Ready to lift your business to the next level? Xero, a cloud accounting software, is here to transform your accounting to help your business. Its user-friendly layout and powerful capabilities make cloud bookkeeping simple for small and medium enterprises.

As your company grows, so does Xero, automating tasks and improving financial control. This guide will provide you with the essential steps to a hassle-free migration to Xero. You’ll be able to do what matters most—drive your business forward. Let’s unlock the potential of Xero together!

1. When is the suitable time to implement Xero?

Converting to Xero accounting software can significantly streamline your financial control. It is particularly useful when your business evolves and becomes increasingly complex. There are two things to consider in determining the optimal time to implement Xero and start your digital transformation.

New Financial Year for Your Business:

Starting using Xero at a new financial year provides a blank canvas. You can create your accounts from scratch. You can ensure all opening balances are accurate. This setup is your stance in relation to money, for the forthcoming year.

Cut-off Date During Financial Year:

If you wish to change halfway in the financial year, select a convenient cut-off date. It should be consistent with your current accounting procedures. For example, you can take a cut-off date at the start of a new SST period if you are SST registered. Or, if you are not SST registered, you can simply use the present month.

This method allows you to bring over past financial details, such as unbilled sales and bank balances. It makes your books of account consistent.

By applying the most suitable time to your Xero, cloud accounting software in Malaysia, you’ll be able to automate your finance processes and enhance your business performance, especially in e-commerce. Starting to use Xero is a decision that will keep your business running for even more success.

2. Cost of implementation Xero

If you’re considering using the accounting services of Xero for your business, you have to consider the cost of Xero implementation. Here are some things to keep in mind. Also, Xero provides a 30 days free trial to all, try Xero for free before you implement it in your business.

Remember that the Xero mobile app comes with your subscription. This feature allows you to access your accounting anytime and anywhere. It provides convenience and flexibility for managing your finances on the go.

Subscription Fees

Xero is subscription-based. The cost varies based on the plan you select and is around RM130 to RM330 per month (Excluding discounts). Think about what your business needs to get the most value. Learn more about the features of each plan here.

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Extra Features

Some features, like payroll and reporting, can have additional fees. Xero is not only for financial management, it can also integrate with other payroll software (Check on our FAQ below to know more) and POS systems . Carefully determine whether these features are necessary for your business.

Another feature that Xero Analytics Plus offers is the advanced cash flow forecasting tools. It utilizes artificial intelligence to give 60-day and 90-day forecasts. This feature helps to dig further into past trends in data. Overall, it is a useful feature for those businesses that are looking for additional financial insights.

Training and Support

Although Xero bookkeeping services are user-friendly, there may be a learning curve. Allocate funds for training sessions or support services to help ease your employees’ transition.

3. Who should be involved in the transition?

Implementing Xero involves cooperation from major stakeholders in your organization. Start with your finance department. This is made up of accountants, bookkeepers, and financial analysts. They see to the proper data migration and report consistency.

Then, involve IT support personnel for technical considerations. Management and project managers then take care of decision-making and timelines. If required, outsource external consultants for extra expertise.

End users should also be included. Their feedback will assist make the system more accessible. Finally, hire trainers to train staff personnel in using Xero. The collaborative effort will ensure a smooth transition process.

4. Data Migration from existing accounting software

Identify tasks to be completed

Before migrating to Xero, identify all necessary tasks.

Start by assessing the data in your current accounting system. Look for inaccuracies and duplicates that need correction.
Data cleaning is essential. Fix errors, categorize unclassified transactions, and remove obsolete records to reduce issues during migration.
Decide whether to transfer only the outstanding trial balance or all historical transactions. This choice affects the complexity and duration of the process.
Get your chart of accounts and bank accounts set up in Xero beforehand and customize them as needed.
Create a checklist of items to migrate, such as contacts, invoices, and e-invoicing data. Provide data integrity checks post-migration for precision.

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Setup a Gantt Chart to manage the transition tasks and deadlines

After task identification, prioritize them using a Gantt chart. This tool guarantees that the timeline is well managed. Start by outlining all the tasks and creating realistic timelines for them. Consider peak business periods to avoid disruption. Clearly assign tasks so that there is accountability.

The clarity guarantees that each person understands their role in the migration. Use the Gantt chart to track progress. Continuously update it to reflect completed tasks and adjust deadlines where required.

This systematic approach will facilitate a seamless transition to Xero accounting services and an error-free migration procedure.

5. Kickstart data-entry of daily business operations

After migrating to cloud-based Xero, it’s time to begin entering daily business operations. Xero can greatly reduce business data entry work, thanks to Hubdoc. This tool automates data capture and makes it easy to upload documents and key information into Xero.

Capture bill and receipt data easily with Hubdoc. Simply photograph, scan, or email them in. Hubdoc can read important data like supplier names, amounts, invoice numbers, and due dates.

This data is applied to draft transactions within Xero to save valuable time, reduce manual workload, and minimize errors.

Once the data is in Xero, it automatically syncs with your bank feeds. This connection keeps your finances reconciled and current at all times. Hubdoc also allows you to keep all your documents online, and you can view them anywhere.

It makes you paperless and organizes documents automatically into supplier folders. Your data is safe.

By using Hubdoc with Xero, your employees can allocate less time to data entry and more time to analyze it. This more efficient method enhances productivity and efficiency in daily operations.

6. Review the accuracy of Financial Statements numbers

After entering the data, it’s essential to verify the integrity of your financial reports. Perform a detailed reconciliation to ensure Xero figures are the same as those of your old and traditional accounting system.

Compare balances and scrutinize transaction entries to ensure all information has been imported accurately and the right number of entries are reflected. This process is critical in establishing confidence in your financial reports and backing sound decision-making.

7. Final Team Meeting to ensure real-time financial statements are accurate

Discuss your findings in the final meeting with your team after reviewing the financial statements. This ensures that everyone confirms the accuracy of the data and any anomalies identified. Encourage open discussion among the members so any disparity is solved amicably.

In doing so, your financial statements are reliable and prepared for real-time reporting. Thus, moving forward with Xero does not pose a significant challenge, as the team can entrust its financial data to you.

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Frequently Asked Question (FAQ)

1. Which banks does Xero work with?

Xero works together with numerous banks in Malaysia for better banking integration. You are able to connect your CIMB account with Xero for daily bank feeds. By doing so, you are able to view your cash flow in real time.

The HSBC Business Go account also connects to Xero for automatic transaction import.

There is no direct bank feed available for Public Bank. You can, however, use a Google Sheets template called Bank2Xero for bringing Public Bank statements into Xero.

A few of the other banks that are supported by Xero in the near future are Maybank and RHB Bank, stay tuned to our blog update!

2. If I’m using Xero, will I still require an accountant?

Yes, you will still benefit from the services of an accountant, even though you might use Xero. The software itself is simple to use, but an accountant can make the most of its features. They will be able to identify key things that you may overlook.

It’s possible to handle basic operations, but an accountant gets your money in the right shape and in accordance with changing tax laws. It’s like fixing a leaky faucet; you might fix it yourself, but a professional will catch any problems within.

You can concentrate on building your business by pairing Xero with an accountant.

3. Does Xero do payroll and inventory management?

Yes, Xero also has inventory management. With Xero’s inventory management software, you can track stocks in real time, keeping perfect track of your inventory anywhere you have an internet connection. This enables you to see the best-selling products and manage inventory effectively, especially in the F&B industry. You can also add products to purchase orders and bills, making billing easier.

Check on the blog -> 2025 Top 5 Cloud Inventory Software in Malaysia

For payroll functionalities, Xero simplifies the pay run process. You can enter employee hours, rates, and deductions, and Xero will do the math for you. For more advanced payroll functionality, you can integrate third-party payroll apps to Xero.

Overall, Xero offers a one-stop-shop solution through robust integration with other payroll and inventory for your growing businesses.

Check on the blog -> Top 7 Best Cloud Payroll Software in Malaysia

4. How many transactions can Xero handle in a month?

There are transaction limits set by Xero to keep it running optimally. You can process a maximum of 1,000 sales invoices for a month. Similarly, you can process a maximum of 1,000 purchase bills in a month. For bank transactions, Xero can process about 2,000 transactions per month.

As regards inventory, the recommended maximum is 4,000 tracked items per organization. If your company consistently exceeds these levels, you may experience suboptimal performance.

Maintaining these boundaries will provide an optimal experience when utilizing Xero.

5. What if financial statements are wrong?

If your financial reports are not accurate, it can have dire consequences for your business. It can lead to poor decision-making and regulatory fines. To fix errors, start by reconciling your Xero statement balance with your actual bank balance. If the balances do not match, check the opening balance and determine where the error took place.

Look for missing bank statement lines, duplicates, or transactions that have been marked off incorrectly as reconciled. You can use Xero’s Bank Statement report to identify discrepancies.

Once you find the error, perform the steps to correct it. Import any missing transactions, delete duplicates, or restore any lines that have been inadvertently deleted. In doing so, you can make your financial reports in Xero reliable and accurate.

If you still have questions and need more information about the digital transformation journey of Xero, Caltrix Asia, a certified Xero advisor and Xero partner is the right place for you!

About Xero

Xero is a global small business platform with 4.2 million subscribers. Xero’s smart tools help small businesses and their advisors to control core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments. Xero’s extensive ecosystem of connected apps and connections to banks and other financial institutions provide a range of solutions from within Xero’s open platform to help small businesses run their business and control their finances more efficiently.

Transitioning to Xero: A Simple 7 Steps Guide for Malaysian Businesses