Xero conundrum. I hope someone knows the answer.

Xero support is not getting back to me. I think I hit a dead spot. I hope not.

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Dear Aweb community. I am hoping one of you can help or I might lose my sleep over this.

This is more or less the continuation of my previous post but asking for help this time.

Those of you who use both Quickbooks and Xero might have a better chance to understand my issue and hopefully might know the answer to this conundrum.

I am a lot more familiar with Quickbooks is what I need to tell you first.

Often when I onboard a new client on Quickbooks my starting point will be their previous year end figures. I create a journal from the year end TB, let's say at 31.03.2022, and then the bank feeds start on 01.04.2022. Simples.

I am currently trying to set up a new client on Xero and my intention was to proceed the same way I would do on Quickbooks. But there's hiccup. Apparently it's not possible to select a bank account in a journal. Why not, I'm not sure. I've had to temporarily post the bank balance as a Current Asset. I'm now stuck not knowing how to transfer this balance to the bank account which my client has now linked as of 01.04.2022. Is there a way I can resolve this?

May I ask how others proceed when they onboard a new client on Xero? Surely you don't have to add all the feeds from day 1? I'd be very curious to know.

Replies (4)

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By ireallyshouldknowthisbut
27th May 2022 08:41

You use the specific tool in Xero to set up the opening balances. As part of this it asks your opening balances for the bank. it comes up automatically when you start setting up the company, or you can find under "advanced accounting", "conversion balances"

Generally with software you will fall flat on your face if trying to use it like another bit of software. They are all different and do the same things in different ways. You should probably watch the tutorial video on this topic so you do it their way next time, its quite a neat tool.

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By rmillaree
27th May 2022 08:48

all the providers have their own quirks - i sort of see why xero do it the way they do it despite the fact it may make life hard. There is reasonably simply workaroudn here though thankfully.

I think you may be missing the fact that xero asks for a start date and allows you to formally enter all opening balances be they tb balances bank balances or trade debtor/creditor details.

So all you do is is go to accounting advanced conversion balnces - enter your start date (ensure conversion date is correct) and then enter your opening balnces including bank. No need for any journals and these balances can be tweeked if necessary. This is actually a good way of dealing with these balances as its clear what they are rather than simply being in amonst other journals. Ensure you dont include any transaction sbefore your start date or that will probably end of making lfe complicated !!! if you do need to entyer prior dated transactions reverse the totals back out via journal on day before conversion so if everything works.

If you need to do bank adjusts for any other reason that you would do via journal normally simply post bank payment / receipt to appropriate holding nominal (eg bank contras) and do teh relevant journal to that account.

I am bamboozeled by xeros lack of suport here i have found that their ticketing system works and for opening balance conversion issues they have specialist team who will ring you up and speak to you.

Ref op balances highly recommended you NEVER get your conversion date wrong as amending conversion dates lates can cause chaos if you enter with wrong date and need to amend.

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By Mr_awol
27th May 2022 09:42

If you havent done their migration certification perhaps look into that. Youll get a booklet showing you how to do all of this.

If you have done it, then do it again - but pay more attention this time :)

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By RobbieT
27th May 2022 10:43

The Conversion Balances tool is your long-term approach, but if you're trying to jam a quick workaround, post the y/e bank balance TB journal entry to suspense, then go to the bank and do a Receive Money* transaction coding the other entry to suspense.

*Assuming its a positive / debit balance. If overdrawn, Spend Money to suspense.

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