our conversion to the new accounting system is going to start with this video now I'm going
to show you the final data entry for the setup and conversion to the new system we've already
discussed accounts receivable and accounts payable and we've already discussed the fact that we only
have to enter currently relevant transactions to set these up we remember from previous videos that
they included open invoices in their original amounts and any payments or credits that have
been applied to those invoices and on the vendor side we have to enter all of the unpaid bills that
are currently open and in their original amounts and again we have to enter any payment or credits
that have been applied to those unpaid bills now this video assumes one of two things about
the students watching this video some students have already finished the mastering quickbooks
online course and have the correct results and they're ready to start the advanced course with
the correct numbers now if that's you you can just go directly to the advanced QBO course and
you don't have to finish this course about setting up a new system or converting from an old system
to a new one however if you are joining us new and you're going directly to the advanced course then
you will have to create a new QuickBooks Online account to start the advanced course and there are
several options in which you can get a brand-new QuickBooks Online account for free you should
watch the opening videos of the original mastering QuickBooks Online course for all the different
options you have for getting a quick book online account for free and I'm assuming that if you're
joining this course you already have your account ready and it's empty and it's ready to be filled
with the things that you want to put in to set up the beginning numbers of the Advanced Course which
will be the ending numbers of the mastering quickbooks online course now as we discussed
in previous videos you must enter the currently relevant transactions and follow this video step
by step and listen carefully to its instructions in order to make sure you're inputting everything
correctly and of course I'm going to show you what the transactions are and I recommend that
you pause the video at the moment you're entering each section of transactions this way you can read
the transactions and smoothly enter them into your quickbooks online to help setup using the
methods that we discussed in previous videos I am displaying here all of the open invoices in
their original amounts so that you can clearly read from the computer screen in this video and
record them into your new system one by one each column represents a piece of data that you need
to record in the invoice and remember they are the original amounts once you finish this you
will then move to the next part of your accounts receivable setup by entering all of the payments
that have been applied to those open invoices as of the conversion date and in our example we only
have these three payments that have been applied to some of the open invoices you saw a moment ago
now I want to tell you something this column here is a mistake that I made on purpose in other words
I know that these three payments have already been deposited in the bank as of the conversion
date when we're transferring over from one system to another but I want you to make this mistake and
choose undeposited funds instead of cash and bank this is because the following video will discuss
issues about setting up undeposited funds in the new system so enter the invoice payments exactly
as you see them here now the same thing goes with entering bills for vendors here are all
the currently unpaid bills that are open as of the conversion date from one system to the new
system notice they are in their original amounts and just like with accounts receivable all of
the payments to these bills have to be recorded in the amounts that are applied to the unpaid
bills so I am displaying for you here all of the payments that have been applied to these
bills that remain unpaid at the moment that we're changing systems from the old quickbooks
online course with those ending results to the new quickbooks advanced course where we will
begin with the same results i suggest you pause the video in each of these different positions
so that you can read them one by one and record them into your quickbooks online account when you
finish your results should look like this now what would it look like in QuickBooks desktop
if you entered all the transactions that I just showed you well the open invoice report should
look exactly the same as it looked of course some small differences but basically these are the open
invoices in the correct amounts because I entered the original amount of the invoices as well as the
payments that have been applied same thing with the unpaid bills here now you may well notice I
might have to scroll up and down to fit everything in but these are the same unpaid bills in the same
but because I did not enter all of the previous transactions in the complete mastering quickbooks
online course I only entered the ones that I just showed you we now have this trial balance
and this trial balance is the result of only the open invoices and the payments have been applied
and the unpaid bills and the payments that have been applied to them as well this trial balance
is almost ready to go and we're almost ready to subtract it from the ending trial balance of the
old system but everything I show you in QuickBooks desktop I'd like to show you in quickbooks online
so if your in quickbooks online you would click reports and of course the open invoices would be
the same it wouldn't matter what system you're using and this is the way it would look and of
course if we go back and we go to the unpaid bills again it's the result of the same transactions so
it shouldn't matter what system you're using you should still have all the same numbers now the
most important report is the trial balance these are the results only after the currently relevant
transactions for receivables and payables have been entered and we could use these numbers to
subtract from the original numbers to get the amount of journal entries we need to be able
to make that setup journal entry and then our numbers will begin correctly however there's
one more thing we have to do if your company uses the undeposited funds feature in QuickBooks and
you happen to have some undeposited funds at the moment that you're changing accounting systems
then you have no choice but to setup undeposited funds before you can make your main setup journal
entry and that's because undeposited funds is another separate area of data with details that
you will need in the new system no matter what it's attached to the accounts receivable setup
so you would have to set up your receivables and payables exactly as we discussed in this
course and then you would have to set up your undeposited funds don't worry the video showing
you exactly what to do and explaining exactly how to do it is the video that follows this one