Migrating from Xero to ReAI

Switching accounting software is something most business owners dread. The fear of losing data, disrupting workflows or making errors during the transition is real. But migrating from Xero to ReAI does not have to be painful if you plan properly and follow a structured approach.

This guide walks through the process from start to finish.

Why businesses switch

There are several common reasons UK businesses move away from Xero:

• Cost – Xero’s pricing has increased significantly, especially for businesses needing multi-currency, payroll or project tracking
• Feature gaps – specific functionality that Xero does not offer or charges extra for
• Complexity – some businesses find Xero more complex than they need
• Support – wanting more responsive or accessible customer support
• Integration needs – better connections with other tools they use

For a detailed comparison of features and pricing, see our ReAI vs Xero comparison.

Planning your migration

Choose your migration date

Pick a date that aligns with a natural break in your accounting cycle:

The start of your financial year is the ideal time because you can process the entire previous year in Xero and start fresh in ReAI. However, any month-end works.

Gather your data from Xero

Before you start, export everything you need from Xero:

• Chart of accounts (Settings > Chart of Accounts > Export)
• Trial balance as at your migration date
• Contact list (customers and suppliers)
• Outstanding invoices – both accounts receivable and accounts payable
• Bank transactions (for reconciliation reference)
• Fixed asset register (if applicable)
• VAT return history
• Payroll data (if using Xero Payroll)

Export data in CSV format where possible – this is the most universally compatible format for importing into other systems.

Setting up ReAI

Chart of accounts

Your chart of accounts is the backbone of your accounting system. You have two options:

Option 1: Mirror your Xero chart of accounts Import your existing account structure into ReAI. This is the quickest approach and means your historical reports are directly comparable.

Option 2: Start fresh with ReAI’s default chart of accounts Use ReAI’s standard UK chart of accounts and map your Xero accounts to the new structure. This is an opportunity to clean up accounts you no longer need, merge duplicates and simplify your reporting.

For most businesses, mirroring the existing structure and making minor adjustments is the most practical approach.

VAT settings

Configure your VAT settings in ReAI:

• VAT registration number
• VAT scheme (standard, flat rate, cash accounting)
• MTD connection – connect ReAI to HMRC for Making Tax Digital
• VAT return periods – quarterly, monthly or annual

Make sure your VAT codes in ReAI match those you used in Xero. Inconsistencies here will cause problems on your VAT returns.

Bank feeds

Set up bank feeds in ReAI for all your business bank accounts. This is usually a direct connection through Open Banking, which takes a few minutes per account. Your bank transactions will start flowing into ReAI immediately.

Migrating your data

Opening balances

The most critical step. You need to enter opening balances in ReAI as at your migration date. These come from your Xero trial balance and represent the starting point for your new system.

Your opening balances must include:

Critical check: Your opening balance journal must balance – total debits must equal total credits.

Outstanding invoices

Import your unpaid customer invoices and unpaid supplier invoices so you can track what is owed and what you owe from day one:

1. Export open invoices from Xero
2. Import into ReAI (matching to the correct customer/supplier records)
3. Verify that the total accounts receivable and accounts payable match your opening balance figures

When payments come in for these invoices, they will be allocated correctly in ReAI.

Contacts

Import your customer and supplier list from Xero. Ensure key details are carried across:

• Business name and contact name
• Email address and phone number
• Billing and shipping addresses
• VAT registration number (for VAT-registered suppliers)
• Default payment terms
• Default VAT code

Fixed assets

If you have a fixed asset register in Xero, recreate it in ReAI:

• Asset description and category
• Purchase date and cost
• Depreciation method and rate
• Accumulated depreciation to date
• Net book value as at migration date

Parallel running

For the first month after migration, consider running both systems in parallel:

1. Enter transactions in ReAI as your primary system
2. Spot-check against Xero to verify that key figures match
3. Reconcile bank accounts in ReAI and compare to Xero
4. Run your first VAT return from ReAI and compare the figures to what Xero would have produced

Parallel running gives you confidence that ReAI is set up correctly before you fully commit. One month is usually sufficient.

Filing your first VAT return from ReAI

Before filing, verify:

• Output VAT total matches your sales records
• Input VAT total matches your purchase records
• Net VAT figure looks reasonable compared to previous periods
• Box totals on the VAT return match your expectations
• Your MTD connection to HMRC is working

File a test return (if available) or review carefully before submitting. The first return from a new system is the one most likely to contain setup errors.

What to watch out for

Common migration mistakes

Historical data

ReAI will not have your historical data from Xero unless you import it. For most businesses, carrying over opening balances and open invoices is sufficient. Historical transaction detail (for reference) can be kept as exported CSV files or PDF reports from Xero.

If you need historical data accessible within ReAI (for comparison reporting), you can import historical journals, but this is only necessary for businesses that require multi-year trend analysis within the new system.

After migration

Once you are confident ReAI is working correctly:

1. Cancel your Xero subscription (but keep your data exports)
2. Archive your Xero data – download a full backup before you close the account, as you need records for 6 years
3. Update your accountant – give them access to ReAI and confirm they are comfortable with the new system
4. Train your team – anyone who used Xero needs to learn the ReAI equivalents
5. Review after one month – check that bank reconciliation is clean, VAT figures are correct and all workflows are functioning

Getting help

If you are unsure about any part of the migration, consider:

• ReAI onboarding support – the ReAI team can help with setup, data import and configuration
• Your accountant – they should review the opening balances and first-period accounts
• A bookkeeper familiar with both systems – can handle the practical data migration work

The investment of a few hours in getting the migration right saves months of correcting errors later. Most businesses complete the switch in 1-2 weeks of active work, with a month of parallel running for confidence.