Checking the conversion consists out of three basic steps:
1. Checking the balance sheets
2. Checking outstanding supplier and customer balances
3. Checking the built in accounts
Dataswitcher also checks the above things automatically. Both in a so-called pre-check and a post-check.
Please note when you converted from Xero, and have a multi currency company there will be differences in the amount of the unrealized foreign currency gains. Read more here.
1. Checking the balance sheets
You will need to make a printout of your trial balance per conversion date from the source system (your old software), and compare the end balances to the new balances in Quickbooks Online. You need to use the trial balance, not the regular balance. You might also want to check the conversion at different points in time, to make sure the balances are in order for multiple periods. It might happen that some amounts are shifted over periods, but the end balance of the conversion should be correct (dated today). This way you are sure all data is available in your new company.
Note that when you are using Cash accounting, compare the trial balances as being Accrual. Dataswitcher will bring over all data correctly, however different systems might calculate expenses and income differently on different dates. That's why you might see differences in certain dates.
* For Xero conversions with multi-currency, the rounding differences will show up. Please note that Xero reflects this as a Balance Sheet item, while in QBO, reflected as an P&L item.
** Conversion dates align between source and target systems
Although Dataswitcher is capable of detecting “Financial Period” settings, there are times when the conversion dates do not line up.
By checking QBO’s settings (via “Gears” icon, Advanced, First month of financial year) versus the source system financial settings, will make sure that financial reports will correctly be generated.
Checking outstanding supplier and customer balances
Suppliers and Customers balances
The outstanding balances of suppliers and customers in the source system (your old software) should line up with the new balances in your Quickbooks Online account. You can check this at random for around 5-10 customers and suppliers to make sure there are no discrepancies.
Account Receivables and Account Payable balances
Also check the historical Account Payable (A/P) and Account Receivables (A/R) on some random dates.
Produce the Ageing Summary Report in Quickbooks Online:
Use the same settings in the source system to produce the same report. Otherwise the columns might not agree and amounts might appear shifted.
Please also note that there might be discrepancies due to credit notes. In Quickbooks Online there is no way to specify a due date for a credit as opposed to other systems where it is possible. This can cause amounts appearing in the wrong column.
Please also note that when a multi-currency account was converted into home currency, the amounts will be in home currency and there will be no unrealized foreign currency gains or losses for your customers and suppliers.
* Should any zCustomer or zVendor appear in the AR and AP statements, there is a high chance that the source system has set more than one A/R or A/P linked account. In QBO, only one A/R and A/P account can be set. Please contact support for a detailed guide on reconversion when this happens.
2. Checking the system built in accounts
Dataswitcher also uses a suspense account to book payments on. This account is mostly booked to nominal code 1299. This account should be empty at the end of the conversion. This specific nominal code is used for transferring payments (if your tier is eligible for individual payments).
3. Finishing the checks
If all checks line up the conversion should be correct. If you think otherwise, please contact us via a support ticket so we can go through your issue in detail.