How to convert from Reckon to Xero

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Co workers learning how to convert data from Reckon to Xero
Cloud Accounting
Partner & Head of Tax
February 28, 2020
minute read

How Liston Newton can help you convert your accounting software from Reckon to Xero

Reckon is a financial system that has been around for some time now. It rose to prominence as one of the only systems that automated the process from journal entries to data display, into Profit & Loss statements, balance sheets, and more.

But things change, and the rise of Xero has seen Reckon fall by the wayside. Xero’s cloud-based approach offers more benefits and features than is available to Reckon users.

As Xero Gold Partners we’re advocates for this sleek, streamlined system. Its online access from any device, and intuitive operating system, are two of the many reasons we recommend business owners transfer their accounting system over to Xero.

If you’re ready to convert from Reckon to Xero, get in touch with Liston Newton today to discuss making the switch.

Converting your data from Reckon to Xero

Converting your data from Reckon to Xero

While Xero is designed to be as user-friendly as possible, converting your financial system from Reckon to Xero is a complex process. There are many items that need to be checked in your current system before transfer to a new system can begin.

To ensure the transfer process runs smoothly, it’s important that you have the data you’re converting reviewed by a qualified Xero accountant.

To begin the process, you must:

  • Review your data to ensure that it’s fully reconciled and up-to-date
  • Confirm there are no previous year issues
  • Decide on a ‘go live’ date that won’t impact your business.

When your data is ready to transfer, contact a Liston Newton Advisory Xero specialist for support in setting up a smooth data conversion.

We provide the following:

  • A free 90-minute Discovery Meeting. We’ll sit down with you to review your current software, determine what you need transferring to Xero, and create a timeline of how the conversion will roll out.
  • Undertake your Xero conversion for you by important your Reckon data to your new Xero platform. This includes both the current and previous financial year.
  • Customise your Xero account to match your business needs. This includes your Chart of Accounts, contacts, GST codes, and reports.
  • Ongoing phone and email support during and after your conversion to Xero.

Preparing and uploading your files

Prior to converting from Reckon to Xero, it’s important that your information is correct. This includes:

  • Chart of accounts
  • Current sales invoices (aged receivables)
  • Any current bills (aged payables)
  • Payroll data
  • Contact information
  • Fixed assets

If this information is incorrect it can lead to over- or understating your income and expenses, bank reconciliation errors, and payroll delays.

You can prepare these files for export in a CSV file. This allows for quick, efficient import into Xero. When it comes time to import the CSV files, you can them transfer them into a Xero-appropriate file in the platform itself.

Historical information that’s passed the four-year amendment period doesn’t need to be transferred, nor do tax codes or reports. You can simply keep this in your old system as a backup. Xero provides its own customisable report packages, and comes complete with automatically-updated tax code information.

Converting your data

Converting your data from Reckon to Xero typically takes 2-3 weeks for a business with 10 or fewer employees. For businesses with less complicated affairs, this process can be reduced further. Business with complex affairs, and more than 10 employees, can expect 3 or more weeks.

Timing your conversion is crucial, and you want to ensure it’s done during a quiet business period, to allow for proper staff training in the new system.

Your Liston Newton Advisory Xero specialist will assist you throughout the process. They will work with you to ensure your conversion is completed as efficiently as possible, and all your data remains accurate and intact.

You’ll receive regular updates on the process of your conversion, and you and your employees will also be invited to a number of customised training sessions to ensure you understand how to use this new system.

Training your teams in Xero

Training your teams in Xero

While Xero has been developed to be as intuitive and user-friendly as possible, it’s always best to fully understand any new system your business deploys, and Xero is no exception.

One big area we see business owners looking for training in is processing your payroll.

Xero enables you to automate your payroll processing, including leave and leave accruals, so you don’t leave anything to chance. Xero has made payroll processing easy, with a handy smart device app. Your employees simply enter their leave details into the app, and this information is transferred automatically to payroll in your Xero system. No manual entering—your pay cycle each week will become a breeze.

If you’re after further training in Xero at your own pace, you can sign up to Xero’s adviser certification function. This provides you with training modules in all areas of Xero, that you and your staff can undertake at a time that suits you. You can find a complete list of training modules here.

Frequently asked questions

How long will my conversion take?

Typically 2-3 weeks from start to finish.

What price range can I expect for converting my system to Xero?

Small businesses with turnover of $100,000 to $1 million can expect to pay between $3,000 and $8,000, depending on the complexity of your needs.

Larger businesses with revenue in excess of $10 million will need to contact a Liston Newton Advisory Xero specialist for a more in-depth examination of your needs

Is there any time of the year you recommend for conversion?

We typically advise converting your system to Xero at the end of the financial year. This ensures a fresh start for the new financial year going forward. If this isn’t feasible, you can also opt for the end of the quarter, or month, to ensure the cleanliness of your data.

What are some common mistakes people when transferring their data themselves?

The biggest mistake we see is when people transfer their data themselves is that they over- or understate items within their accounts. If your figures don’t accurately correspond to what you’ve earned or spent, this leads huge ramifications down the line from a tax perspective.

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