DEAR Manage Opening Balances Conversions : DEAR Support Team

You can set up Xero conversion balances just with the bank balances (so at least you can rely on that). Start your accounts on the 1st January for example and once your accountant has closed the year-end, you can then go back and enter the opening balances. When you want to move to Xero, there are multiple factors to consider. It all begins with planning the process of migration through customizing Xero and training the team.

You will need to then manually re-input any opening balance tasks. Next, you have to ascertain the information you want to transfer from an old system to Xero. This would boil down to factors such as what the company wants, how they want to monitor the results if they want to compare to previous results and other related factors. If you are a new company and this is your first year doing your finances, you can start any time. Usually the sooner the better – to make sure you are on top of your finances.

Things to keep in mind if someone is setting it up for you

In this case, you will need to enter the bank statement value and include the transaction that has not gone through yet elsewhere. Undoubtedly, moving your client to Xero requires some planning. If you follow the aforementioned steps, you would be able to successfully ensure that the Xero set up meets the needs of your clients and they can use it immediately. It requires adequate preparation to make sure that the program works efficiently and the resources, as well as time conversion, is perfect. Opening balance tasks, sales/purchases, and manual journals can be voided in order to edit the date.

The company believes in training clients to use Xero, discuss the business with them, analyze trends, and provide solutions. This allows them to train the client team to understand the new Xero infrastructure better and eases use. Bank feeds are crucial to import bank transaction details into Xero.

An Important Xero Migration Checklist

Before beginning, it is crucial to speak to the client, or the business, and discuss their expectations from the new accounting system. This is an important step to understand the operations of Xero. It would allow the team to plan their needs, set up essentials, and apps https://bookkeeping-reviews.com/ they could choose. It will give you all the historical outstanding invoices, potentially historical Profit & Loss for reporting comparison purposes and a lot more. It’s definitely slower and comes at a price, but you need to decide what is more important for you.

The cost of installing and bringing the historical data correctly is very meager as compared to its use in the long term. You must use an experienced accountant or conversion specialist to assist in the transition process and make it as smooth as possible. Xero provides two different types of bank feeds to clients – Direct and Indirect. While Direct Feeds require users to enter into an agreement with Xero, Indirect Feeds do not require agreements.

Moving to Xero

The reason why, is because at the end of your financial year-end your accounts have been fully closed and all your year-end figures are (hopefully) spot on. It will give you a lot of headaches if you set it up and the figures are actually wrong. So make sure you tidy up your accounts and finalize them before moving. However, if you’re using Xero from scratch – checkout out Part 2A – Setting up from Scratch. For a seamless conversion, make sure you use a Xero certified advisor.

• To change stock figures after the initial setup, use Stock Adjustment or Stocktake.
• If previous results were required, then it would be necessary to transfer all historic data into the new Xero process.
• The Activity Log displays a lists of all actions taken in the Opening Balances section, with time/date stamps and user identification.
• If you are currently using Xero or QuickBooks Online which you will be integrating with DEAR, then you will need to enter balances from the Xero/QBO system.

This is usually because things weren’t accrued for or depreciation wasn’t done, and so on. So unless you have no other choice, go for it, but this shouldn’t be your #1 choice. If there is an amount in the opening balances for fixed assets (e.g. Office Equipment for $1000), a fixed asset or a list of fixed assets adding up to this value must be added to this tab. The value of your fixed assets should match the fixed assets account debit that has just been entered on the Opening Balances tab. Before clients consider Xero migration, it is your role to explain the benefits of direct and indirect bank feeds. Understand their requirements and expectations and deliver customized services.

Inventory Management

The reports can be generated prior to the conversion balance as well. Is a fresh, modern, and dynamic B2B accounting firm, specializing in eCommerce and SaaS businesses. The Activity Log displays a lists of all actions taken in the Opening Balances section, with time/date stamps and user identification. See more about importing your starting Inventory List and Stock on Hand in the Getting Started Guide. Xero migration is an exciting endeavour that brings in much more collaboration and transparency into the business.

Once opening balance data has been entered, it is no longer possible to change the opening balance date. Once historic data is converted, it may be used to prepare KPI reports as well as analyze trends that are automated https://bookkeeping-reviews.com/entering-conversion-balances-in-xero/ through apps like Spotlight or Futrli. So here’s how to go about converting to Xero from your previous accounting system. The total amount the balance is out by is displayed at the bottom of the screen.

However, if you want to see more detailed information, it doesn’t compare to manual entry. This operation should only be performed when initially setting up DEAR Inventory – it should not be used to update stock balances if you already have stock figures in the system. DEAR Inventory uses actual accounting costing methods, and uploading the stock-on-hand template multiple times will create new instances of the products rather than update existing quantities. To change stock figures after the initial setup, use Stock Adjustment or Stocktake. Accounts Receivable as of the 30th of September 2016 are all the sale invoices that are still outstanding on that date. Accounts Payable are all the purchase invoices still outstanding on that date.

• This is usually because things weren’t accrued for or depreciation wasn’t done, and so on.
• If there is an amount in the opening balances for fixed assets (e.g. Office Equipment for $1000), a fixed asset or a list of fixed assets adding up to this value must be added to this tab.
• Having said that, there’s another important step often overlooked when planning Xero migration.
• If your bank balance when moving to Xero was 10,000, if you don’t set up Xero conversion balances correctly, going forward your bank balance will start from 0.
• So here’s how to go about converting to Xero from your previous accounting system.
• If you follow the aforementioned steps, you would be able to successfully ensure that the Xero set up meets the needs of your clients and they can use it immediately.