Switching From QuickBooks to Xero: Migration Steps and Gotchas
Switching from QuickBooks to Xero takes planning, not luck. This guide covers the three migration methods, what data moves, what does not, and the gotchas.
By Galactic News Editorial · Published 2026-11-11T10:20:37+00:00 · Updated 2026-11-11T10:20:37+00:00
Switching From QuickBooks to Xero: Migration Steps and Gotchas
Yes, you can switch from QuickBooks to Xero. The move is well supported, and Xero offers free conversion tools for QuickBooks users. The hard part is not the transfer itself. It is the preparation, the data that does not move, and the checks you run after. This guide walks through the whole process step by step.
Pick Your Xero Plan Before You Switch From QuickBooks to Xero
Xero sells three US plans. Early costs $27 a month. Growing costs $59 a month. Established costs $97 a month. All three include unlimited users, with no per-user fee. That is a real difference from QuickBooks Online, where the number of users is limited by plan.
Early is tightly capped. It allows 20 invoices and 5 bills a month. Most active businesses outgrow it fast. Growing removes those limits and adds automatic bank reconciliation, budgets, and a 60-day cash flow forecast. Established adds multi-currency, project tracking, expense claims, and a 180-day forecast.
Payroll is separate in the US. Xero Payroll, powered by Gusto, costs $36 a month plus $6 per person paid. Factor that in if you run payroll in QuickBooks today. For comparison, QuickBooks Online lists Simple Start at $38 a month, Essentials at $85, Plus at $140, and Advanced at $340.
What Transfers to Xero, and What Does Not
Most core accounting data moves across. Some things never transfer, no matter which method you use. Know the list before you start.
| Data | Transfers? | Notes |
|---|---|---|
| Chart of accounts and balances | Yes | Xero uses a flat chart, so parent accounts must be flattened first |
| Customer and supplier contacts | Yes | Invoices, bills, and credit notes come with them |
| Historical transactions | Yes, with limits | Free tools cover the current and prior financial year |
| Bank transactions | Yes | Reconciliation history does not carry over |
| Bank rules and reconciliation rules | No | Rebuild them in Xero after the move |
| Recurring invoices and templates | No | Set them up fresh in Xero |
| Payroll history | No | Enter year-to-date figures manually |
| Budgets and custom reports | No | Recreate them in Xero |
| Attached documents | No | Download and reattach what you need |
| Inventory cost layers | No | Heavy inventory needs a paid conversion |
Choose Your Migration Method
There are three ways to move. The right one depends on how clean your QuickBooks file is and how much history you need.
| Method | Best for | History moved | Cost |
|---|---|---|---|
| Automated conversion tool (JetConvert, Movemybooks, Q2X) | Clean files that want full history | Current and prior year | Free for simple conversions, funded by Xero |
| Fresh start | Messy files, or a clean break | Opening balances only | Free, manual setup |
| Xero Conversion Toolbox (CSV import) | Complex files and accountants | As much as you import | Free, manual work |
JetConvert is Xero's official migration partner in the US. It covers the current year and one prior year of transactions. Most conversions finish within five business days. Movemybooks plays the same role in the UK and Canada. Q2X, listed in the Xero App Store, handles QuickBooks Online and Desktop files for US businesses. Xero covers the cost of simple conversions through these partners.
A fresh start is often the smart choice for a messy file. You enter opening balances from your most recent tax return or balance sheet. You keep the old QuickBooks file for historical reference. You lose nothing that matters, because the old data stays readable.
How to Switch From QuickBooks to Xero in 8 Steps
- Pick a cut-off date. Month end works best. Stop entering new transactions in QuickBooks after that date.
- Reconcile every bank and credit card account. Unreconciled items are the top cause of migration errors. Fix them now, not later.
- Clean the chart of accounts. Xero needs a flat chart. Remove parent accounts and merge duplicates. Archive accounts you no longer use.
- Fix your contacts and open items. Merge duplicate customers and suppliers. Check that open invoices and bills are accurate. Write off anything uncollectible.
- Export a backup of everything. Download your contacts, chart of accounts, and key reports from QuickBooks as CSV files. Keep them even if you use an automated tool.
- Create your Xero organisation and run the conversion. Subscribe to your chosen plan first, then authorise the conversion tool to connect to QuickBooks. The tool maps your accounts to Xero's structure.
- Verify the numbers. Compare the trial balance, aged receivables, aged payables, and bank balances between QuickBooks and Xero. They must match to the cent.
- Reconnect your tools and train your team. Reconnect bank feeds, payment services, and apps. Rebuild bank rules and recurring invoices. Then run both systems in parallel for a week before you cancel QuickBooks.
Gotchas That Catch People Out
- Payroll does not convert. QuickBooks payroll history stays behind. Enter year-to-date pay figures before your next payroll run.
- Multi-currency history is lost. Exchange-rate history does not transfer. Multi-currency businesses should use a paid conversion service.
- Your discount may not apply. Xero's new-customer discount does not apply if a conversion service created your organisation. Subscribe to Xero yourself first, then convert into it.
- Desktop users need an extra step. QuickBooks Desktop files must first move to QuickBooks Online before tools like Q2X can convert them.
- Keep QuickBooks for your records. Tax authorities require you to retain records for years. Do not delete your old file after the switch.
- Allow two to six weeks end to end. The automated transfer takes days. Review, tax code fixes, reconciliation, and team training take longer.
Bottom Line
Switching from QuickBooks to Xero is straightforward when your data is clean. Use an automated conversion tool for a tidy file. Choose a fresh start for a messy one. Reconcile everything first, verify every balance after, and keep your old QuickBooks file for your records. Do that, and the switch is a weekend of checking, not a month of fixing.