How do I enter historical information in QuickBooks Online?

To enter historical information in QuickBooks Online, you use the same transaction forms you use for current data. The only difference is that you date each entry in the past. The key is the order you enter things, which determines whether your reports and bank balance come out right.

Before you start

Gather your past invoices, bills, payments, bank statements and any other records. Decide on a cut-off date, often called your start date, before which all this historical activity falls.

If you need tax rates that differ from the ones currently active in your QuickBooks, set those up first. Otherwise the wrong rate may attach to your historical entries. Intuit’s documentation covers how to add tax rates in the Taxes area of the product.

What order should I enter things?

Enter transactions in this sequence to keep accounts receivable, accounts payable and your bank balance in sync.

1. Customer transactions: sales invoices, credit memos and payments received.
2. Supplier transactions: bills, supplier credits and payments made.
3. Bank and credit card transactions: money in and out, including transfers.

Recording sales and supplier activity first means that when you later enter bank transactions, QuickBooks can match them to open invoices and bills. Your bank balance then updates correctly.

Two ways to enter past sales

Choose the approach that fits your reporting needs. Both produce accurate figures.

Chronological entry

Enter every invoice, credit and payment in the exact order it happened. This recreates a full customer history and suits you if you need a detailed, date-by-date record.

Use the + New menu to create each invoice, dating it to the original issue date. When you record a payment, use + New and Receive payment, then apply it to the matching invoice.

Batch summary

Use this when your customers do not need copies of every past invoice, but you still need the totals for reporting.

Add up all outstanding charges and credits for each customer as of your start date. Create one invoice per customer summarising the net amount they owe. Then record any payments you have already received, dating the summary invoice and the payments to the day before your start date.

Recording supplier bills and payments

The same logic applies to accounts payable. Enter past bills and credits using + New and Bill or Supplier Credit. Record the payments with + New and Pay bills.

How do I handle banking transactions?

Once sales and purchases are in, enter past bank debits and credits. Go to Transactions and Bank transactions, or use + New to create a Bank deposit, Cheque or Expense directly. If you have connected your bank feeds, match or exclude the downloaded transactions as needed.

What about historical tax rates?

If you use the default tax rates in QuickBooks, simply select them on each invoice or bill. If you need a different rate for your historical period, add it in your tax settings before you start. Once saved, the rate appears in the drop-down on your transaction forms.

Following this sequence keeps your accounts receivable, accounts payable and bank balances aligned. Reports such as the Balance Sheet and A/R Ageing will then reflect the correct historical state.