By the end of this section of our QuickBooks Online data migration course, you’ll know how to select the best method for migrating your accounting data to QuickBooks Online. You will also learn how to set up your chart of accounts and bank feeds, and discover resources to help you during the migration process.
Overview of the section
Here's a quick look at what you'll learn:
- Conversion Methods: Learn how to choose the best conversion method for your data migration.
- Chart of Accounts: Discover how to set up a chart of accounts that works best for your business.
- Bank Feeds: Find out how to select the right bank feed options for your needs.
- Available Resources: Explore resources that can guide and support you during your migration to QuickBooks Online.
Conversion Methods
Choosing the right conversion method is crucial for a smooth transition to QuickBooks Online. Depending on the amount and type of data you need to migrate, you have several options.
Types of Conversion Methods
There are different ways to transfer your data to QuickBooks Online. The best method for you will depend on the complexity and volume of your data.
- Manual Conversion: This method involves manually entering your data into QuickBooks Online. It’s hands-on and allows you to spot and fix any errors as you go. It’s ideal if you have a small amount of data or if accuracy is critical.
- Partially Automated Conversion: This method uses tools that automate parts of the conversion process, reducing the amount of manual entry you need to do. This is a good balance for medium-sized datasets, offering both efficiency and control.
- Fully Automated Conversion: This method uses software tools to automate the entire data migration process. It’s perfect for large datasets and is the quickest method, although it might require some oversight to ensure data accuracy.
- Bulk Conversion: If you have a large amount of data or multiple sets of books to convert, bulk conversion is the way to go. This method is typically handled by a conversion service, saving you time and effort, but it can be more expensive.
Migrating Historical Data
The amount of historical data you decide to migrate will significantly affect your conversion process. It’s important to consider the costs and benefits of bringing over all your historical data. If having a complete history is essential for your business, make sure you plan accordingly.
- Conversion Balances Only: The fastest way to get started with QuickBooks Online. You only enter the essential balances needed for conversion.
- Comparative Balances: This involves adding balances from previous years to compare your current financial performance against past data. It’s useful if you need to look at year-over-year comparisons.
- Full Historical Data: Converting all your data gives you a complete financial history in QuickBooks Online. This is the most complex and time-consuming option but provides the most comprehensive records.
Choosing the Conversion Date
Your conversion date is the starting point for entering transactions into QuickBooks Online. It’s typically the first day of a month. Depending on your needs, you might choose a date in the future to prepare in advance or a past date to include historical transactions.
Pro Tip: Avoid entering transactions in both your old system and QuickBooks Online simultaneously to minimize confusion and reduce the risk of errors. It’s best to start with QuickBooks Online at the beginning of your next reporting period.
Chart of Accounts
Setting up the right chart of accounts is crucial for accurate financial reporting and effective bookkeeping. There are several approaches to setting up your chart of accounts in QuickBooks Online.
Chart of Accounts Options
- QuickBooks Default: Use QuickBooks’ built-in chart of accounts. This is straightforward and a good option if you’re new to QuickBooks.
- Existing Codes: Transfer your current chart of accounts to QuickBooks Online. This keeps things consistent and familiar.
- Master Chart of Accounts: Use a template tailored to your industry. This ensures a standardized setup that’s relevant to your business needs.
- Custom Setup: Create a custom chart of accounts based on your specific requirements. This is ideal if you have unique accounting needs.
Bank Feeds
Bank feeds are an essential feature of QuickBooks Online that allows you to automatically import transactions from your bank, making it easier to keep your books up to date.
Bank Feed Options
You have several options for setting up bank feeds in QuickBooks Online, each offering different levels of automation and convenience.
- Direct Feeds
Direct feeds automatically send transactions from your bank to QuickBooks Online. This option provides real-time updates and is the most convenient. - Third-Party Feeds
If direct feeds aren’t available, third-party options like Yodlee can fetch transactions from your bank and import them into QuickBooks Online. You may need to manually update the feed if your bank requires multi-factor authentication. - PayPal Feeds
If you use PayPal for payments, you can set up a direct feed to automatically send transactions to QuickBooks Online. These updates typically occur every 12 hours and may need manual refreshes for the latest transactions. - Manual Imports
When automatic feeds aren’t available, you can import transaction data manually using OFX, QIF, or CSV files. This method requires more effort but ensures that your transactions are accurately recorded.
Gathering Bank Data
Ask your bank for a recent statement, which will contain all the information you need to set up bank feeds. If your bank requires online banking credentials, you might need to follow specific instructions to set up the feeds yourself.
Available Resources
QuickBooks offers various resources to help you migrate your data smoothly and efficiently. These tools can guide you through each step of the process.
Summary
In this guide, we’ve covered:
- Conversion Methods: How to choose the best method for migrating your data.
- Chart of Accounts: Setting up the right chart of accounts for your business.
- Bank Feeds: Selecting the best options for importing your transactions.
- Available Resources: Utilizing support tools to facilitate your migration.
Next Steps
Begin by evaluating your data migration needs, selecting the appropriate conversion method, setting up your chart of accounts, and establishing bank feeds to ensure a smooth transition to QuickBooks Online.