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Validating data after importing it into QuickBooks Online is crucial to ensure accuracy and reliability. You’ll need to review and confirm the imported data meticulously, whether it's for yourself or a client. This guide will walk you through the steps of post-migration checks and confirmation of opening balances for various accounts.
First, perform post-conversion checks. Validate the data types you've imported to QuickBooks Online, ensuring they match and are accurate.
Verify the Conversion Date, which marks the opening account balance. Using the start of a tax period simplifies the migration process since it reduces the need to transfer all tax details from the previous accounting system.
Check Conversion Balances—the opening balances imported from your previous accounting solution. Ensure that the total debits and credits match. If discrepancies arise, adjust by manually recording missing entries, eliminating duplicates, or posting adjustment entries.
Review Comparative Balances from previous accounting periods. Having balances from past years provides better reporting and insights into your financial data in QuickBooks Online.
Match Outstanding Transactions, such as unpaid invoices and bills, with the balances in accounts receivable and payable. Reconcile these to confirm accuracy and post bad debt entries if necessary.
Set a Lock Date to close previous accounting years. This prevents anyone from modifying transactions before this date, usually aligning with the conversion date, but it can vary based on your needs.
After performing post-migration checks, confirm the opening balances for various accounts. Create reports to match data between your current and previous systems, ensuring accurate import into QuickBooks Online.
Generate a Trial Balance report listing all accounts and their balances. Ensure that the total debits equal the total credits. If not, investigate further to identify and correct discrepancies.
Create Sales and Purchase Reports, specifically aging reports for receivables and payables. These reports show outstanding invoices from customers and bills to vendors. Match the balances with customer and vendor accounts to ensure accuracy.
Perform a Bank Reconciliation for transactions recorded during the gap period. Connecting your bank account with QuickBooks Online simplifies this process.
Verify Fixed Assets with reports listing each asset and its value. Ensure you haven't recorded any fixed asset expenses incorrectly. Manually record depreciation values if they weren't imported from the previous system.
Check the General Journal Report for custom journal entries posted by users. This report helps identify and resolve any inconsistencies found in other reports.
Review key financial statements such as the balance sheet, income statement, and cash flow statement to ensure data accuracy post-migration.
Examine the Balance Sheet to confirm that total assets match the sum of total liabilities and equity. This alignment is essential for a correct financial overview.
Compare the Income Statement to check total expenses and revenues. Match the retained earnings with the net income in the balance sheet to ensure consistency between your previous system and QuickBooks Online.
Review the Cash Flow Statement to ensure all entries align correctly. Look for large deviations or suspiciously large numbers that may indicate inaccuracies.
Check Account Names and Numbers if activated in QuickBooks Online to ensure they align with your previous accounting system.
Review Fixed Assets in detail to ensure no expenses have been mistakenly recorded. This step is crucial to maintain an accurate asset register.
Match Net Income on the income statement with the balance sheet and the previous accounting system. Consistent figures across these reports indicate a successful migration.