Xero is an award winning and leading cloud based accounting software for small businesses and has over 1 million subscribers worldwide. It is known for its easy to use and “beautiful” user interface which enables users to connect regardless of their location or device.
Before starting the process of migrating to Xero, the following action points should be taken to ensure a smooth transitioning process. These action points could be handled by your accountancy practice or internally and would include the following:
- Consider – discuss the case for a change within the company
- Align – communicate and ensure all parties are onboard on the change in Accounting System and ensure all roles in the migration has been set (e.g. who is the project sponsor, project manager etc.)
- Plan – ensure that there is a project plan in place with key deliverable and deadlines assigned to be reviewed on a regular basis
- Migrate – start the process of implementation keeping in mind key deliverables along with working to troubleshoot unforeseen obstacles.
- Optimise – all data has been migrated and the company is now live on Xero – great however there may be process which could be optimised as well as analytics and reports which can be created to help with key business decisions. Furthermore, there are a number of third party apps, which can be integrated into Xero, which would help with efficiencies.
Moving to Xero is easier than you think. The process of migration can be completely hassle free migrating manually or via a third party application such as “Movemybooks” regardless if you’re moving from MYOB, Quickbooks or Sage. The following list are tips to help you with a successful migration.
- When converting to Xero, there are three methods available, the manual import, manual movement of journals and the conversion service.
- When posting prior period comparative data, use monthly movement journals.
- Do not post to a Bank account, Accounts Receivable or Accounts Payable via a Manual Journal, instead use spend money or receive money for bank account movement. Invoices and bills can be used for Accounts Receivable or Accounts Payable movement.
- Once all information and data has been entered into Xero, ensure that dates have been locked to prevent future changes.
Many businesses may then want their historical data imported into Xero for comprehensive prior period comparisons and in depth analytics. The process of including prior period data is not difficult but should be handled with care. Xero also allows you to import bulk data using CSV files, which will help to make this process smoother and easier.
Once you are fully live on the system, there are many processes, which can be optimised using Xero, these include the following:
- Repeating transactions – set up regular invoices or bills from or to the same people saving you data entry each time
- Budget – create a budget and report against it
- Bank Feeds – automatically get a bank statement every day rather than downloading it
- Tracking – break your account categories up further if you have departments or branches or activities to report on
- Users – add other users to login and view or update your accounts, they can have different ‘roles’ (access)
- Fixed Assets – add and record depreciation on your business assets to automate this process – move away from the excel fixed asset register
- Mobile App – optimise the benefits and services of Xero by encouraging employees to use the mobile app to process expense claims, they can even take pictures of receipts reducing paperwork!
We at Alpha Pro Partners are Xero Migration Certified. If you would like to know more about Xero or would like to take up our free implementation offer, submit your contact details here and one of our consultants will be in touch.
This article has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of its contents.