Although we try to make the data conversion as comprehensive as possible, there are still a few tasks you'll need to perform before you start using QuickBooks Online. It's best to complete these as soon as possible before you make any changes to the data or enter new transactions.
To perform these tasks, you'll need to be the primary admin of the QuickBooks Online company. If you created the QuickBooks Online company yourself, you're already the primary administrator.
If you aren't currently the primary administrator, you'll need to be invited. When you receive an email inviting you to become the Primary Administrator, select the Accept link in the email and sign in using your QuickBooks Online credentials.
In this article, you'll learn how to:
- Check your data by comparing reports
- Confirm company settings
- Confirm Sales Tax settings
- Clean up Sales Tax
- Tidy bank reconciliations
- Link payments/credits to open invoices
Step 1: Check your data by comparing reports
We suggest you compare the below reports in QuickBooks Online and in QuickBooks Desktop to ensure that your data was transferred correctly. To verify your reports, run the reports by "All Dates" and set your accounting method to Accrual in both QuickBooks Online and QuickBooks Desktop, even if you currently work on a Cash basis.
- Balance Sheet report
- Trial Balance - All dates
- Customer Balance Summary - All dates
- Supplier Balance Summary - All dates
- Sales Tax Summary report for the most recent period
- Any other reports you’d like to check
Expected Report Discrepancies:
- Cash Basis - Reports may not necessarily match using this accounting method simply because the Desktop and Online programs don't consider transactions as paid the same way.
- Inventory Recalculation - Your reports may not match up if you imported your inventory information due to FIFO recalculations that may have taken place. See Import Limitations - QuickBooks Desktop to QuickBooks Online for more details.
- Multicurrency - Transactions with 3 different types of currencies involved do not convert to QuickBooks Online at this time. See Import Limitations - QuickBooks Desktop to QuickBooks Online for more details.
Step 2: Confirm company settings
Although we’re able to move your accounting figures into QuickBooks Online, we don’t carry over information like company name, address, and email details. You'll need to enter this information in your QuickBooks Online company.
- Go to Settings ⚙ and select Account and Settings.
- On the Company tab, enter your company and contact information.
- You also need to update the email addresses to ensure billing communications and customer communications are handled correctly.
- Enter the email address in the Company email box where you would like to receive the monthly invoices from Intuit for your QuickBooks Online subscription.
- If you do not want to use the Company email address for your customers to contact you, then enter the email address in the Customer-facing email box that you want your customers to associate with your business.
- Select Save.
Step 3: Confirm Sales Tax settings
It’s important that QuickBooks Online is set up with the correct CRA Business Number and filing frequency before you and/or your client start using it. You can skip these steps if your business isn’t registered for Sales Tax.
- Go to Taxes and select Sales tax (Take me there).
- Select Manage sales tax and select Edit agency settings.
- Enter GST/HST number.
- Check that the Reporting method is correct and change the Filing frequency if required.
- Select Save.
Step 4: Clean up Sales Tax
Sage 50 Accounting
Sage uses 2 accounts (4 in Québec) to track Sales Tax and post-migration steps to consolidate sales tax into the single GST/HST Payable account in QuickBooks are required. Please follow the steps given in the video below to consolidate your tax accounts:
Other Software
Since you have not yet filed sales tax using QuickBooks Online, QuickBooks Online assumes that all GST/HST recorded in the accounts is now due, resulting in the wrong amount being shown for the GST/HST balance.
To ensure the GST/HST balance is the correct amount and that future GST/HST returns are accurate, you need to tell QuickBooks Online when your GST/HST has been filed up to.
To clean up GST/HST:
- Go to Taxes, select Sales tax (Take me there), then select Prepare Return.
- On the Prepare GST/HST Return screen, enter the following details:
- Set Start Date as the start date of the conversion period.
- Set End Date as the last date of the period covered by the most recent GST/HST return.
- Select Mark as Filed, then Continue to confirm that the GST/HST returns have been filed up to the To Date.
- You’ll be taken to the GST/HST screen.
Enter a reverse journal entry to ensure your current balance is correct:
- Go to Transactions, and select Chart of accounts (Take me there).
- From the Chart of Accounts, choose GST/HST Suspense account and then select Account history.
- Find the GST/HST transaction you just created, then select Edit.
- On the Journal Entry screen select Reverse.
- A new GST/HST Suspense line will be added to the list. If you like, you can type a note into the Description column to show that this was a Post System Migration Task or similar.
- Select Save and new.
The balance shown in QuickBooks Online should now be correct, ensuring that future GST/HST returns are accurate.
Step 5: Tidy bank reconciliations
Since you have not yet performed a bank reconciliation in QuickBooks Online, QuickBooks Online assumes that no bank transactions have been reconciled. You need to tell QuickBooks Online to mark all transactions up to the conversion date as reconciled, so it only considers future transactions for reconciliation.
- Go to Settings ⚙ and select Reconcile.
- Choose the relevant bank account from the drop-down. Enter the Ending balance and Ending date, then select Start reconciling.
- You will see a list of transactions. Select all transactions in the list. If the data is in two columns, make sure you’ve selected all transactions in both columns. Then find and uncheck transactions that are still uncleared. When the difference is Zero that means you have completed these steps successfully.
- Select Finish Now.
- It is important to repeat this process for all bank accounts in QuickBooks Online.
Step 6: Link payments/credits to open invoices
Since the transactions downloaded into QuickBooks Online did not link the invoices with their respective payments, you may notice names that have zero balances in your A/R and A/P aging reports. You can easily link credits/payments to your open invoices by turning on the Automatically apply credits preference.
- Go to Settings ⚙ and select Account and settings.
- Select the Advanced tab.
- Select Edit in the Automation section.
- Select Automatically apply credits, and then Save.
Start using QuickBooks Online
Once you’ve performed the tasks described in this document, you can start using QuickBooks Online. If you have any questions about any of these tasks, you can contact the QuickBooks Online support team.