MYOB to Xero migration
Moving from MYOB to Xero, and what a conversion leaves behind
A conversion moves your data. It does not move your setup, and the difference is where most migrations go wrong. We were MYOB and QuickBooks advisers before we were Xero advisers, so we know both ends of the move: what the two systems genuinely do differently, what the conversion tools carry across, and the short list of things they leave behind that nobody notices until a pay run or a BAS.
What goes wrong without it
The data arrives. The setup does not
A migration that technically succeeded and practically failed looks the same on day one. The difference shows up at the first pay run, the first BAS, or the first time somebody looks for last year's figures.
The conversion carried the data, not the decisions
Tracking category opening balances, superannuation fund details and some payroll information do not come across. Bank account details frequently come across incorrectly. None of that is visible until you use it.
GST is not treated the same way in both systems
MYOB and Xero handle GST coding differently. Codes that were right in the old file are not automatically right in the new one, and the review has to happen after the move rather than before it.
Nothing was rebuilt, because nothing was meant to be
Invoice templates, bank rules, repeating transactions and integrations are not migrated, because they are not data. They are configuration, and configuration is rebuilt.
What you get
A file that works on the first Monday
The source file cleaned before anything moves: balances, contacts, item lists and inventory
A mapping exercise, because MYOB, QuickBooks and Xero treat accounts and inventory differently
A decision on how many years of history to carry, and why more is not automatically better
GST coding reviewed and corrected after the move, not assumed to have survived it
Invoice templates, bank rules, repeating transactions and integrations rebuilt
STP finalisation reviewed so employee income is not reported twice across two systems
Both systems run in parallel afterwards until the new one is proven
Training included, because leave applications and everyday tasks work differently in Xero
How it works
Four steps, and the timing matters
1
Scope it before anything moves
This is where the surprises are cheapest. One practical example: a business with 40 employees and two years of history had a combined active and inactive employee count above 50, which required a larger conversion package. Finding that at the start is a scoping note. Finding it halfway through is an incomplete migration.
2
Clean the source, then convert
Bank balances, contacts, item lists and inventory are tidied in the old system first. A conversion faithfully reproduces whatever it is given, so anything wrong on the way in is wrong on the way out, and harder to see in an unfamiliar file.
3
Rebuild what a conversion does not carry
Chart of accounts mapping, GST coding review, tracking categories, payroll settings, templates, bank rules and integrations. This is the part people mean when they say the migration was fine but the file was not.
4
Run both systems until the new one is proven
Parallel running is how you find out the migration was complete rather than assuming it. It also means the first BAS out of the new file can be checked against something.
Who it suits
When to make the move
Start of a new financial year
Ideal. Begin about two weeks before 1 July so the file is ready rather than rushed.
Early in a new financial year
Still good. Not much history is missed and the year is largely ahead of you.
Around six months in
Workable. Run both systems in parallel afterwards so the join can be checked.
Current year clean, earlier years messy
Migrating the current year only is sometimes right. That is a specialist decision, not a default.
Questions we answer every week
Questions we are asked most
Is Xero better than MYOB?
The honest answer is that it depends on what you need it to do, and anyone who answers it without asking about your payroll, your inventory and your reporting is selling rather than advising. We advised on MYOB before we advised on Xero. The differences that actually matter to a decision are in bank reconciliation, payroll, leave, timesheets, jobs and inventory, and they matter in a different order for every business.
What does a conversion not bring across?
Tracking category opening balances, superannuation fund details and some payroll information are not migrated, and bank account details frequently come across incorrectly. Separately, custom invoice templates, bank rules, repeating transactions and integrations are not built, because they are configuration rather than data. None of this is a criticism of the conversion tools. It is the documented boundary of what a conversion is.
Can we just use the automated conversion ourselves?
You can, and for a small, simple, well-kept file it may be all you need. We have seen enough do-it-yourself migrations produce files that cost more to clean up afterwards than a guided migration would have cost, so the question worth asking first is how much history is coming, how complicated the payroll is, and whether the source file is tidy.
How many years of history should we bring?
Enough for comparatives and no more than you can vouch for. Carrying five years of a file you do not trust means carrying five years of a problem into a system you were hoping would fix it. If the current year is clean and earlier years are not, migrating the current year only is sometimes the right call.
What happens to payroll and STP?
Payroll needs the most care, because it is the part that reports to somebody else while you are moving. STP finalisation has to be reviewed so employee income is not reported twice across the two systems, and the payroll settings have to be rebuilt rather than assumed. Leave applications and several everyday tasks also work differently in Xero, which is why training is included rather than offered.
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