Quickbooks – File Preparation

Here is our recommendation of what to check before converting to Xero:

ESSENTIAL – QB Enterprise

  1. Please see here for versions converted and transaction types that may cause issues.
  2. Ensure that the file is set to the correct accounting basis (cash or accrual).
  3. For version 18 and earlier Quickbooks Enterprise files: Remove all  DOB’s and social security numbers from all employees in the file.
  4. Create a backup from the current file and upload (how to back-up from Quickbooks Desktop).
  5. To start the conversion go to the Upload page, upload the back-up, fill in your details including a Xero subscription email and we do the rest.

ESSENTIAL – QB Online (currently in Beta pilot)

  1. Ensure that the file is set to the correct accounting basis (cash or accrual).
  2. We use the latest version of Quickbooks which requires that all employees have date-of-birth and social security number information in the file, even though we do not convert payroll. Please check this is in place for all employees.
  3. Turn off bank feeds and do not work in your QBO entity during the process.
  4. Turn on account numbers for your Chart of Accounts.
  5. To start the conversion go to this page for instructions.

DO NOT!

  1. Do NOT change any account types in QBE/QBO prior to conversion.
  2. Do not start a Xero subscription prior to the conversion:
    • We set up an entirely new Xero org for you based on the file sent to us.
    • Conversion to a Xero 30 day free trial is not available with this service.
    • On most occasions Xero will not allow us to apply a promo code to the sponsored conversion.  Check with your Xero Account manager if you are wanting to do this.

OPTIONAL

  1. Verify multi-currency has never been turned on.
  2. Remove duplicate any account names or numbers from your Chart of Accounts.
  3. Run verify & rebuild on the file before submitting for conversion.
  4. Check that the balances in all reconciled bank accounts and credit cards actually reflect the bank statement balances as of the last reconciliation date. If possible, finalise all bank reconciliations to the end of the previous month. (NOTE: Reconciliation is easier in Xero, so if you do have unreconciled periods in your file this information can be converted, however, you need to make sure that the bank balances are correct as of your conversion start date.
  5. Ensure all clearing accounts (including Undeposited Funds and Electronic Clearing Account) are reconciled to NIL. Alternatively, please be familiar with why there is a balance in these accounts so these can be dealt with in Xero post conversion.
  6. Confirm that the Accounts Payable report reconciles to Supplier statements and that all unpaid invoices are still due.
  7. Ensure all credit notes are applied unless actually unused.
  8. Repeat points 3 AND 4 for Accounts Receivable as well.
  9. Ensure the Accounts Receivable / Accounts Payable balance match the figures in the General Ledger.
  10. Check if any Account numbers are longer than 10 digits. If so edit them to be unique numbers of 10 digits or less.
  11. Post Conversion please read the Action Checklist for the conversion specifics and the details of the next steps.
  12. Post Conversion please read the Action Checklist for the conversion specifics and the details of the next steps.

Transaction types that may lead to issues

Wherever possible we try to deliver the conversion with full transactional history as promised.  On occasions, if the following transaction types occur extensively we may only be able to provide a service with no or reduced history. In some instances it may prevent us from being able to complete the conversion at all.  If this occurs we will endeavor to advise you as soon as possible.

  • Manual journals to control accounts – Xero does not allow journals to control accounts. Where we encounter these transactions we use the conversion clearing account to replicate these journals in Xero.  However extensive use of journalling to control accounts is outside the scope of our automated service and we will advise if we encounter this in your file and the options available.
  • Tracked inventory – Xero does not manage tracked inventory the same way as QB does. We use monthly manual journals to balance these transactions out.  However if we encounter a large volume of complex tracked inventory transactions it falls outside the automated service.  We will advise if we encounter this in your file and the options available.
  • Multiple Accounts Receivable / Accounts Payable accounts – Xero only allows for one system Account for each Accounts Receivable / Accounts Payable. Where possible we will merge multiple Accounts Receivable / Payable accounts to conform with Xero’s functionality. However if there are many, or complex, AR / AP accounts in the Quickbooks file we will not be able to complete the conversion.