Data Migration Guide

How to Switch Accounting Software

Switching accounting software feels daunting, but most migrations are straightforward if you follow the right sequence. This guide walks you through every step, from choosing a migration date to verifying your opening balances. Updated 26 March 2026.

Before you start: three things to get right

Tell your accountant first

Your accountant may have preferences about the destination platform or timing. They may also offer to handle part of the migration. A 20-minute conversation now prevents weeks of back-and-forth later.

Never migrate mid-year without a plan

Migrating mid-financial-year is possible but requires more work. You will need to enter all year-to-date transactions or use manual opening balances. Budget one to two extra hours of accountant time.

Lock your old system before you start

Once you have exported your opening balances, stop entering new transactions in the old system until the new one is verified. Dual-entry during setup creates reconciliation headaches.

The 7-Step Migration Process

Audit and export your current data

Time: 1 to 3 hours

Before anything else, create a complete export of your existing data. You will need these files at multiple points during migration.

›Trial balance as of your migration date (in PDF and Excel/CSV)
›Chart of accounts with account types and codes
›Full customer list with contact details and outstanding balances
›Full vendor/supplier list with contact details and outstanding balances
›Open invoices (unpaid) and open bills (unpaid purchase orders)
›Bank and credit card statements for the current year
›Payroll records if applicable
›Fixed asset register if you track depreciation

Choose your migration date

Time: 10 minutes

The migration date is the date your new system starts. All transactions before this date become opening balances. All transactions on or after this date are entered into the new system.

›Start of financial year (easiest, strongly recommended if possible)
›Start of a quarter (good if year-end is months away)
›Start of a calendar month (minimum recommended boundary)
›Mid-month (avoid unless you have an accountant handling the migration)

Note

Most platforms calculate tax periods (quarterly VAT, GST, sales tax) based on transaction dates. Migrating at a period boundary eliminates the risk of split periods.

Set up your new software

Time: 2 to 5 hours

Set up your new platform before importing any data. Getting the structure right first saves hours of corrective work.

›Create your company profile with legal name, address, tax ID, and financial year dates
›Set your base currency and tax registration status
›Build or import your chart of accounts (most platforms accept CSV imports)
›Configure your invoice template with your logo and payment terms
›Connect bank accounts and credit cards via bank feeds
›Set up tax rates matching your jurisdiction
›Invite your accountant with appropriate read-only or editing access

Enter opening balances

Time: 1 to 4 hours

This is the most important step. Opening balances tell your new system the state of every account on day one. They must match your trial balance exactly.

›Navigate to the opening balances section (varies by platform)
›Enter the closing balance of each account from your trial balance
›Enter all unpaid customer invoices individually (not as a lump sum) so statements are accurate
›Enter all unpaid vendor bills individually
›Enter bank account balances matching your bank statements
›Enter outstanding payroll liabilities if applicable
›Run a trial balance in the new system and compare it to the exported one

Note

Entering open invoices as a lump sum is faster but means your customer statements will not show individual invoice history. If you send statements regularly, enter each invoice separately.

Import or enter historical transactions

Time: 2 to 8 hours depending on volume

For most small businesses migrating at year-end, you only need the opening balances above. If you are migrating mid-year and need YTD history in the new system, you have three options.

›Full transaction import via CSV (most platforms support this, some require a specific template)
›Use a dedicated migration tool (QuickBooks to Xero, QuickBooks to Zoho, etc.)
›Manual entry for small transaction volumes (under 100 transactions)
›Enter a single journal entry for each month of the current year if full import is impractical

Note

Do not import transactions if you only need the opening balances. Importing creates duplicate entries unless you set the import start date correctly.

Run parallel for 30 days

Time: Ongoing for one month

Keep both the old and new system active for at least one full month. Enter every transaction in both systems and compare reports weekly.

›Compare weekly bank reconciliation totals in both systems
›Compare monthly profit and loss reports for any discrepancies
›Reconcile any differences immediately rather than letting them accumulate
›Send one invoice from the new system to a trusted client to test the payment workflow
›Confirm your accountant can access and navigate the new system

Note

Running parallel for 30 days feels like double work, but it catches data entry errors before they compound. Skipping this step is the most common cause of messy accounts after migration.

Archive and close your old system

Time: 30 minutes

Once you are satisfied your new system is accurate, close down the old one properly.

›Export a final backup in PDF and CSV formats (store in at least two locations)
›Export the full transaction history as a CSV file
›Downgrade to the lowest paid tier or switch to read-only access if available
›Keep the account accessible for at least 12 months for tax and audit purposes
›Update any payment links, invoice PDFs, or client portals that referenced the old system
›Cancel or downgrade auto-renewal if you are done with the old platform

Common Migration Routes and Tools

From	To	Best Approach	Difficulty
QuickBooks Online	Xero	Xero's built-in QuickBooks import tool handles CoA, contacts, invoices, and bills automatically	Easy
QuickBooks Online	Zoho Books	Zoho's QuickBooks migration tool imports chart of accounts and contacts. Transactions need CSV import	Medium
QuickBooks Desktop	QuickBooks Online	Use the official QuickBooks Desktop to Online migration. Works well for companies under 3 years of history	Easy
Xero	QuickBooks Online	Manual CoA setup then CSV import of contacts. Transactions require manual entry or a third-party migration service	Medium
Wave	QuickBooks Online	Export Wave data as CSV. Manual chart of accounts setup then CSV import. Wave does not have a direct migration tool	Medium
FreshBooks	Xero or QuickBooks	Export FreshBooks clients, invoices, and expenses as CSV. Import contacts first, then invoices. No automated tool exists	Hard
Spreadsheet	Any cloud platform	Format your data to match the platform's CSV import template. Start with customers, then chart of accounts, then opening balances	Medium

Migration FAQs

How long does it take to migrate accounting software?

A simple migration (opening balances only, no historical transactions) takes 4 to 8 hours total for a business with 12 months of history. A full historical migration with all transactions takes 1 to 5 days depending on transaction volume. Businesses with more than three years of history typically benefit from paying a bookkeeper $200 to $500 to handle the migration.

Will I lose my historical data when I switch?

No, provided you export it before cancelling your old subscription. All cloud accounting platforms allow you to export your full transaction history as CSV and PDF. Export these files and store them in at least two places (cloud storage and a local drive) before deactivating the old account. Tax authorities in most countries require you to retain financial records for 5 to 7 years.

Do I need to tell HMRC or the IRS that I changed accounting software?

No. Tax authorities do not require notification of software changes. Your obligation is to maintain accurate records and file accurate returns. What matters is that your new system produces correct tax reports and you can reconcile back to your bank statements. If you use Making Tax Digital (MTD) in the UK, ensure your new software is MTD-compatible and re-authorise it with HMRC.

Can I migrate partway through a VAT or sales tax period?

You can, but it complicates your next tax return. You will need to manually reconcile transactions from both systems to produce one combined VAT or sales tax return for that period. Most accountants recommend waiting until the end of a tax period to migrate, even if that means a few extra weeks on the old platform.