5 Step Guide to Prepare for your Xero Migration

By Sharon Casagrande

April 21, 2021
Xero Migration

So you’ve decided to make the move to Xero and want to know what’s next? Changing accounting systems can be scary, but there are some things you can do to make the process easier.  


We have developed a 5 step guide to preparing for your Xero Migration.  Read below for more information.


1. Choose a date


The conversion date is the date that you stop using your old accounting system and start using Xero.  Make sure that this is not a busy period for your business and that it doesn’t conflict with any important dates.   For example, if critical admin staff need to be on board, make sure it doesn’t conflict with annual leave dates.  


There may be a short period of time during which you won’t be able to enter transactions into your accounting file.   This is why choosing the date of the conversion is so important.  This ensures that you don’t have to enter information twice and reduces errors in the file.


The end of the financial year is always a good time for a fresh start, but if you don’t want to wait until then, the end of a quarter or end of the month is preferred. 


2. Determine Your Conversion Requirements


How much data do you need to be transferred to Xero?  Do you require a detailed transaction history or just monthly totals?  The amount of data you require will affect the time it takes and the price involved.  However, if you want to completely say goodbye to your old accounting system, you may need to transfer a detailed history to Xero so you have the information in the event of an audit.  


Think about whether historical data is essential or just nice to have.  If you regularly review reports and monitor KPIs and want to be able to analyse trends over time, you will need historical data.  However, if you don’t need historical data, the process is much simpler.  It’s a matter of weighing up the pros and cons and determining what’s right for your business.


3. Clean Up Your Data


Just like when you move house, you want to have a clean up so you don’t take all your old mess with you.  The same applies to a software migration. It’s important to clean up your old file before moving to Xero.


Examples of clean up items that should be done before the migration:

  • Ensure the Bank accounts are reconciled and fix any old outstanding entries.
  • Review your list of customers and suppliers and remove any old contacts that aren’t needed anymore.
  • For Accounts Payable and Accounts Receivable, apply credit notes that are outstanding and remove any old entries or duplicates.
  • Review chart of accounts and archive any accounts that are not being used


4. Choose a Xero Hero


If you have a team working in your business, find someone who is passionate about the project and make them your Xero Hero.  That person can be in charge of making sure everything goes to plan.   This person will have access to all areas of Xero and be able to add or remove users.


Once Xero is set up successfully, your Xero Hero should keep up to date with any training and new developments with Xero that would help your business run more efficiently.


5. Export Reports


There will be reports that need to be exported from your old system.  This can be in excel or pdf.  Typical reports that are needed are:

  • Trial balance
  • Trade Creditors
  • Trade Debtors
  • Bank Reconciliation
  • General Ledger


These reports will be used to compare to the reports in Xero after the migration.


Now it’s time for the Migration


If you are using an accounting specialist to look after this, we will handle this part for you. You can sit back and relax while the migration is being done. 


During this time, your accounting specialist will carry out tasks such as:

  • Import data from your old accounting system into Xero
  • Checking the data that has been imported into Xero to make sure it matches your previous system
  • Customising Xero settings for the needs of your business
  • Setting up bank accounts and getting ready for automatic bank feeds
  • Setting up users and their roles
  • Setting up your Dashboard and watch list to monitor the important aspects of your business
  • Setting up tracking categories (if needed)
  • Customising report templates
  • Customising customer invoices


The cost of the conversion and the time it takes to complete the conversion will vary depending on the software you are currently using.  Using a conversion specialist saves you time and ensures that the data is accurately transferred from your old system.


Ready to Migrate to Xero?


For a seamless migration, make sure you use a Xero certified advisor.  Using a specialist saves you time and ensures that the data is accurately transferred from your old system.


Passion Business Advisor’s Xero Set Up & Migration Services can help you and your team streamline your accounting processes leaving you more time to do the meaningful work you’re passionate about.


If you’re ready to get started simply book in your migration today! 

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