Mar 13, 2020 Author: Accounts Junction
CONVERTING TO XERO
Want To Convert To Xero?
Xero is a cloud based accounting software specially designed to cater the needs of small businesses. Xero provides a variety of features that includes tracking and payment of invoices, bank feeds reconciliation, tracks and manages inventory, payroll management etc, . All the business management can be done more efficiently with its mobile application that is available for both android and iOS.
What Is a Good Time To Convert To Xero?
If you are attracted towards Xero and is thinking of switching from your current accounting software, you should not waste even a moment because you won’t regret your decision. But, your business work might disturb you from doing so. The best time to convert to Xero or any other accounting software is at the starting of your business year whether you are working according to calender year or financial year. In this way, all your books of accounting will be fresh and you only need to transfer the balance amount of the accounts and complete some limited casualties like adding bank details etc.
Features Xero Can Offer
Xero has wide range of features to offer to its clients. These features will help you manage over all aspects of your business. Xero ‘s features along with the the addons (extended softwares) makes it easy to run a business. Lets have a look on all the features Xero provides:
1) Invoicing: Xero lets you create customized invoices. You can also add reminders for recurring invoices and can also see whether they are paid or not. For faster payments, you can add ‘pay now’ options, so that your receivers can pay you hassle free.
2) Inventory Management: Xero, with the help of its add-ons, keeps an eye over your inventory. Xero maintains all the details, like stock level, its current prices, so you can easily track what and how much you need to purchase.
3) Dashboard Preparations: Xero creates attractive and easy to understand dashboards that tracks your cash flow of the period. You can also compare the reports with previous years. The dashboard of Xero also contains all your bank details at one place.
4) Multi-Currency: Xero makes payments and receiving easy with its multi-currency option. It keeps the exchange rate updated on regular basis. Xero also lets you set preferences for specific clients who are frequent in the business.
5) Bank Reconciliation: Xero automatically reconciles all your transactions every single day, so that you don’t miss anything. This software is also connected to numerous banks, that makes it easy to connect if your bank is one of them.
What Will Be The Benefits Of The Conversion?
Converting from your current software to Xero will help you with your business in many ways that will show the results in the short run. Xero automates various tasks that help save time and increases efficiency. From automated tasks to bank reconciliation, from tracking and sending invoices to receiving fast and secure payment, Xero never runs out of reasons as to why should you go for it.
Steps To Convert To Xero
Switching to Xero will prove to be the best decision you have taken for the welfare of the business. With enormous features, Xero stands high as an accounting software. Even the set-up and conversion is an easy process. You can follow the given steps in order to convert to Xero:
1) Export Data On Customer And Vendors And Import In Xero: The very first step in the conversion is to import all the data from your previous software to Xero. It is not possible to import all the data at once. You have to do it one-by-one. You should prioritize the data you want to import first. Like, you can import bank statement, inventory details, invoices, reports first.
2) Invite Users To Xero: The access privilege can be given only if the employees and the accountant uses the software. Those personnels who need to get access to all these accounting data must be given invitation and the information about this software switching to Xero.
3) Start Using Bank Feeds: You can import your bank feed and immediately can start using the software because transactions of healthy business does not stops abruptly.
4) Decide If You Want To Use Class Tracking?: Class tracking in Xero keeps all the details that you need to run your business like inventory, cashflow, profit & loss and presents them in a form of reports. You need to decide whether you want to use the function of class tracking or not.
5) Research If Any Xero Add On Required For Below: Xero provides many extended features with the help of add-ons. These add-ons are specially designed to carry out specific functions.
a. Inventory: For inventory management, some add-ons like Vend, simPRO are available.
b. Reporting: For reporting purposes, Xero have Futrli, Fathom. These two are major add-ons that carry high rating amongst the clients.
c. Revenue recording: Receipt Bank, Hubdoc, AutoEntry is considered as major add-ons for revenue recording purposes.
You just need to identify whether you need to use these add-ons or not. This decision should be mainly based on the size of the business. If the business is small scale, you will be fine with Xero. Add-ons will possibly not be required.
6) Enter All The Conversion Balances Till Date: All the account balances from the previous year have to be entered manually.
7) Reconcile All The Data Till Data: Reconciliation will help comply all the data with each other, eliminating the possibilities of errors and omissions. This step also eliminate confusion regarding whether all the bank transactions or the balances are imported completely or not.
