If you're planning to move your business over to Xero, you probably have a lot of questions. The whole process may seem a little bit daunting, and you may be tempted to throw your hands in the air and give up before you've even begun.
But here's why making the change to Xero is worth the time and effort.
Xero is a cloud-based accounting platform that is different to traditional desktop software like MYOB, in that the paperwork is literally taken out of your hands to help you stay connected to your data and your accountants.
Not only are there no headed paper or postage costs, there is the ability to chase overdue debts and send statements at the click of a button – as well as move work-in-progress to the invoicing stage from your mobile or tablet at any time. The conversion will revolutionise your business.
That said, it's helpful to have a checklist for planning your business's move to Xero. Here's what you need to know to make your MYOB to Xero conversion as smooth and efficient as possible
Keen to learn more about cloud-based software and how it can fast-track your accounting? Get in touch with us, and we'll talk you through your options.
1. Decide when to make your Xero conversion
The end of the financial year is often seen as the best time to convert from MYOB to Xero, but you can make the switch anytime. The beauty of Xero is that it never rolls over, so once you've migrated everything over from MYOB, you'll have all your transactions from the start of trading in one place.
With Xero, there's no need to do a formal year-end ('roll up') journal to bring the profit and loss balance back to 0.00. Xero's reports are created in real-time, and your Profit and Loss report will run directly from a year-end date that you choose.
In other words, on any date your report is run, it will be from the start of the financial year.
2. Define what you want to achieve
The appeal of cloud-based accounting software is different for each business and you should identify what you're trying to achieve by changing to Xero in advance. Many accounting firms and bookkeeping practices try out new software but stick to old processes – which is fruitless.
Ask yourself (and your team, if applicable) what you want to achieve from converting from MYOB to Xero. Consider what in your current system needs improvement and, if you're a sole operator, how many tools you can handle on your own?
Work with your financial advisor or account partner to put together a collaborative plan for your Xero conversion. There are a few things, mainly due to differences in how MYOB works, that can create roadblocks. Here’s a full list.
3. Complete any outstanding business tasks
It may seem like a no-brainer, but try to complete any outstanding business tasks before starting your Xero conversion. Make sure all bank accounts have been reconciled and all open credits have been applied to their respective invoices or bills.
Do a bit of a clean-up of your data to ensure you have everything in order. If you have a large number of files to convert, you can use a conversion service to undertake the necessary activities.
There are numerous free conversion services. We recommend Jet Convert, which is a trusted technology partner of Xero and registered BAS Agent. Jet Convert has completed thousands of MYOB to Xero conversions, but you should keep in mind that for a basic conversion, only two years of historical data will come across.
4. Work with a conversion partner
You'll save a lot of time and effort if you collaborate with a dedicated financial advisory firm or trusted accountant on your switch from MYOB to Xero. At Liston Newton, we can guide you through the key steps involved in converting MYOB or Reckon client files to Xero.
There are no limits to how many files you can convert, however, getting them ready involves time, patience and expertise. Xero reserves the right to limit conversions at its own discretion, so it's essential to get every last detail right. Our team can help you manage user access, set up bank feeds, do your invoice branding and get your Xero account finalised for everyday use.
Even if you aren't interested in bringing your transactional history over, we can help you do a ‘naked’ conversion, which carries across your business's Chart of Accounts, contacts, items and payroll set-up from the beginning of the current financial year. This option does not provide history or balances and is mainly for MYOB files that are out of sync with accountant’s figures.
5. Complete a post-conversion checklist
If you've completed the above steps on your own, you'll need to check that each transaction in MYOB from the conversion date was successfully converted to Xero.
As a rule of thumb, If it's reconciled in MYOB, it should be reconciled in Xero. This includes all invoices, including all line details and all contacts or items. If you’ve used payroll, all payroll transactions should also be updated to the general ledger, and all employees should be set up for you, ready to go.
At Liston Newton, we can help minimise the disruption to your business or practice as you go about your Xero conversion. We can complete the whole conversion process for you as well as advise you on best practices for Xero and its advanced tools and features.