Understanding Accounting Systems and Migration Types
Before embarking on any data migration, it is essential for businesses in Singapore to understand your existing and new accounting system, including the pros as well as limitations for both systems. This knowledge can help businesses to make informed decisions during the migration process.
There are several options available with respect to the type of migration. Some businesses choose to transfer only the outstanding trial balance as of a specific date, while others may opt to migrate all historical transactions for the past 1 to 3 years for example. Basically the more data records that you choose to migrate, the more costly and time-consuming the entire process will be.
Identifying the Right Time to Migrate
To ensure a smooth transition, businesses should choose a migration timeframe that avoids the business peak and high-volume periods. It will be most recommended to commence the transition at the end of a GST quarter or at the end of the business financial year.
Migration to Xero, DIY or Engage Professional Help?
Businesses can choose to manage the migration with their own in-house expertise or alternatively, they can also decide to engage a professional service provider in Singapore. If you are familiar with Xero, then a DIY migration will be feasible. Businesses will need to familiarise themselves with Xero’s conversion process and user interface, and mapping their current accounting system to Xero, using tools such as Xero’s data import templates or using an online software converter.
On the other hand, engaging a professional service provider will help to ensure a smooth and accurate migration process for your business. Over at Team 361, we have a proven track record of many successful migrations that have been done for SMEs in Singapore. Besides being well-versed with Xero’s best practices, our team also has a strong knowledge of local regulations that will help to ensure compliance to mandatory standards. In addition, we will provide the necessary training and support services to assist you fully in your Xero journey.
Preparation for Migration
Data cleaning is crucial before migration takes place. Businesses should always make it a point to clean up their existing accounting data prior to the migration process, so as to minimise any potential errors that could occur. This will include fixing any data inaccuracies, categorising unclassified transactions, eliminating duplicate customer records, ensuring consistency in customer details and removing obsolete vendors and products before the migration process.
Migration Checklist
To ensure a thorough migration, businesses can use the following checklist as a quick guide:
- Set up the chart of accounts
- Create bank accounts
- Input the trial balance as per the cut-off date
- Include previous years’ trial balance for comparison
- Break down accounts receivable and payable
- Import contacts, products and services
- Create tracking categories
- Customise customer-facing templates such as invoice and statement of accounts
Ensuring Post-Migration Data Integrity
Before going live, it is essential to perform a data integrity check to ensure everything runs well. Check the imported data against your old system to make sure that everything is accurate and in place. You can follow the steps below:
- Compare balances in Xero against your previous system.
- Check accounts receivables and payables against the trial balance report.
- Review contacts, account codes, products, and services in Xero.
- Look for duplicate contacts, missing details, errors in names, dates or financial entries.
Let us do it for you
Migrating to Xero requires careful planning and execution. Familiarity with the system’s functions is crucial for a successful setup and migration. At 361 Degree Consultancy, we take pride in being a Xero Platinum Partner, having successfully completed over 700 data migrations from various accounting platforms to Xero.
Our extensive experience ensures seamless transitions to Xero for SMEs and businesses in Singapore. Partner with Team 361 for a seamless migration to Xero. Contact us at 6515 7906 or enquiry@361dc.com to transition to Xero today!
