Step by Step Guide to Xero Conversion Xero online accounting software is preferred by many small businesses due to its ease of operation. It makes bookkeeping simple and hassle-free. Xero’s user interface is extremely easy to navigate and especially helps small companies that do not have the luxury of maintaining high-end accounting software or a huge team. If you want to convert to Xero, it is necessary to set up your organization in Xero. Open an account, choose a date for recording transactions and add a bank account to categorise your transactions. Let’s now take a look at a step by step guide to Xero conversion. Transfer Data to Xero In order to start the conversion, you need to get data from your previous system to Xero. CSV files can be used to import bulk data. With these files you can import chart of accounts file, invoices, bills, contacts and fixed assets. In order to avoid duplicate data, the bills and invoices must be imported before adding contacts. When you transfer the data, the customers and suppliers will automatically become contacts in Xero. Now, export the contacts from Xero, fill missing information and import the CSV file. Historical Transactions To move your historical financial records, enter a conversion start date. Now you need to enter recent sales invoices or bills that haven’t been imported in bulk. Approve these documents before running the conversion to Xero. Also enter cash transactions directly into your bank account if there is no bill or invoice to support the sales or expenses. Payment Processing and Bank Account Reconciliation After receiving or making a payment on an invoice entered in Xero, go to the bill or invoice and enter the payment amount along with the bank account number. For transactions entered into Xero, import the transaction record from your bank account and reconcile your accounts. This will help you to match the proceedings in your bank account with the transactions recorded in Xero. Click OK to confirm the matches. View the transaction list on Xero and mark it as reconciled when you find the transaction processed through the bank account. Once you are familiar with Xero and do not wish to enter items into Xero before going through the bank account, first import the bank statement and then create cash transactions in Xero. But, if you prefer to use invoices or bills, enter them first into Xero to match the payments on your bank statement. How to Import Bank Statement to Xero?
To import a record of your bank statement to Xero, you need to create a CSV file. Download the transactions from online banking in a CSV format. Prepare the data for Xero conversion by adding relevant headings, deleting unnecessary data and entering data in the correct fields. When you start importing the file to Xero, go to the Accounting menu and select Bank Accounts. Choose the Bank Account that you want to import the file into and click Manage Account. Click on Import a Statement. Now click Browse and select your saved CSV file. Open it and click Import. If necessary, match the bank statement fields with columns in your import file. Now click Save to complete the process. With MMC Convert you can easily complete Xero conversion within a short period. We help to make accounting hassle-free and simple. Get in touch with us to convert data from any accounting platform to leading software like Xero, MYOB, QuickBooks, Sage, Netsuite etc.