Here is our recommendation of what to check before converting to Xero:
Ensure that MYOB is set to the correct accounting basis (cash or accrual) under Setup, Company Information, BAS Information.
Suggested by our team of experts:
- Check that balances in all reconciled bank accounts and credit cards actually reflect the statement balances as of the last reconciliation date. Finalise all bank reconciliations. (Reconciliation is easier in Xero, so we recommend leaving unreconciled periods unreconciled in MYOB. However you need to make sure that the bank balances are correct as of your conversion start date.)
- Ensure all clearing accounts (including Undeposited Funds and Electronic Clearing Account) are reconciled to NIL.
- Confirm that the Accounts Payable report reconciles to Supplier statements and that all unpaid invoices are still due.
- Ensure all credit notes are applied unless actually unused.
- Repeat points 4 and 5 for Accounts Receivable.
- Run a Reconciliation Summary report (for sales and purchases) as of the last day of the financial year in MYOB (e.g. 30/6/13) and make sure that it has no Out of Balance amount. Xero does not allow direct journals to system accounts.
- Check that your tax tables are up to date. If not upload the latest tax tables. You can do this in MYOB under Setup, Load, Payroll, Tax Tables.
- Ensure that all employees that are terminated have a termination date entered, rather than just being made inactive.
- Run a verification of the MYOB file (from the File menu). Fix any errors so that the MYOB file can be verified without any errors occurring.
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