When is the most suitable time to convert a QuickBooks Desktop company file that has payroll enabled?

The most suitable time to convert a QuickBooks Desktop company file that has payroll enabled is just after running payroll in QuickBooks Desktop. This timing is optimal because it ensures that all payroll-related data, such as employee hours, wages, deductions, and taxes, are up to date and accurately reflected in the company file.

By completing payroll before the conversion, you reduce the risk of any discrepancies or missing information, which could lead to errors in payroll calculations once the data is migrated to QuickBooks Online. All relevant payroll information will then be transferred over, allowing for a seamless continuation of payroll processes in the new platform.

This approach also allows users to validate the payroll data in QuickBooks Desktop before conversion, ensuring that everything is correct and complete. It is important to maintain accurate and complete financial records, especially in a payroll context, since payroll impacts both financial statements and compliance with tax obligations.