By Amanda Karen | CrunchSum
You’ve done it. You’ve successfully imported your QuickBooks desktop company file to your new QuickBooks Online account. Congratulations! But, now what do you do? How do you know that your data imported correctly? How do you know that your data is accurate?
Save yourself time and many potential future headaches by following a few key tips listed below!
1. Confirm That Your Imported Data is Correct and Accurate
The most effective way to confirm your QuickBooks Online data is by comparing a copy of both your balance sheet and profit & loss reports.
What time of year you choose to import your desktop data to QuickBooks Online, may dictate which date range you run your reports for. A good rule of thumb is to run both your balance sheet and profit & loss reports as of the last fiscal year (i.e. 12/31/2012 – those same reports that you used for your prior year tax reporting purposes) in your desktop file and then generate these same reports using your newly imported QuickBooks Online data.
In QuickBooks Online: Reports > Balance Sheet OR Reports > Profit & Loss.
Select appropriate date range.
Check Reporting Basis
Make sure that you use the same reporting basis (either cash or accrual) when running the reports, and then compare these reports side by side.
Customize > Accounting Method; select appropriate method
Compare Major Numbers First
You can do a quick check to see that your desktop data imported correctly, by first comparing the balance sheet accounts: Total Assets, Total Liabilities, Total Liabilities & Owner’s Equity, and the profit & loss account Net Income. If the desktop generated numbers for these aforementioned accounts match those generated by the newly imported QuickBooks Online data, you are pretty safe to assume that your desktop data imported correctly. If these numbers do not match, you will need to go through each report line item by line item to identify where the variance lies.
Quick Tip: Before you start analyzing your accounts in search of your variances, you may be able to save some time by first consulting your CPA. You can bring the variances to their attention and ask them if they think that these variances are material (i.e. important/significant) to necessitate substantial research.
It is important to note that variances can be caused by any number of things. To learn about some import limitations click here.
2. Syncing Your Bank Accounts
Once you determine that your data has been successfully imported, the next thing you will want to do is sync your bank and credit card accounts to you new QuickBook Online account.
Setup online banking in QBO
Banking > Downloaded Transactions; follow the instructions for setup
Reviewing Downloaded Transactions
Once you have successfully synced your bank and credit card accounts, one thing very important to note, QuickBooks Online will automatically download the last 90 days worth of transactions for each synced account. When reviewing these transactions: (Banking > Downloaded Transactions) before accepting them in QuickBooks Online, make sure that you are aware of which transactions were already included in your desktop file (and therefore came through via the data import) in order to avoid having the same transaction recorded twice.
These are just two sure fire ways to quickly confirm that your data imported correctly and accurately so that you can start enjoying the many benefits of using QuickBooks Online right away. We, at CrunchSum, are huge proponents of QuickBooks Online and are glad that you have decided to make the switch.
What strategies do you use to confirm that your desktop data imported correctly to QuickBooks Online? We’d love to hear them! Leave a comment below or contact us: firstname.lastname@example.org.
CrunchSum provides web-based bookkeeping and QuickBooks support services to web and technology companies.