Process of Converting Turbotax files to Lacerte
Converting TurboTax files to Lacerte is a popular exercise among tax professionals. This guide is like a handbook for the transformation process. This blog is a guidebook to support clients’ migration from TurboTax files to Lacerte.
Understanding the Need for Conversion
Two typical software applications, TurboTax and Lacerte, are used frequently in tax preparation. Sometimes, a user is required to shift data from one software to another.
This can be due to changes in software providers or working with tax professionals from another team.
Steps to Converting Turbotax Files to Lacerte
Many steps must be followed to convert Turbotax files to Lacerte. First, creating a backup of Turbotax files for data conversion is essential. Users should list all files and remove passwords and locks to ensure a smoother conversion.
Here are the steps to create a backup for conversion:
Step 1: Click a new folder by clicking +New Folder in C Drive. Name this Folder
Step 2: Copy all TurboTax saves tax files in the My Documents to this Folder
Note: Follow these steps in case you can’t locate files:
- Go to the Start menu button of the system, which holds the Turbotax files
- Enter .tax2023 in the search box
Step 3: The files will appear in the Search
Step 4: Step to select all files which need to be converted to C:\ConversionData
Step 5: Open C:\ConversionData & check files that have been backed up.
Also Read: Lacerte or ProConnect: Which one should you choose for tax practice
Preparing for the Conversion
Before you start Converting TurboTax files to Lacerte, list the primary items.
First, ensure that both the software programs for TurboTax and Lacerte function correctly.
The details on the TurboTax files reveal organized data and customer information truthfully.
Exporting Data from TurboTax
The first step of the conversion process is getting data from TurboTax to Lacerte.
When you open the client file through TurboTax, you can export the file that needs to be converted.
On TurboTax's submenu, navigate to the export option and choose the format compatible with Lacerte’s imported requirements.
Selecting the Correct Export Format
Some formats with TurboTax can be exported before being incubated on other software. You can choose the one suitable for Lacerte between the “Tax Exchange” and the “.txf” file formats.
The tax exchange format is the proper format, as most of the tax information in the file can be successfully imported to the lacerte file using this format.
Saving the Exported File
After selecting the export option, a window will pop up; you should pick a destination folder for the file you want.
A given destination folder should contain chosen files and folders for saving the file.
Write down names and destination folders so that you can refer to them for future conversions.
Preparing Lacerte for Import
First, start the Lacerte software and prepare it for importing the data. Move to the import area in Lacerte’s menu system.
The first step is picking the data you want to move from your existing tax software to another.
Importing Data into Lacerte
The Import Document feature of Lacerte provides the option to import data solely from TurboTax.
Don’t forget to pull that file from the folder you used before. The program will then import the information, which will be processed on Lacerte.
Reviewing Imported Data
After it has been imported, one should thoroughly check the data by taking a few minutes to go through the operation.
Before running the procedure, it is reasonable to analyze whether the Lacerte file contains any mistakes or information shortages.
Double-check the details of the personal data, the income figures, and deduction amounts.
Handling Conversion Errors
Composing errors during conversion can occur; however, not all data may be moved during the process.
Make sure you save the error message or the warning signal that appears on Lac.
Go through the TurboTax document from the beginning to resolve each problematic raw data.
Manually Entering Missing Information
Data that cannot be transferred automatically requires manual entry. When done, compare it to the Lacerte file on the right. Enter any missing information slowly and carefully.
Verifying Tax Calculations
After checking that all the data was transferred correctly, double-check that the tax calculations are done correctly.
You shall check the figures and compare them to the original TurboTax files. To get a valid comparison, you must indicate the discrepancy.
Reviewing Tax Elections and Preferences
Review your TurboTax file’s settings related to tax elections and preferences.
Unlike in the previous situation, the options were set correctly in TurboTax, but do they eventually mirror the Lacerte document?
If necessary, make some changes to the client’s current tax strategy that the settings respond to based on the current data.
Updating Preparer Information
Lacerte file’s details about a tax preparer who provided the tax data should match those of the tax preparer given before in the TurboTax file.
By updating firm-specific information, such as street addresses, we can have accurate correspondence and the proper filing of documents.
Reviewing Client Communications
Review the client’s tax file records containing notes and communication exchanges.
If permitted, transfer relevant data to the Lacerte client management system. Do not lose any essential details after the conversion process has occurred.
Performing a Final Review
The final stage is to run all the converted tax returns in Lacerte for any mistaken entries.
Double-check essential numbers and variables compared with the original TurboTax operation.
Take care of any remaining differences or problems before drawing the line to conclude the conversion.
Documenting the Conversion Process
Please write down the steps you took during the conversion process, any issues you faced, and how you fixed them.
This documentation will also help handle future conversions or troubleshooting.
Client Notification and Approval
Ensure the client is aware of these changes and involved in the conversion process. The new electronic document opens up many opportunities for meeting our business’s common goals.
However, at this stage, you should ask for an extended conversation to discuss disagreements and settle doubts.
Here are the practical steps to Converting Turbotax files to Lacerte
Step1: Download & Open Lacerte or ProSeries Data Conversion wizard
Step 2: Go to the Import menu, select Client Data Conversion & click Submit Client Data for Conversion
Step 3: Click Next
Step 4: Select the software you are converting from the field, select the dropdown arrow
Step 5: Select the Intuit Software that will pre-populate
Step 6: Select the Tax Year to convert from
Note: A list of client files will appear with each box checked.
Step 7: Uncheck files that do not need to be converted from Turbotax to Lacerte
Step 8: Select Submit
Note: Confirmation will pop up. An email will be sent to the address that was mentioned.
Step 9: Click Done to close the Wizard
Step 10: Download the converted client data — Select your tax product and follow the steps to download your converted client data.
Conclusion
Conversion of TurboTax files to Lacerte requires a complete focus on piloting and ensuring the implementation of reliability and validation. This all-encompassing guide can be followed by professional accountants who want to be more efficient in their tax services.
