Switching to Xero: How to Migrate Without Losing Data
Switching to Xero offers flexibility, automation, and collaboration, but only if migration is done correctly. Transferring incomplete or inaccurate data can create reconciliation issues later. This guide provides a clear, step-by-step plan for moving to Xero safely, keeping all your financial history intact and ready for daily operations.
Step 1: Clean Up Your Existing Books
Before migrating, ensure your current system is up to date.
- Reconcile all bank and credit accounts.
- Close open invoices and bills.
- Fix duplicate transactions.
- Review and tidy your chart of accounts.
A clean starting point ensures smooth data transfer.
Step 2: Export Key Data from Your Current System
Most accounting software allows exporting:
- Chart of accounts
- Customer and vendor lists
- Open invoices and bills
- Trial balance and historical transactions
Export these as CSV or Excel files. Keep a secure backup for reference.
Step 3: Set Up Your Xero Organization
- Create your Xero company file and set fiscal year dates.
- Add users and permissions.
- Recreate your chart of accounts using Xero’s import template.
- Turn on multi-currency or tracking categories if needed.
This foundation mirrors your old structure while improving flexibility.
Step 4: Import Data into Xero
Xero’s conversion tools or partner services can import your data automatically.
- Import lists (contacts, items, accounts) first.
- Then bring in opening balances and outstanding invoices.
- Check reports after each stage to confirm accuracy.
For complex data, use a Xero-certified migration partner.
Step 5: Connect Bank Feeds and Integrations
Once balances are confirmed, link your live bank feeds and any apps (payroll, e-commerce, or CRM). Start fresh reconciliations from your migration date forward.
Step 6: Verify and Lock Historical Data
Run your Trial Balance, P&L, and Balance Sheet.
- Compare totals with your legacy system.
- Correct any discrepancies immediately.
- Lock the prior period once verified to preserve data integrity.
Step 7: Train Your Team
Provide short training on Xero navigation and workflows.
- Review invoicing, bill payments, and reconciliation steps.
- Ensure staff understand new automations or app integrations.
Proper training avoids rework and builds adoption quickly.
Common Migration Mistakes to Avoid
- Migrating unreconciled accounts.
- Ignoring differences in account structures.
- Skipping report verification after import.
- Forgetting to lock old periods.
Avoiding these errors keeps your data accurate and audit-ready.
The Outcome
Once complete, your new Xero setup provides real-time insights, mobile access, and simplified collaboration. Clean data ensures your books stay accurate from day one and every month after.
FAQs
How long does it take to migrate to Xero?
Usually one to three business days, depending on file size and data complexity.
Can I transfer my full history to Xero?
Yes. You can import up to several years of transactions using Xero’s data import tools or partner apps.
Should I migrate mid-year or at year-end?
Either works, but starting at a new fiscal period simplifies reconciliations.
Will I lose access to my old software?
Keep a backup or read-only license for compliance and recordkeeping.
