Welcome to the QB Community. Have you seen this resource by the good folks over at QBO Chat Converting from Xero to QuickBooks Online? This group regularly puts out stellar content, and while the piece is a couple years old, it will give you an idea of best practices.
I am not very familiar with Xero's software, but I assume there's a backup feature. Absolutely, back up your financial data. If they offer cloud storage, also do a local backup to your hard drive. This way, if there are any issues, you can start from scratch.
When you're ready, set aside a time when you can "safely" pause work with minimal impact, say the end of the quarter or fiscal year. This way, you'll be working with cleaner data.
Also, with any transfer, you'll want to compare your Balance Sheet and Profit and Loss Report to look for discrepancies.
This should get you going. Encouraging other folks in the community chime in!
Hello and welcome to the Community, @caz.
It would be my pleasure to help guide you through migrating your company data to QuickBooks. The biggest obstacle when moving from one product to another is transitioning the individual transaction data. With the use of CSV (comma separated value) files, importing the Chart of Accounts, Customer, Vendor, and Product/Service lists is quick and easy. However, external services like Xero cannot export transaction items (i.e. Invoices, Bills, Checks) in a format that QuickBooks can use.
Generally, the suggested method is to import the lists and record their opening balances for the current date to be used going forward. To ensure your success with this transition, I'll provide all the resources you'll need below. Keep in mind, while the process shares the same general methods and restrictions whether you're using QuickBooks Online or QuickBooks Desktop, the steps will be different.
Enter beginning balances - all accounts will have a $0 balance after importing, so these steps are necessary to apply their opening balances.
Record opening balance - once you've chosen a start date for your bookkeeping to move to QuickBooks, use this guide to apply those beginning balances.
With these resources, your transition from Xero to QuickBooks will become a story of success. Feel free to get in touch with me here should you need any additional assistance, I'll be happy to lend a hand. Thanks for coming to the Community and have a great day.
Hi Michael, thanks for the quick reply and all the resources. I will begin importing the lists.
Also, am I reading you correctly in that you recommended not importing historical transaction data from Xero, but importing transactions from the bank and then recoding each transaction?
It sounds like @MichaelDL is recommending Online Banking. While at first this sounds like a potential lift, once you've connected your accounts to QuickBooks, the feature will automatically begin generating entries for you.
There's a bit more on this in "How to Connect Bank Accounts and Use the Bank Feed in QuickBooks Online." Specifically, check out the section called "Adding transactions (not already in QuickBooks)." Depending on how much you plan to bring in, this may not take long at all.
Where are you at in terms of your fiscal year? Do you follow the standard tax calendar? The reason I ask, as I mentioned in my previous post, if you are able to make the switch right at the end of the year or quarter when you start "clean," I've heard you can potentially enter the previous account balances as journal entries (though you'd need help from an accountant to make sure everything stays compliant), as long as you hold onto the old data for your records.
Let's get you through this! Hopefully, this is a viable option. At the very least, the conversation will give you insights you can take with you onto whichever accounting platform you choose.