Xero Migration Pitfalls: What To Watch Out For
Migrating to Xero can be one of the most valuable moves a finance team makes — but only when done correctly. From real-time insights to automation and seamless integrations, the benefits are significant. Yet many migrations fall short, leaving businesses with unreliable data, frustrated teams, and wasted time.
At BookCheck, we’ve supported countless organisations through successful migrations. Here are the key pitfalls to avoid — and how to ensure your move to Xero sets you up for long-term success.
1. Underestimating Data Quality Issues
If your current system contains errors, duplicate records or mis-coded transactions, migrating "as is" simply transfers the problem.
Common mistakes:
- Migrating unused or outdated nominal codes
- Carrying forward incorrect balances
- Bringing in duplicate, inactive or incomplete contacts
✅ Tip: Before migration, run a data health check and clean up your chart of accounts, contacts and balances.
2. Incomplete or Incorrect Opening Balances
Opening balances are the foundation of accurate reporting. If they don't reconcile, neither will your future reporting.
Watch out for:
- Opening balances different from the formal Year End
- Unreconciled bank items carried over
- VAT not reconciled
✅ Tip: Reconcile accounts to year-end AND to migration date — then check again.
3. Losing Historical Transaction Detail
Many migrations bring only summary data, which can limit visibility and audit trails.
Issues this can cause:
- Difficulty reviewing trends
- Missing comparative periods
- Incomplete customer or supplier history
✅ Tip: Where possible, migrate full transaction history — or ensure archived data is accessible and accurate.
4. Misconfigured Chart of Accounts
Xero's flexibility is a benefit — but only if the chart of accounts is structured correctly.
Risks include:
- Inconsistent coding
- Duplicated accounts
- Incorrect mapping of control accounts
✅ Tip: Review and optimise your chart of accounts specifically for Xero’s structure, not your old system.
5. Banking Setup & Reconciliation Traps
Bank feeds are a game-changer — but only when set up properly.
Common issues:
- Duplicate bank accounts
- Missing opening bank reconciliation statements
- Importing bank data incorrectly, leading to duplicates
✅ Tip: Set live bank feeds first, then bring through historic transactions carefully to avoid duplication.
6. Not Setting up VAT Correctly
VAT rules and reporting differ between systems. Getting this wrong risks under- or over-paying HMRC.
✅ Tip: Review VAT settings, schemes, and historical VAT returns to ensure compliance from day one.
7. Lack of Training & Change Management
Even the cleanest migration will fail if the team doesn't know how to use Xero.
Symptoms:
- Incorrect coding
- Bank reconciliation errors
- Misuse of automation rules
✅ Tip: Provide hands-on Xero training and establish clear bookkeeping procedures
8. Not Leveraging Add-Ons & Automations
Migrating without setting up key tools (such as Receipt Bank / Dext, ApprovalMax, or Hubdoc) means missing out on efficiency gains.
✅ Tip: Review workflows and implement the right add-on ecosystem from the start.
9. Going It Alone
A DIY migration may seem economical, but fixing mistakes later costs more — in time, money and credibility.
✅ Tip: Partner with a Xero specialist to manage the migration, verify data, and train the team.
How BookCheck Ensures Smooth, Accurate Xero Migration
We don’t just move data. We deliver:
- Expert planning & structured migration
- Full clean-up and reconciliation
- Chart of accounts optimisation
- VAT validation
- Payroll setup & transition
- Controller-level review for accuracy
- Training & post-migration support
Our goal: to ensure your Xero system works perfectly — first time and long-term.
Thinking of Migrating to Xero? Let’s Talk.
When you are planning a migration, we can help ensure it runs smoothly and supports your business goals.
James Wetherall
Call us on 0208 0666299 or email us to [email protected].