Accordingly, there are many reasons a company or its bookkeeper or tax preparer/accountant may want to convert a set of accounting books from the Xero platform to the QuickBooks Online (QBO) platform. When converting a company file from Xero to QuickBooks Online, the first thing to decide is whether the historical transactions will be part of the new file and if so, how far back to go with them. It is certainly convenient to have historical transactions in the file in case a question comes up, rather than having to search an archived record, scanned documents, or worse, paper records. However, including them also increases the cost and effort required to achieve the conversion. How much additional work and cost depends on many factors like the number and variety of transactions, number of accounts with cash transactions, tracking of inventory, payroll, and so on. Only someone with experience in converting the kinds of transactions in a company file can advise about these issues.
Unless the conversion is being done at the beginning of the fiscal year, there will undoubtedly be some transactions to convert from the Xero file to QBO. Before converting, save a copy of the balance sheet and income statement reports (Xero’s and most of the accounting world’s name for the profit and loss report) for all dates, using both cash and accrual methods and also the detailed Accounts Receivable and Accounts Payable reports. These will be used to verify the conversion after completion. Also, it is a good idea to lock the Xero file for dates before the conversion date so that no one makes changes after you begin.
The first step in the conversion process is to get the chart of accounts (COA) set up in QBO to match the one in Xero. Some will find it easier to create accounts in QBO to match those in Xero, but there is an easier way.
Next, the customers and vendors must be imported. This can be a lot of work when converting from Xero. This is because there is no distinction between customers and vendors in Xero. They are all grouped together as contacts and can be both a customer and vendor simultaneously. For this reason, it is recommended it should export them all as one and then separating them into vendor and customer lists yourself. They can be on both lists for importing, but the name will have to be altered in the list imported second or import will fail.
Next is importing products and services. This should be done, whether or not inventory is being tracked, if any items are listed on the “Inventory” page in Xero. Just like in QBO, items can be and are used in various types of transactions like invoices and bills and must be in place before they are imported. Like customers and vendors, the export file from Xero will need a lot of manipulation to match the format for import into QBO and that format can be found using the same steps as outlined above.
Once that is complete, the transactions can be imported to QBO. Up to 500 invoices or bills can be exported at a time. If there are more than 500 of either in the file, then I suggest splitting them up by date. These transactions cannot be imported directly into QBO, except with the use of a third-party program.
If there are payroll transactions in the file, then it depends on the provider and how the transactions are posted to decide how to handle them. For many providers, one simple way is to import them as bills due to each employee (create a vendor with the employee’s name). This allows allocation to all the appropriate expense and liability accounts. They can then be paid as the bank transactions are imported.
Finally, the bank transactions can be imported. However, this step is also the hardest. This is because, like many accounting programs, there is no way that I have found to export transactions with information on both the credit and debit sides listed together. Reports can be generated of all transactions in a bank account or all transactions in a target account, but neither report can be configured to include the other side of the ledger.
We convert your Xero Online data file to Quickbooks with engineering precision.
What is Converted?
The following is a summary of lists and transaction types converted from Xero Online to Quickbooks:
- Chart of Accounts
- Customer list
- Vendor List
- Jobs List
- Employee List
- Service Items
- Inventory Items
- Non-Inventory Items
- Assembly Builds Items
- Customer Payments
- Credit Memo
- Sales Receipts
- Vendor Credits
- Vendor Payments
- Journal Entries
- Item Receipts
- Inventory Adjustments
- Liability Adjustments
- Paychecks (as Journal Entries)
- Payroll Liability Checks
- Sales Tax Payments
- Sales Orders
- Purchase Orders
To proceed with this service, click https://e-tech.ca/Xero-to-Quickbooks.aspx