I appreciate the amount of details you included in this post, Shel. I'm here to explain why cash basis reports have a different balance compared to accrual basis.
When transitioning from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO), you might notice some differences in your financial reports. Accrual basis reports in QBO will match your reports in QBDT. However, cash-basis reports may not match since the Desktop and Online versions don't consider transactions as paid the same way.
Accounts receivable in a cash-basis company depend on the payment dates or when you received the amount, which affects the bank. You need to correct the dates since they will also affect the data displayed on the report.
If you want to eliminate the negative account receivable, you need to apply it to the invoices as payments and date it to when it was deposited. You must also check any unapplied payments in QBO and then use them correctly to the invoices to remove the negative accounts receivable.
To gain a deeper understanding of how your features and data transition from QBDT to QBO, you can read this article: Learn how features and data move from QuickBooks Desktop to QuickBooks Online.
If you want to learn more about the steps you should take after moving from QuickBooks Desktop to QuickBooks Online, you can read this article: Learn what to do after moving from QuickBooks Desktop to QuickBooks Online.
Feel free to reach out whenever you need help managing accounts receivable and running reports. We're looking forward to supporting you in making your financial management as smooth and efficient as possible. Have a great day and happy bookkeeping.
