When doing a conversion, it is most likely that you will not be converting all dates that are in the original company file.
Suppose you started using your previous software in 2012. Dataswitcher will only convert the last two financial years (2018 and 2019). The transactions from 2012 to 2017 will be consolidated into an automatically calculated opening balance.
This is an example of an opening balance journal entry generated by Dataswitcher:
From the journal you can see that the tool only post the balances of the balance sheet accounts. The Profit and Loss balances of the previous years are consolidated in the retained earnings.
The tool consolidates all open invoices at that date of every customer and supplier and posts them as a consolidated entry. If there are payments coming in related to those invoices, Dataswitcher will try to link them to the beginning balance journal entry for that Customer or Supplier.
The result of this journal entry is sent to the "Retained earnings" nominal code in Quickbooks Online.
Departments and Projects
Tracking classes in Xero will become Locations in Quickbooks Online.
VAT is converted, as a line level item
Dataswitcher brings across VAT from the source system as a line item (there is no VAT classification in Quickbooks Online). This results in a higher quality conversion that closes financially. However you will need to complete some post-conversion steps for the first VAT report. This is a one time step and also serves as a check that the data has migrated correctly.
When you are converting from Xero, multi currency is not supported. All data is converted in your home currency of the company.
Matching of Journal Entries
Dataswitcher cannot match related credits to their respective journal entries. The journal entries will still be posted but they will remain "un-linked". This mostly happens when you are taking payments on account for suppliers. You will have to match these entries manually after the conversion.
Cash VAT Accounting
If your company uses Cash VAT accounting rather than the Standard VAT accounting scheme, there are some additional post- conversion steps.
You will need to manually change your open invoices after the conversion to include VAT. Also please make sure that you follow the pre-conversion checklist before converting. The reconciliation of the bank is important for Cash VAT accounting as this affects the partial VAT report you do in Xero.