My time is better spent cleaning up data to be converted, and reviewing the output, rather than manually recreating a Xero file. For more information, check out Xero’s conversion services at www.xero.com/marketplace/app-function/s/conversions. Chatting to your Xero Adviser to find out what the current deals are is also worthwhile.
Preparing to Import Data from a Non-Accounting Program
If you’ve been in business a while but don’t have an existing computerised accounting system, the next few sections are for you. I discuss how you can utilise your paper- and/or spreadsheet-based records to assist in moving to Xero.
Converting paper-based records
If your existing records are paper-based — and I mean anything from a shoebox through to comprehensive documentation — gather the records and identify what needs to be entered into Xero. Use the last confirmed trial balance, which may be from the last time an accountant prepared financial records, as a basis for your chart of accounts (see the section ‘Confirming the switchover date’, later in this chapter, for more). It is like piecing together a jigsaw puzzle — once you start entering data into Xero, records should fall into place easily.
An alternative to entering data yourself is an extracting solution such as Dext, where scanned receipts are uploaded and analysed, and data is extracted and pushed into Xero. (Refer to Chapter 2 for more information on manually entering data into Xero, and see Chapter 16 for more on extracting solutions.)
Working with spreadsheets
If you maintain accounting records using spreadsheets, and are considering converting to Xero, the process you undertake is dependent on your spreadsheet layout. Assess what accounting information can be extracted from it. If the information is in a database format — for example, customers are listed in rows, with their details stretched out across columns — you may be able to easily manipulate data so it can be imported into Xero using templates available through Xero (see the sections ‘Downloading Xero templates’ and ‘Preparing data for import’, later in this chapter, for more information).
If, however, your spreadsheets have been maintained in a random fashion, transforming them to a suitable layout for importing data into Xero may be time-consuming.
It may be that you need to manually enter data, following the guidelines provided in Chapter 2. Alternatively, you may be able to adopt a hybrid approach, importing some data and manually entering the remaining data.
Getting Ready to Convert from an Accounting Program
At Christmas, our extended family gather to celebrate the festive season, and one of the highlights is the Ray Cresswell jigsaw marathon. The first jigsaw puzzle comes out on Christmas Eve — this is a 200-piece puzzle with large pieces, which suits the beginners and the kids. The family gathers, the kids get involved, pieces of the puzzle are turned over, the corners are found, the border is formed, scenes are created, and the puzzle is completed. The next puzzle commences on Christmas Day (in that space after the presents have been opened and the bucks fizz drunk, and before Christmas dinner is served). This puzzle has a few more pieces, and these pieces are a bit smaller, but our approach is exactly the same. This scene repeats over the next few days, until the biggest, toughest and meanest puzzle, with 2,000 teeny-tiny pieces, is unboxed. We gather, eager and well-prepared for the marathon challenge. Applying our well-practised approach, we tackle and conquer the puzzle. Success is ours!
Essentially, all accounting systems are the same as jigsaw puzzles — you just need to work out where all the pieces are supposed to go. Accounting systems are simply databases, or lists (or pieces) of data in different tables. To convert between solutions, you just need to export the data lists from the original system, review the format of the data, and import the data into the new system — in this case, Xero. With a systematic approach, you can work through each stage of the process.
The first part of the conversion is setting up your file framework for the imported data. Once you’ve done this, the conversion process moves through the following stages, regardless of the system you’re converting from:
Export data: Export available data from your previous accounting system and save it to your computer (see the section ‘Setting up file directories’, later in this chapter, for information on how to set up your files).
Prepare data for importing: Use the conversion as an opportunity to tidy up your data lists and trim dead wood. Delete unused accounts and contacts that are no longer around. If historical data is imported, associated records, such as contacts, can’t be edited or deleted — otherwise, the records won’t match. Save updated files in CSV text file format (see the section ‘Understanding the CSV file format’, later in this chapter, for more).
Import/update data into Xero: The Xero file needs to be created before data can be imported into it. Work through Chapter 2 before embarking on this section. Because some of the data you need to import is reliant on or linked to other data, you should also import/update data in the following order:Tax Rates (review and manually update existing rates if necessary — the tax rates cannot be imported)Chart of AccountsContactsInventory ItemsSales InvoicesPurchases BillsBank TransactionsManual JournalsFixed Assets
Review and manually clean up imported data where necessary: If erroneous data is imported in error, select it to be archived. (And then review the process to identify what went wrong.)
Repeat until finished.
Table 3-1 provides a conversion checklist, and includes example file names for exported and imported data.
TABLE 3-1 Conversion Checklist — Summary
| Data | Export ✓ |
File Name
|
|---|
