How to convert Quickbooks to Xero?
Nightmare! Is that the word that comes to your mind when you think of converting one accounting software to another? You are probably remembering the time you were trying to find out the best websites for Excel to Quickbooks conversion. The difficulty actually may hold true in several cases but not in case of Xero. First up, Xero has a free conversion service that moves your data from Quickbooks to Xero without much hassle.
Another factor in favour of such accounting software conversion is the option of cloud-based accounting available today. Whether or not you were using Quickbooks Online – the cloud version of Quickbooks accounting, you can easily convert your Quickbooks data to Xero. Xero is considered one of the options to convert Quickbooks to Xero.
What exactly prompts any business to convert from Quickbooks to Xero? Both Xero and Quickbooks Online are cloud-based and most suitable for small to mid-size businesses. So large organizations with more complex needs may wonder if any of these software is good for them or not. However, both the software offer enough customizations for all kinds of businesses, be it retail stores, startups, big or small e-commerce companies etc.
When it comes to invoicing, payments, expenses and bills inventory, both Xero and Quickbooks have similar feature sets. However, Xero offers an extremely user-friendly approach to bookkeeping. When you want to convert Quickbooks to Xero, your biggest reasons would be – least learning curve, smooth accounting and saving time. It is very intuitive and easy to use system. Xero offers a good number of integration options in its respective marketplace. Xero’s Business Performance Dashboard offers amazing customizations and highlights your most important metrics.
The next important factor to consider when you wish to convert Quickbooks to Xero is the method of conversion. You can choose from a couple of methods from converting from Quickbooks to Xero. The method you choose will depend upon a lot of factors.
Where are you located?
If you are located in the United States, you may easily use the free conversion and organization set up of Xero.
If you are located in any Asian country or any country outside the US, or you are converting from another Quickbooks version, you can opt for any one of the applications availaible on Xero’s App Marketplace.
How long does the conversion take?
When you are attempting to convert Quickbooks to Xero, the conversion time takes three hours in most cases. In other cases, it may take up to a few business days depending on the volume of your data.
Understanding the version of your Quickbooks file
While you are converting your Quickbooks file to Xero, consider the following criteria –
Version: What’s your US edition of QuickBooks? Is this version 2007 or newer?
Currency: Do you have QuickBooks files with one currency? Do check that multi-currency in your QuickBooks has never been turned on.
Data: You will need data for the current fiscal year, and the previous fiscal year if QuickBooks holds this data.
You also have the option of converting data from earlier fiscal years by paying a certain cost using one of Xero’s partners like MMC Convert.
Ready to convert Quickbooks to Xero? Here’s what you will need
1] Organize your Quickbooks data
At MMC Convert, we suggest you and our clients to tidy up or organize any accounting work that’s needed to be done before converting to Xero. For instance, check if you have done your bank reconciliation or have applied open credits to the correct invoices or bills.
2] Minimize chart of accounts
Ensure that you have a maximum of 699 accounts in the chart of accounts and this count includes inactive accounts. This can be easily done by deleting inactive accounts and duplicate accounts.
3] Turn on account numbers
Another important point is to turn on account numbers because account numbers in QuickBooks convert to account codes in Xero.
Time to save your Quickbooks file
Now that you have checked the above important factors, it’s time to save Quickbooks file. You should save your Quickbooks file in following formats –
However, make sure that your file size is less than 1GB.
If you have been using Quickbooks Online, you should convert the file to QBXML format. For doing this, follow these steps –
– First convert Quickbooks online to Quickbooks desktop from Quickbooks website. You will need a PC using Internet Explorer 10 (or newer).
– Before you select Convert Now button, a QBXML file will download to your computer.
– Now push the Convert Now button to convert Quickbooks online to Quickbooks desktop.
– If you have QuickBooks Desktop version on Mac, first convert the file to Windows. In QuickBooks, choose File, then choose Back up to QuickBooks for Windows.
Remember: In order to upload your file to Xero, you will need to create a new organization.
How to finally upload your Quickbooks data to Xero?
Once you have created a new organization, you can download your Quickbooks data to Xero. You can do this by following these steps –
1] Sign up for a new Xero Account from Xero website
3] Now you can fill in the name of your organization. Select the country where your business pays taxes. Click Want to convert your QuickBooks data for free?
4] Click Continue
5] Choose Yes, convert my QuickBooks data
6] Click Choose File. Select from your computer the QuickBooks file you had saved.
If the file is password protected, enter the Quickbooks Administrator username and password. Xero won’t be able to convert your data if you enter the username and password of someone who doesn’t hold the Quickbooks administrator account/role.
7] Now you can check the box of Terms of Service and confirm.
8] Click Continue. You will now see a file downloading.
A word on troubleshooting
You can view the progress of your file easily while your file is being downloaded and fix errors. You will see these options clearly on Xero website. If there’s any error in conversion, the website will promptly notify on your screen. In order to view progress, click on the name of the organization and select My Xero. Under Conversions tab, you can view the progress of conversion. If there’s an error, select Fix Errors for getting information about it and the steps to direct you to fix it.
What happens after conversion?
Xero sends you an email asking you to become a subscriber and for setting up the organization. Here you will get a log-in link and after you log in, you will need to accept the subscription transfer. After this, you will get complete access to your organization.
Your decision about converting Quickbooks to Xero must be prompted by your need for smooth accounting and the size of your business.