Pre-conversion checklist: Xero USA

We expect that you have already covered the general pre-conversion steps and you can simply go ahead with the remaining ones on this list. This article outlines the specific pre-conversion steps for Xero.

Click here for the general pre-conversion checklist.

Step 1 - Do your taxes report for the remaining quarter (Mandatory)

If you use Cash-based accounting, we advise you to migrate directly after the close and reconciliation of a tax period. Otherwise, the post-conversion work in QuickBooks Online can be a lot of work (considering partially paid invoices).

We need to do your first tax report based on the old data in Xero. Suppose we are converting on April 14, and we need to post our tax report every quarter to the tax agency. This means we are converting in the middle of a tax period. You need to do a tax report for the period April 1 until April 14 in Xero.

After the conversion, we will use this information to make a full report. We do this by adding the amounts in the boxes together (from Xero and QuickBooks Online files).

You can read more about our VAT process here.

Step 2 - Extract post-conversion check data (Mandatory)

After the conversion is done you need to be able to check the results. Therefore, we need to extract the following reports from your system:

  1. Profit and loss for the period ending at conversion date
  2. Balance Sheet as of conversion date
  3. Trial balance for the period ending at conversion date
  4. Bank Account balances as of conversion date
  5. A list of outstanding invoices of your customers and suppliers as per conversion date

For your guidance, reports to check and compare include but are not limited to the following: 

QuickBooks OnlineXero 
Balance SheetBalance Sheet
Profit and LossIncome Statement (Profit and Loss)
Trial Balance Trial Balance
Accounts Receivable Aging SummaryAged Receivables Summary
Accounts Payable Aging SummaryAged Payables Summary

Step 3 - Extract data for auditing purposes (Mandatory)

When switching between different accounting systems, not all data is always converted to the new system. Hence, it is essential that you extract data from Xero for tax or for any other auditing purposes and keep it in a safe location.

Export the following reports for all accounting periods:

  • Sales Tax report
  • Account Transactions
  • Trial Balance
  • Other reports that you deemed necessary

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