Enter starting conversion balances in Xero
New Section
In this video, you will learn how to enter conversion balances in Xero. The process involves setting the conversion date and entering account balances manually or through other methods.
Entering Conversion Balances
- To enter conversion balances in Xero, go to the Accounting menu and select Advanced, then choose Conversion Balances.
- Set the conversion date, which is the date you began processing transactions in Xero. It is recommended to choose the start of a tax period.
- If unsure about the conversion date, click on a provided link for assistance on deciding a suitable date.
- Save your chosen conversion date. Xero updates the date range for your conversion balances.
- Close any confirmation messages to proceed.
Account Balances Entry
- Enter your account balances as they were on the day before you started using Xero.
- Use your company's trial balance to obtain this information. If unavailable, contact your advisor for a copy.
- There are three ways to enter balances:
- Manual entry
- Bulk import
- Assistance from a Xero conversion specialist
Manual Entry of Balances
- Begin by entering the balances in your bank accounts. Check online statements for accurate information.
- Positive balances should be entered in the debit column.
- Overdrawn credit cards or bank accounts should be entered in the credit column.
- Next, enter the total sum of unpaid invoices as accounts receivable at your conversion date.
- Similarly, enter the total sum of unpaid bills as accounts payable at your conversion date.
- If there are more accounts with balances, click "Show all accounts" to access your entire chart of accounts and enter their respective balances according to your trial balance.
Validation and Completion
- After entering all balances, ensure that total debits equal total credits and no adjustments are needed.
- Click "Remove Xero balances" to view only accounts with an amount. Confirm that all balances have been entered correctly.
- Save your entries.
- If unpaid invoices or outstanding bills have not yet been entered in Xero, you will need to add sales invoices, credit notes, or bills to bring the balance to zero.
- Once this step is completed, Xero saves your conversion balances.
- Run a trial balance or a balance sheet report to confirm that your conversion balances match the balances from your previous software as of the conversion date.
- If everything agrees, return to the conversion balances and lock the dates at the bottom of the page. This prevents others from entering transactions prior to this date and making changes to the conversion balances.
- Save your changes when finished.
New Section
After entering conversion balances in Xero, it is important to validate them and lock the dates for accuracy and security.
Validation and Locking Dates
- Run a trial balance or a balance sheet report to confirm that your conversion balances match those from your previous software as of the conversion date.
- If there are any discrepancies, investigate and make necessary adjustments before proceeding.
- Once validation is complete:
- Scroll down to the bottom of the Conversion Balances page in Xero.
- Select the option to lock balances. This prevents others from entering transactions prior to the specified date and making changes to the conversion balances.
- Save your changes.
The transcript does not provide further content beyond this point.