Are you looking to make the switch from Sage to Xero? If you are looking to undertake this project yourself it is important that you understand what you need to have in place and the best approaches.
If you want to make your life easier, we are Xero Migration specialists so we make the whole process straightforward for you.
Preferably and simplest time is at your company’s financial year end. This allows us to transfer the data from Sage with a defined cut off point and makes the process much easier. We understand that Sage might not be the right choice for you, so it is definitely still possible to transfer at any time during the year but just makes the switch a little more complex.
To ensure the data transferred is correctly, it is best to make sure your Sage account is fully up to date before bring it to Xero.
To tidy up your Sage account, it will normally include:
There are two approaches to take to transfer your data from Sage to Xero:
A manual conversion is more time consuming however ensures your system is set up in the way you want it. Using a software conversion system can bring forward a lot of information however this is not always transferred correctly.
To manually transfer your Sage to Xero you would:
Using software to complete your conversion from Sage to Xero is often the easy option and generally works quite well. There are quite a few different softwares you could use however we would recommend Movemybooks.
Xero will cover your fee for using your software conversion under Movemybooks so it makes sense to use them! The only thing with software is that not everything will be transferred over and there will be post-conversion tasks that will need to be done.
When converting software there will be process that will need to be followed:
The biggest advantage of a software conversion compared to manual conversion is the time saved and having the historical data so you can compare year on year performances.
Charts of Accounts are the foundations of your business, if you have a good charts of accounts set up this give you a great starting point for good reporting. Currently you might only have one sales code called revenue which you report everything to however this could be split into multiple revenue streams so you know exactly where your revenue comes from.
This gives your business a strong reporting structure and is a massive benefit when it comes to management accounts are your reporting will be much more detailed allowing you to make better and quicker business decisions.
We understand this could sound a little complex, this is why we recommend speaking to one of our Xero Specialists who can advise you on the best approach for your business. Our accountants have experience within the construction industry and are here to recommend the best approach for you.
If you would like that extra level of support, Saint Financial Group are Xero Migration specialists so we can complete the conversion for you and help you get fully set up.
We specialise in the construction industry so we can run through the common set ups and ensure you know exactly what is happening through the process. We are here to support your business and if you are ever unsure what your next step should be give us a call on 020 8187 4201.
This article was written for Construction Insider by Saint Financial Group, a multidisciplinary group based in the UK that helps construction businesses develop and grow. SaintFG offers a range of quality solutions in supporting businesses.
Saint provides the luxury of free business consultancy for of our clients, call now for your free consultation with a friendly business advisor to discuss your burning questions and put that energy back into your business!
How do I price Construction Jobs? What's the difference between mark-up and margin? Find out everything you need to know about pricing your construction projects within this article!Next Article