of converting QuickBooks company file to an older version. To download the setup for the correct version of this accounting software, you can go to QuickBooks Desktop Download Page.
  Note: you can install the trial version of QuickBooks if you don’t want to work with the current file after conversion.
• Create a backup of your company file:
  you can create a backup of your current company file before you export data and create a downgraded version of the same.
  • Switch to the Single-user mode from the File menu.
  • Go back to File, then choose to Create Local Backup from the Back-Up Company option.
  • Click on Local Backup, then Next.
  • Choose Browse, then select a directory to store the backup file.
  • Click on Ok after setting and verifying preferences for the backup file.
  • Click on Save it now, then Next.
• Install the latest updates:
  Install all the updates available for both versions of your accounting software.
  • Go to the Help menu.
  • Click on Update QuickBooks.
  • Check for updates and install any available for your version.
• You should definitely create and export the Sales Tax Liability report to ensure that you have the right numbers available for paying taxes to the relevant agencies. Here are the steps to create and export a Sales tax liability report in QuickBooks Desktop:
  1. From the Reports menu, choose Vendors & Payables.
  2. Click on Sales Tax Liability.
  3. Choose the Date Range or Choose All if you want to include the entire financial period.
  4. Click on the Print option, then choose Save as PDF. You can also choose to export the data as an Excel file.
  5. Select a folder to save the file. Input a name and click on Save.

You’re all set for the conversion process. As you have to perform the conversion manually, it may take time. First, you have to export the data from the current version of the company file, then import it into a company file created in the older version of QuickBooks. By moving systematically through each data type, you can successfully convert QuickBooks Desktop company files to an older version.

Step #2 – Migrate your accounting data to the older version of QuickBooks

First, you need to export all the essential accounting data from the upgraded company file before you can import the data into the older version of the company file.

Migrate chart of accounts to an older version of QuickBooks

A chart of accounts is the best place to start because it is essential for later classifying transactions and list items into QuickBooks. QuickBooks uses the chart of accounts to keep track of all the categories in your financial records. Each transaction or item is generally linked to an account to make tracking easier.

Without a properly set up chart of accounts, you’ll find it quite difficult to create important reports.

Steps to Export chart of accounts from the current version of QuickBooks

1. From the Lists option, click on Chart of Accounts.
2. Choose Reports from the bottom menu bar.
3. Choose Account Listings.
4. Choose Excel from the top menu bar.
5. Save the file in Excel format.

Once you have an excel file that contains all the accounts in your current company file, you can import the data from an older version of the company file using the 

Import chart of accounts into the older version of QuickBooks

1. From the Lists menu, choose Chart of Accounts.
2. Click on the Account drop-down option, then click on Import from Excel.
   
3. Click on Browse, then choose the Excel file that you want to import.
4. Click on Open after selecting the file.
5. Map your accounts correctly by altering the columns in the heading. You can use the following steps to map correctly:
   1. Type in the appropriate name to map the column to the account.
   2. Choose the Import type in the Account option.
   3. Match each column with the information in QuickBooks.
   4. Click on Save.
6. Click on Import.
7. When you get a confirmation message, click on Yes.

You can create a report of your chart of accounts to ensure that all the accounts were correctly brought into the older version of QuickBooks desktop. You can also manually create any missing accounts and input the missing opening balances, which summarize the transaction till date in that particular account. Opening balances are quite helpful if you don’t want to import each transaction that happened before the current date.

Migrate transactions

You should definitely convert the transaction details for the current year so that you can have accurate reports. These transactions will also help you to calculate profit and loss, and file taxes accurately. 

Export report

You can export transactions from a particular account using the reporting feature. Then you can import that report into the older version of the company file, completing the conversion process successfully. This process can take some time as you’ve to go through each essential account that contains important transaction data.

Non-posting transaction conversion

Once you’ve exported non-posting transactions from the current version of the company file, you can import the transactions into the older version. 

1. From the File menu, choose Utilities.
2. Click on Import, then Excel Files.
3. When the Add/Edit Multiple List Entries window shows up, click on No.
4. In the Import wizard, follow the steps provided below:
   1. Choose the type of data that you’re importing.
   2. View and verify your data when QuickBooks opens it in Spreadsheet format.
   3. Choose the option to Add my Data Now.
   4. Verify the results by viewing Data in QuickBooks desktop.
   5. Click on Close.

Note: you can simply record the opening entries for each account if you don’t want to convert transactions. This also saves time because the opening entries summarize all the previous transactions that took place in each particular account.

Migrate customer and vendor lists

While both customer and vendor lists are lists, they have to be dealt with in a different manner than the way in which you deal with other lists. So I’ve provided detailed steps to convert customer and vendor data to older versions of QuickBooks Desktop.

Export customer/vendor data from the current version of the company file:

1. From the Customer/Vendor center, click on the Excel drop-down menu.
   
2. Choose one of the two options:
   1. Export Customer/Vendor list: this will let you export data – name, contact information and balances – for selected customers and vendors.
   2. Export Transactions: this will let you export transactions on the basis of various parameters.
3. Click on Create a comma-separated value (.csv) file when the Export window appears.
4. Click on Export.
5. Input a name for the file that you’ll export, then choose a location to save the exported CSV file.
6. Launch the file using a spreadsheet program and edit it as per your preferences before you begin the process of importing the data into an older version of QuickBooks desktop.

Import customer/vendor data into an older version of the company file:

1. From the File menu, choose Utilities.
2. Click on Import, then Excel Files.
   
3. When the Add/Edit Multiple List Entries window shows up, click on No.
4. In the Import wizard, follow the steps provided below:
   1. Choose the type of data that you’re importing.
   2. View and verify your data when QuickBooks opens it in Spreadsheet format.
   3. Choose the option to Add my Data Now.
   4. Verify the results by viewing Data in QuickBooks desktop.
   5. Click on Close.

Migrate items

Next, let’s come to downgrade your list of items. These lists consist of mainly inventory items, but may include each item that you’ve created in the current version of QuickBooks Desktop.

Using these steps you can convert the following data types to older version of QuickBooks:

• Inventory items
• Service items
• Non-inventory items
• Sales tax items
• Purchase and discount items

Steps to export item lists from the current version of the QuickBooks Desktop company file:

1. Go to the Lists menu.
2. Choose the Item List option.
3. Choose the Excel drop-down list.
   
4. Click on Export all Items.
5. Choose Create a comma separated value (.csv) file.
6. Click on Export when ready.
7. Input a name for the file and choose a location to store it.

Launch file using a spreadsheet program so that you can edit as per your preferences before you import the item lists into QuickBooks Desktop.

Steps to import item list into an older version of QuickBooks Desktop company file:

1. Launch the older version of QuickBooks Desktop and open the company file in which you want to import the item list.
2. Go to the Lists menu.
3. Choose the Item List option.
4. Choose the Excel drop-down option.
   
5. Click on Import Items….
6. Follow the on-screen instructions and map the headings properly, then import the items.

You can repeat the steps to convert multiple lists to an older version of QuickBooks Desktop. After you’re done, create a report for the list in both versions of QuickBooks and match the result.

Conclusion

This process of transferring your accounting data to an older version of QuickBooks desktop may seem time-consuming, but it is definitely more affordable than relying on third party add-ons that charge a huge amount to facilitate the same function. I hope that you were able to convert the QuickBooks company file to an older version using the solutions provided in this post.

FAQ