For your accounting records, we will start you on Xero on the 1st day of a month however you will need to choose which month. This will depend on how you’re currently managing your accounts and what data you want us to bring across. We would suggest:
- The month your current VAT period starts from if you are VAT registered, or
- The current month if you are not VAT registered
Please note that the start date for using Xero can be different to the start of your financial year. If you have a current accounting system, we will be able to generate a Trial Balance which will show the balances of all your accounts and these will be entered against each account in Xero during the Setup process.
If at your Xero conversion date there are invoices or credit notes in your current accounting system that haven’t been paid or received payment we will enter these as historical transactions. Each invoice/credit note shall be entered individually so when you receive payment, we can match them back to these invoices.
If your conversion date is part way through your current VAT period, we will not be able to use Xero to generate an accurate VAT Return for that period because Xero does have all the relevant transactions to calculate the VAT from. We will discuss this with you in more detail and may recommend you choose the start of the following month for the conversion date if that is when the VAT quarter begins.
