If you are starting a new QuickBooks company file for an existing company, you probably want to enter all those old transactions from the company into QuickBooks so that you can track current performance versus the past. For many landlords’ businesses, this is the right approach, and we will present two methods to quickly enter these historical transactions.
But for other businesses (especially the very small) it may make sense to cut over to use QuickBooks and leave historical reporting in your old system (Quicken, Excel, etc). If you create summary reports and some spreadsheets you can get a lot of the benefit of comparison, but less effort in migrating the data.
Forms method to ender historical transactions in QuickBooks
First, you can re-enter every transaction using the forms and windows you would normally. (Create invoices, receive payments, etc.) This is a great way to learn how to enter new transactions into QB’s. We recommend it for everyone to try, even if only to scrap that company file, as you learn much about how to do property management in QuickBooks by entering actual transactions.
If you do this, the order you enter the transactions is important, do it in the following order.
Enter Accounts Receivable in this order:
- Statement Charges
- Cash Sales
- Customer Payments
- Deposits of customer payments sales tax payments
Enter Accounts Payable in this order:
- Credits from vendors
- Bill Payments
Enter historical payroll txns.
Enter bank and other txns in the following order:
- Checks (do not duplicate bill payments)
- Deposits (do not duplicate customer deposits) bank fees and transfers
- Credit card transactions
Reconcile each bank account for each month as you go. Getting each month perfect will save a lot of time versus having to reconcile many months at once.
Summary journal entry method (“monthly rollup transactions”) to enter historical transactions in QuickBooks
This method is more useful for quickly entering your transactions, but only gives transaction data on a monthly rollup level.
Enter all historical transactions by creating a summary journal entry for each month between the start date and current date. Each entry will have the net impact of the month: rent receipts, maintenance (per property/class), capital investments per property’s asset account, owner draws, etc. You can enter in on the first of the month, for all transactions that happened each month.
Remember, even though this is not entirely accurate, it gives you a granularity that enables year over year monthly comparisons. For some people this is helpful enough, and potentially faster to calculate these net transactions from their old system than enter everything individually.
Reports to verify correct entry of old transactions into QuickBooks.
There are several reports you can run after migrating the data to ensure your new company file has the correct information.
- Run a Balance Sheet report as of the start date to verify beginning account balances.
- Generate a Profit and Loss report for periods since start date to verify historical transactions.
- Create an Open Invoices report and verify accounts receivable as of the start date.
- Use the Unpaid Bills report to verify accounts payable details as of the start date.
- Verify inventory by running inventory valuation summary report (probably not applicable for rental property companies).
- Run the Payroll Liabilities report to verify payroll liabilities detail as of the start date.
- Use the Payroll Summary report to check year-to-date payroll transactions.