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When is the best time to move to Xero?
28 March 2023

April sees the start of a new financial year for many of our clients, so we thought we would focus this month all about getting yourselves up and running on Xero accounting software.

The best time to move to Xero would depend on your business needs and financial situation but here are some of our tips:

1. Setting up Xero at the beginning of a new financial year will keep your records accurate from the start and avoids any disruption to your financial records. This makes it a smoother transaction as you can close down your old system and start fresh with Xero ensuring a clean break and accurate data.

2.  If you’re already in the middle of a financial year, it might be a good idea to set up Xero at the start of a quarter (it is important to tie this in with your quarterly VAT dates) as this can make it easier to manage your financial reporting. With a clear start date you can generate reports that cover a complete 3-month period and this will help you transition smoothly and ensure all your financial data is accurate and up to date.

3.  If you are setting Xero up yourself, we would suggest waiting until you have the time to commit. You don’t want to rush the process and make mistakes. This way you can take your time to set up your accounts correctly and learn how to use the software effectively.

4.  When setting up Xero for the first time, you’ll need to reconcile your accounts to ensure that your financial data is accurate. Waiting until the start of the financial year or beginning of a quarter gives you the perfect break in your financial data, making it easier to reconcile your accounts and ensure that your data is correct.

At Your Support Team, we find it much more straightforward to start with a clean slate and simply enter conversion balances for the prior financial year. It’s the ideal time to clean up your data that is both free from errors and is up to date and complete.

This all being said, you don’t have to wait, you can start or move onto Xero at any time providing you have an opening view of your outstanding sales and purchases and your bank balances. When starting with Xero or moving from one system to another, a little planning goes a long way and will make the transition much easier. It will give you the opportunity to think about what you need from your new accounting system….it might not be what you have now! You might want to include the following:

– Your own cost and sales categories
– Stock lines and inventory tracking
– Expenses tracking
– Project management

We have seen the difference that Xero can make to a small business and we’re confident that Xero would soon become as important to your business as it is ours, streamlining your financial processes and helping you maximise your resources.

We have successfully recommended and set up hundreds of small businesses on to Xero and as a trusted gold partner, we have all the knowledge and expertise to be able et you up on this user-friendly accounting platform and although we don’t work with any other accounting software, we are happy to help you transition. We can tailor it to your exact needs and with the information from your data we can help you to run your business better.

Why not speak to us about how we think Xero will be beneficial to your business. We’ll be happy to share our knowledge with you or train you on how to make the most of its applications and time-saving tools. Keep an eye on social media for more tips and information about Xero and if there is anything you would like to know or that others may find beneficial, please let us know.