How to Move or Migrate from QuickBooks to Xero Accounting Software

We know that keeping track of your accounts can be tough, erratic, and extremely draining, much like juggling a bag of squirrels. But what if we told you there was a way to calm those squirrels down and simplify your life significantly in the accounting world?

Two names that frequently stand out in the exciting world of small business accounting are QuickBooks and Xero. Every platform has devoted users, a unique set of benefits, and a potent feature set. But which one will turn out to be the real champion of your company? In this titanic battle, we will walk you through the advantages and disadvantages of each competitor so you can decide which accounting superhero is most qualified to propel your company to new heights.

In this article, we will discuss converting QuickBooks to Xero, as it is an incredibly stylish platform for your accounting work.

About Xero

Small business accounting software for the cloud is called Xero. It allows you to link the program to a live bank feed and complete bookkeeping tasks like payroll and invoicing. Xero is ideal for businesses that use IFRS or UK GAAP since it supports accrual as well as cash-based accounting systems. A business snapshot is a report that looks like a dashboard and shows performance metrics to assist you in understanding the financial situation of your company.

Xero’s robust cloud computing capabilities and user-friendliness have given it the upper hand against QuickBooks, which has been a mainstay of the accounting industry for the past 20 years. Xero gives you internet access to your finances from any location. For entrepreneurs that are constantly on the go, this is very helpful. Xero has established itself as the program of choice for many business owners thanks to its capability to access and examine one’s accounts from any location on any internet-connected device.

Among the numerous reasons we suggest switching from QuickBooks to Xero is this one.

Features of Xero

• You are not restricted to a single computer because Xero is cloud-based, allowing you to access it anytime and from anywhere.
• You may use Xero accounting software on your smartphone, and it doesn’t require any kind of software installation or IT upkeep.
• Your invoices with Xero are not only tailored to your company’s requirements, but they’re also easy and quick to create, send, and track.
• Recurring bills can be created, saved, and sent automatically from Xero via email.
• Either email each invoice individually or send them all at once.
• The ability to make invoices “payment-enabled” is one of Xero’s strongest features. The customer can click and make an instant payment with any major debit or credit card once it is received. Xero may be integrated with Stripe, GoCardless, or other payment gateways.
• A customer may receive a multi-currency or GBP invoice. Xero automatically records any gain or loss on exchange if the transaction involves multiple currencies.
• You can make and send credit notes to your clients directly, just like you can with invoices.
• Additionally, you can email the customer account statement straight from Xero.
• Replicating your previous invoices, adjusting the amount or description as needed, and sending them will save you time.
• By giving your clients money, you may now get paid back.

About QuickBooks

QuickBooks provides a variety of accounting and finance solutions for small businesses, even though its bookkeeping software is its most well-known product. In 2024, QuickBooks stands as one of the most widely used accounting programs for small enterprises. Whether you need a better solution than your present software, wish to get away from manual bookkeeping, or your spreadsheets have become a multi-headed hydra, QuickBooks can be a decent option without breaking the bank.

Features of QuickBooks

• Invoicing
• Tracking of Bills and Expenses
• Tracking of Employee Time and Expenses
• Online Payments
• Payroll
• Your Financial statements are on your Fingertips
• Management of Inventory is straightforward
• Taxation is easy

Advantages of Importing QuickBooks into Xero

User-friendly Interface:

Users can easily navigate Xero and manage their accounts because of its contemporary, intuitive design. This ease of use can lower the learning curve and increase the fun factor of the accounting process—even for individuals without prior accounting experience. Conversely, some users may find it more difficult and less intuitive to utilize the QuickBooks interface.

Features of Automation:

Xero provides strong automation solutions, like spending management, bank reconciliation, and invoicing, that cut down on errors and save time. These technologies can streamline Your accounting procedures, freeing up more time for you to concentrate on expanding your company. While QuickBooks has automation options as well, many customers believe that Xero’s tools are more effective and intuitive.

Financial Data Accessible in real-time:

Xero gives you instant access to your financial data, enabling you to make well-informed company decisions. You may manage your money more effectively and take a more proactive approach to running your company by doing this. Xero Analytics Plus is a unique feature that makes Xero stand apart. You can know where you stand and make changes on the spot, whenever you want, from anywhere with Xero Analytics Plus’ predicted cash flow analysis and business snapshot.

Collaboration:

Real-time collaboration between you and your accountant or other team members is made possible by Xero’s cloud-based platform. This feature makes it easier to communicate and collaborate on your finances, which ensures that your financials are precise and submitted on time and spares you from the agonizing waiting game at the end of the month.

Integration with third Party Apps:

The seamless integration of Xero with an extensive array of third-party applications and services enables you to construct a customized environment that fulfills your unique company requirements. The app marketplace is excellent if you can’t find a function that meets your demands already.

Customer Service:

Xero is renowned for providing prompt, friendly customer service, which is important when you’re having accounting problems. While Xero’s support team is frequently praised by consumers, some QuickBooks users have had worse-than-ideal experiences with them.

Scalability:

Xero is made to expand with your company, so it’s simple to add new users, handle various business entities, and modify to meet your changing requirements.

An appealing substitute for QuickBooks is Xero, because of its intuitive design, strong automation capabilities, real-time financial data, easy-to-use collaboration features, and numerous connectors. If you’re thinking about moving to Xero, you can be confident that the Accounting prose team will be there for you every step of the way, offering advice and assistance to guarantee a seamless transfer and enable you to fully utilize your newfound accounting superpower.

Preparing and Uploading of Files

Before converting from QuickBooks to Xero, your data must be accurate and current.

Some frequent mistakes we observe are:

• Inaccurate balances could cause you to overstate or understate your costs and income.
• Payroll processing delays are caused by missing personnel payroll details.
• Reconciliation problems with bank accounts.

In the event that all of your information is correct, the following kinds of data are usually required for a Xero conversion:

• Chart of Accounts
• Bills and Invoices
• Arrangements
• Unchanged assets

QuickBooks offers an effective way to export these files to a CSV file. This data can be simply imported from a CSV file into the provided Xero templates, where you can then carry out the conversion.

Still, some data can be translated to Xero without any problems.

• Historical data beyond the four-year amendment period (however, as a backup, we do recommend preserving this data on your previous system).
• Xero creates customized reports since tax codes are already integrated into the software.

Way of Converting QuickBooks to Xero

It usually takes two to three weeks to finish this process for a small business with ten or fewer employees. A business with fewer complex affairs will experience a quicker conversion time, whereas larger businesses with more complex affairs will experience a longer conversion time.

We highly advise that, in light of this timeline, you plan your conversion at a period when business is slower. This enables appropriate training to be given, empowering your personnel to make the most of this new technology.

Likely, you are recalling the moment you spent looking over the top websites to convert Excel files to QuickBooks. The challenge may indeed be valid in a few instances, but not in Xero’s situation. First off, there is a free conversion service offered by Xero that makes it easy to transfer your data from QuickBooks to Xero.

The fact that cloud-based accounting is now an option is another reason in favor of such an accounting software switch. It’s simple to convert your QuickBooks data to Xero, regardless of whether you are using QuickBooks Online, the cloud-based accounting program. Xero is regarded as one of the possibilities for QuickBooks to Xero conversion.

Small to mid-sized enterprises are best suited for cloud-based software like Xero and QuickBooks Online. Therefore, huge organizations with more intricate needs can be unsure about which of these technologies would be best for them. Still, both programs provide ample customization options for a wide range of businesses, including startups, retail establishments, large and small e-commerce enterprises, etc.

Both Xero and QuickBooks have comparable feature sets when it comes to billing, payments, expenses, and inventories. Xero provides a very intuitive method of bookkeeping. The lowest learning curve, easy accounting, and time savings are the main reasons to switch from QuickBooks to Xero. The technology is highly user-friendly and intuitive. In its particular marketplace, Xero provides a sizable array of integration choices. The Business Performance Dashboard from Xero showcases your most crucial indicators and provides incredible customization options.

The conversion process is the next crucial element to take into account when you want to convert QuickBooks to Xero. There are a few different ways you can convert from QuickBooks to Xero. Numerous elements will influence the strategy you select.

Time taken in Conversion

In most situations, the conversion process from QuickBooks to Xero requires three hours. In other situations, the amount of data you have may require several working days to process.

Points to be Remember Before Converting QuickBooks to Xero

Take into account the following factors when converting your QuickBooks file to Xero. If you want to move data properly and adhere to best practices, moving your accounting data from QuickBooks to Xero can go smoothly. The following advice will help your QuickBooks to Xero conversion go smoothly:

• Assess Your Needs: Before beginning the move, assess your needs by looking at your current accounting system and determining your objectives. You can use this assessment to find the optimal migration strategy and to find out what extra services or customizations you might need.
• Data Cleaning: Examine your QuickBooks data and take care of any problems you find, like missing information, duplicate entries, and inaccurate transactions. A more precise and effective data transfer is ensured by cleaning your data before the move.
• Select the Appropriate Conversion Service: Choose the data conversion service that best fits your needs, timeframe, and budget by researching and contrasting options like MMC Convert and Jet Convert. Find a provider that provides the necessary amount of support and customization and supports both the accounting software you currently use and the software you want to use in the future.
• Migration of Plan: Create a thorough plan for the migration that includes a timeframe, responsibilities, milestones, and backup strategies. With the aid of this plan, you will be able to oversee the migration process, monitor development, and make sure all required activities are finished.
• Engage in Dialogue with Your Group: Tell the people on your team about the move and how it might affect their job. Assist them in becoming acquainted with Xero and its features by offering training and resources. To reduce interruption and guarantee a more seamless transition, clear communication and assistance are essential.
• Backup of Your QuickBooks Data: Make sure you have a safety net in case problems occur throughout the conversion process by backing up your QuickBooks data before beginning the move.
• Validate the imported Data: Check the imported data in Xero carefully to make sure it is accurate and complete after the migration. Examine elements such as the chart of accounts, information about the supplier and the client, bill and invoice balances, bank account transactions, tax rates, and financial reports.
• Run in Parallel: You might want to think about launching Xero and QuickBooks simultaneously for a brief while. This method guarantees the accuracy of your financial data in Xero by allowing you to compare the outcomes and spot any anomalies or problems.
• Post-migration Chores: After the migration, take care of any tasks that need to be done. These could include reconciling bank accounts, adjusting invoicing and payment procedures, resetting third-party connectors, and setting up bank feeds.
• Seek Guidance from an Expert: To make sure you are following best practices and utilizing all of Xero’s features, speak with your accountant or a Xero Certified Advisor. You can handle any possible problems and optimize your money management procedures with their assistance.
• Edition: Which QuickBooks edition is your US version? Is this version more recent than 2007?
• Currency: Do you have files in QuickBooks that only contain one currency? Verify that the QuickBooks multi-currency feature has never been enabled.
• Data: If QuickBooks contains this data, you will also require data for the prior fiscal year in addition to the current fiscal year.

How to Convert QuickBooks to Xero: Xero Conversion

There are several methods available to import your QuickBooks data into Xero, ranging from quite manual to highly automated. Because they have seen it all and can assist you avoid any frequent problems, working with a Xero adviser will undoubtedly make the process go more easily. Jet Convert is Xero’s chosen partner, and they are wonderful, but you may want to look around for a more suitable option. Still, there’s not much better than a free conversion from QuickBooks to Xero. Yes, indeed! Without charge! If you decide to switch, Xero will pay for the conversion of your current and historical data.

Before we explore further, let’s take a closer look at the Jet Convert procedure.

Step 1: Preparing of QuickBooks data for Conversion

It’s critical to prepare your data and obtain the following information before starting the migration process:

• Verify that your QuickBooks file is reconciled and up to date. Be aware of the current status of your accounts because any problems with your QuickBooks file will transfer across to Xero. Since Xero lacks that feature leaving an open balance will be something of a hassle to rectify after conversion, match payments to bills and invoices, apply credit notes, and clear away Deposited Funds. If you are not cautious, those older, legacy issues will accompany you into your new Xero account, therefore it is important to take the time to clean them up.
• If the file is configured for cash-basis reporting, update the accounting method to accrual-basis. Although you can change the reports to your preference when you’re done, starting with a cash basis is advised.
• Important financial reports that can be exported on an accrual basis are the Trial Balance, Profit & Loss, and Balance Sheet. This will enable you to compare the information at a given moment between your QuickBooks and Xero files. Although Xero offers cash-basis reporting by default, it uses an accrual basis. In addition to easing your mind throughout this shift, this secondary check will assist you in determining whether there were any problems with the data migration.
• Turn on account numbers and fill in any omitted account numbers to complete your Chart of Accounts. To avoid the migration failing, make sure you also remove any special characters like colons, semicolons, quote marks, or tildes. Additionally, because 699 accounts are the maximum number that Xero will allow you to have on your Chart of Accounts, you will need to merge accounts or remove inactive accounts.
• Combining several accounts payable and accounts receivable into one is a good idea if you have more than one of either type of account.

In the case of QuickBooks Desktop

Make sure that the QuickBooks Desktop edition you are using is compatible with it; this requires that the edition be 2014 or newer and that multi-currency has never been enabled.

Save the file for QuickBooks Desktop in the appropriate format. Save the file in QBXML, QBW, or QBB format. There can be no more than 1GB in your file.

To get rid of any dirt, you might wish to perform verify and rebuild before saving your file. You’ll need to supply the admin login and password during the conversion process, so make sure to save them as well.

In the case of QuickBooks Online

Prepare your QBO file to grant Jet Convert admin-level access.

Step 2: Linking QuickBooks and Creating an Xero Account

It’s time to switch to Xero once your data is prepared for use. These easy steps will help you set up your organization and create a Xero account.

Get a complimentary 30-day trial of Xero by visiting their website and registering with Accounting Prose.

To begin, simply input your first and last name, phone number, email address, and location.

Xero will email you a link to validate your account after you click “Next: Confirmation.“

To locate the link, check your email.

Press “Yes, This is me – Let’s Begin” to continue working.

Make a strong password to unlock your account. For safe password creation and storage, we recommend using a program like 1Password or Last Pass.

Subsequently, input the name of your company, choose your sector, and confirm if you have staff members. Notice the large red box that says, “Coming from QuickBooks“? Click that to start utilizing Jet Convert, Xero’s partner, to convert your file.

You will have the most control over how the data transfers from QuickBooks to Xero if you select this option, but it will take the longest. If, before converting to Xero, your file was a disorganized mess, this could be the best option for you.

Step 3: Xero Data Verification and Reconciliation

Ensuring the success of the conversion is vital because moving your financial data from QuickBooks Online (QBO) to Xero is a big task. By using this checklist, you can make sure that you’ve thought of everything before making the transfer.

• Evaluate and make Changes to the Settings: Make that the base currency, tax rates, user rights, start dates of the fiscal year, and other settings and parameters in your new accounting software match your company’s needs.
• Study Your Financial Reports: Do you still have the reports you previously downloaded? Now is the moment to make sure the figures match by comparing the two. Any differences could point to an issue with the conversion.
• Verify the Amount owed and Payable: Examine your bills and invoices that are still due. The entire amount in QBO and Xero for your accounts payable and receivable should line up.
• Modernize the way You Bill and Receive Payments: Make sure that the payment gateways, online payment connections, and invoice templates you use have been updated to function with your new accounting software.
• Validating Taxes: Verify your tax balances and settings to make sure they were moved correctly. The amount of sales tax owed in QBO and Xero should line up.
• Cross-Check Fixed Assets: Verify that the specifics and cumulative depreciation of every asset have been accurately imported if you keep a list of fixed assets.
• Check Contact Facts: Examine the information about your suppliers and customers to make sure that all of the facts (addresses, phone numbers, and terms) correspond to the information in QBO.
• Examine Classes: Xero’s tracking categories are: Verify that the details have moved correctly if you have been utilizing classes or locations in QBO.
• Update Your Accounting Procedures: Examine and amend your accounting protocols to bring them into compliance with the features and functionalities of the new program. This can involve making changes to your budgeting procedures, tracking expenses, and chart of accounts.
• Develop Your Group: Your team members should receive assistance and training so they can become acquainted with the new accounting software’s functionalities. Sharing any pertinent materials and paperwork falls under this category.

Additionally, it’s a good idea to have your financial advisor or accountant examine the migrated data and perform independent checks. Recall that verifying a successful conversion is essential to guarantee the accuracy of your financial data and the continuous functioning of your company.

Conclusion

Since Xero is designed to be intuitive and user-friendly, educating your workers to use this strong platform is simple. Your staff’s familiarity with financial systems and operations will determine the extent of training that is necessary.

Processing payroll is one crucial area where we observe that business owners need training. In case you are still manually inputting payroll data for your employees every pay period, you should switch to Xero right away. Payroll processing can be made more efficient with Xero, a system that is meant to be used by users of various skill levels.

In addition, Xero offers an online Xero adviser certification feature that allows employees to upskill at their speed. They merely register for the program and finish the numerous Xero training modules.

It may seem intimidating to switch platforms, but keep in mind that every step you take will get you closer to a more planned and effective financial future. With Xero’s cutting-edge and intuitive software, you can finally free up valuable time to concentrate on expanding your business by streamlining your daily accounting. For your new beginning, our experts are there if you face any issues while converting.

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