Thinking about switching to Xero? You’re not alone. Many businesses are moving their accounts to the cloud to save time, reduce manual work, and stay on top of their numbers. But before you jump in, you need a solid plan.
This guide will walk you through the key steps to prepare for Xero migration, help you avoid common mistakes, and make sure your team is ready.
Let’s break it down step by step.
Why Proper Planning Matters for Xero Migration
Changing accounting systems isn’t something you do often. That’s why it’s important to get it right the first time.
Many businesses assume the Xero migration process is just about uploading data. In reality, it involves planning, cleaning your accounts, setting the right timeline, and making sure your team knows what’s coming.
If you rush the process, you risk bringing in bad data, confusing your staff, or losing key financial info.
Step-by-Step: How to Prepare for Xero Migration
1. Understand What Xero Migration Involves
Here’s a basic rundown of the Xero migration process:
• Review your current accounting system
• Decide which data to move (contacts, invoices, chart of accounts, etc.)
• Clean up your data
• Choose a migration date
• Export and import data
• Reconcile records in Xero
• Begin using Xero for daily accounting
This process may seem simple on the surface, but the quality of your prep determines how smooth it actually goes.
2. Evaluate Your Migration Readiness
Ask yourself:
• Are all your financial records up to date?
• Do you know what data you want to bring into Xero?
• Who will manage the migration?
• When is the best time to switch systems?
Checking your migration readiness early on helps you spot problems before they slow you down.
3. Involve the Right People
A successful switch isn’t just about software. It’s about people too. Your bookkeeper, accountant, and finance staff all need to be part of the plan.
Explain:
• What changes are happening
• When the changes take place
• What support or training they’ll receive
When your team knows what to expect, the Xero migration will go a lot smoother.
4. Prepare an Accounting Migration Checklist
Key things to include:
• Export your existing data
• Reconcile bank accounts
• Clean up unpaid invoices
• Remove duplicate contacts
• Lock your old data after migration
• Back everything up
Having a full accounting migration checklist ensures nothing gets missed during the switch.
5. Clean Up Your Data Before Migration
Now’s the perfect time to tidy things up:
• Archive old or inactive clients and suppliers
• Fix errors in names or addresses
• Match outstanding invoices to payments
• Remove zero-balance transactions
A clean database means fewer problems after the move.
6. Choose the Right Date for Migration
Timing is everything. The best time to switch is when business activity is low, such as the end of a month or quarter.
Avoid doing your business data migration during tax season or when staff are away. This gives you more control and space to fix anything that pops up.
7. Test Xero Before You Go Live
Before you go fully live with Xero, run a test import of your data.
Check:
• Invoices and bills are showing correctly
• Customer and supplier details match
• Chart of accounts is structured the right way
• Bank balances are accurate
Testing helps you catch problems early and gives your team a chance to practice before going live.
8. Communicate With Stakeholders
If you have business partners, investors, or anyone else who relies on your financials, let them know about the change.
Explain why you’re making the move and how long the switch will take. This builds trust and shows you’re managing the process well.
9. Get Help From a Xero Expert If Needed
If you’re not confident doing this alone, you’re not stuck. You can:
• Hire a Xero-certified advisor
• Use a Xero migration service
• Ask your accountant for support
Sometimes a bit of expert help can save you time and reduce the risk of error.
10. Prepare Your Team for the Transition
Training is key. Even if your team is used to working with other tools, Xero will feel new at first.
Plan for:
• A walkthrough of the Xero dashboard
• Basic training on raising invoices and reconciling accounts
• A few days of support after going live
When your staff are confident, the whole Xero migration planning process becomes easier.
11. Monitor and Adjust After Migration
Once you’re live on Xero, the work doesn’t end there. Monitor the first few weeks closely.
• Are reports pulling correctly?
• Are there missing transactions?
• Is everything reconciling as expected?
Keep a list of small issues and fix them early. It helps your business stay stable after the switch.
Final Thoughts: Make Your Xero Migration a Success
Switching to Xero is a smart move for many businesses—but only if it’s done right. If you prepare well, clean your data, involve your team, and follow a checklist, your Xero migration can be simple and stress-free.
Use this guide to plan your move with confidence. And remember: migration isn’t just about data—it’s about giving your business better tools to grow. Contact Switch My Books today for a smooth Xero transition.
Frequently Asked Questions (FAQs)
1. What data gets transferred during Xero migration?
Typically, you can migrate contacts, invoices, bills, chart of accounts, bank transactions, and opening balances. You can choose to bring over everything or just the basics, depending on your needs.
2. How long does a Xero migration take?
It depends on how complex your accounts are. A small business might be done in a few days. Larger businesses with years of data may take a couple of weeks.
3. Can I use Xero during the migration?
It’s best to pause transactions during the actual migration phase. Once the process is complete and verified, you can continue using Xero for daily operations.
4. Is it better to migrate at year-end?
Many businesses prefer migrating at the end of the financial year or quarter. It makes reporting and reconciliation easier, but you can migrate anytime with the right planning.
5. Do I need an Xero-certified advisor to migrate?
Not always, but working with a certified advisor ensures your Xero migration is accurate and complete. It’s especially useful for complex businesses or if you’re short on time.
