Reconciliations After Migrating from QuickBooks

Migrating from QuickBooks Online (QBO) into Digits gives you a clean, modern ledger — but bank reconciliations work a little differently than many users expect at first.

This article explains:

• Why do migrated reconciliations not appear as complete

• What a cutover reconciliation is (and why it matters)

• How to complete a one-time cutover reconciliation

• How this unlocks fast, accurate AI Bank Reconciliations going forward

Behind the scenes: Bank statements may be ingested, and AI reconciliations may begin automatically as soon as statements are uploaded or synced — even if you haven’t visited the Reconciliations page yet. This is helpful once your cutover is complete, but it’s why establishing a clean starting point first is so important.

If you’re seeing a large number of uncleared transactions after migration, this is expected — and fixable.

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Why do the reconciliations look unfinished after migration?

When you migrate from QuickBooks:

• Digits imports historical transactions and balances as of your chosen cutover date

• Digits does not import the historical reconciliation status from QBO

This means:

• Transactions that were previously reconciled in QBO are not marked as reconciled in Digits

• When bank statements are uploaded or synced, Digits correctly attempts to reconcile all visible ledger activity

As a result, opening your first reconciliation can show hundreds or thousands of uncleared items — even though your books were already reconciled in QBO.

This does not mean AI Bank Reconciliations aren’t working. It means Digits needs one clean starting point.

AI Bank Reconciliations can automatically match statement lines to ledger transactions, but they cannot infer which historical transactions were already reconciled in another system. That context must be established once through a cutover reconciliation.

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What Is a Cutover Reconciliation?

A cutover reconciliation is a one-time reconciliation completed at the point you move from QuickBooks to Digits.

It’s different from a traditional monthly bank reconciliation:

🚫 You are not matching every transaction line by line

✅ You are confirming that Digits’ opening balance matches your final reconciled balance in QuickBooks

Think of it as telling Digits: “Everything before this date was already reconciled in QBO—trust it and start fresh from here.” Once this is complete, Digits has a trusted baseline—so AI Bank Reconciliations can work efficiently going forward. It also helps you confirm that your migration to Digits is complete and accurate, since you’re validating the starting point Digits will use moving forward.

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When should you do the cutover reconciliation?

You should complete a cutover reconciliation before relying on AI Bank Reconciliations for future periods.

Best practice:

• Use the last fully reconciled bank statement in QuickBooks (for example, 12/31/2024)

• Complete the cutover reconciliation first

• ✨ Then, let AI Bank Reconciliations automatically reconcile your bank and credit card accounts moving forward.

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Before You Start

Important: Complete these steps before uploading any bank statements to Digits.

If you have already uploaded statements

If bank statements were uploaded or synced before completing the cutover reconciliation, Digits may have created draft reconciliations for later periods.

We know this cleanup can feel tedious. Unfortunately, reconciliations must be completed in order, so this one-time reset is required to establish a clean baseline.

1. Go to Accounting → Reconciliations

2. Find the earliest draft reconciliation (the oldest period)

3. Click Delete — later draft reconciliations should be removed automatically

Once drafts are cleared, complete the cutover reconciliation steps below. Then, if needed, drag and drop the subsequent months’ bank statements into Accounting → Reconciliations so AI Bank Reconciliations can finish reconciling your post-migration periods.

Note: You may see duplicate statements in Documents from your earlier upload. These can be safely ignored or deleted for cleanliness—they won't affect your reconciliations.

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How to complete a cutover reconciliation

1

Confirm Your Cutover Date

Choose the last date your bank account was fully reconciled in QuickBooks.

Example:

• Migrated to Digits effective 1/1/2025

• Last reconciled QBO statement date: 12/31/2024

2

Create a Cutover Reconciliation for Each Account

For each bank account and credit card:

1. Go to Accounting → Reconciliations

2. Click + Start Reconciliation in the top right corner

3. Select the account you want to reconcile (very top dropdown)

4. Enter your reconciliation details:

5. - Statement Date: Your cutover date (e.g., 12/31/2024)

6. - Ending Balance: The final reconciled balance from your last QBO bank reconciliation

7. Click Build Reconciliation

3

Mark All Transactions as Reconciled

Once the reconciliation opens:

1. Select all transactions using the checkbox at the top of the list

2. Use Bulk Actions → Mark as Reconciled

3. Verify the ending balance matches (Unreconciled Difference should be $0.00)

4. Click Finalize

All pre-cutover QBO transactions are typically marked as reconciled automatically after import. If your balance doesn’t reconcile right away, wait a moment and refresh the page—Digits may still be finishing the update. If it still doesn’t match, check for any manually added or separately imported transactions.

4

Upload Your First Post-Migration Statement

✨ Now you're ready for AI Bank Recs:

1. Go to Accounting → Reconciliations

2. Drag and drop your first post-cutover bank statement (e.g., January 2025)

3. Digits will auto-match transactions and create a draft reconciliation

4. Review any flags, then finalize

From this point forward, AI Bank Reconciliations will work as expected—matching only the new transactions to your uploaded statements.

Related: Troubleshooting Cash Totals: Verifying Opening Balances

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Frequently Asked Questions

Why do I see hundreds of "Missing transaction" flags in my first AI reconciliation?

This happens when you upload a bank statement before completing a cutover reconciliation. Digits is comparing your statement to the ledger but doesn't know that the historical transactions are already accounted for. Complete a cutover reconciliation to resolve this.

Can I skip the cutover reconciliation?

Technically, yes, but it's not recommended. Without it, every AI reconciliation will include uncleared historical transactions, making it difficult to identify genuine issues. The cutover reconciliation takes a few minutes and saves significant time downstream.

What if my cutover date doesn't align with a month-end?

That's okay. Use whatever date represents your last reconciled point in QBO. Digits reconciliations are flexible and don't require month-end alignment.

Do I need to re-reconcile everything from QBO?

No. The cutover reconciliation marks all pre-migration transactions as reconciled in bulk. You're trusting that QBO was accurate—you don't need to re-verify each transaction.

My ending balance doesn't match. What should I do?

Double-check your ending balance from your final QBO bank reconciliation. If there's a discrepancy, you may need to adjust opening balances. See: Troubleshooting Cash Totals: Verifying Opening Balances

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Got a question or feedback? Our team is all ears—come say hello!

Contact Digits Support

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