Linking EasyCars to Xero – Getting Started
Table of Contents
- Setup Connection between Easycars and Xero
- Mapping your Xero Chart of Accounts to Easycars
- Synchronising to Xero
- Suggested practices for migrating to a new Accounting Software
1. Setup Connection between Easycars and Xero
2. Mapping your Xero Chart of Accounts to Easycars
- Visit the Settings > Xero > Xero Mapping page
- The page consists of 4 drop-down sections; each section expands down to reveal a list of options you must link to a ledger account from your Xero Chart of Accounts
Note: A red ‘General Defaults’ button exists on the page to pre-fill all of these choices for you, and create an account for each item in your Xero program automatically for you.
It is recommended you use this function unless you are an existing Xero user with an already configured Chart of Accounts that you’d like to make EasyCars work with.
- The ‘Tax Types’ sub-sections will not be pre-filled. Click to expand and select an appropriate ledger account for each itemExample:
- The ‘Tracking Categories’ sub-section will not be pre-filled – however is optional
Tracking categories are used in Xero for seeing how different areas of your business are performing in the reports Xero can produce.
You can link 1 tracking category from Xero, to each ‘Yard’ you have setup in EasyCarsTo do this, check the box to ‘Enable tracking categories’ and choose a pre-created tracking category from your Xero system, OR, if you’d like EasyCars to create it for you, click the ‘Create Default’ button
- Click ‘Save Changes’ to finish your Xero Account Mapping
3. Synchronising to Xero
- Visit the Settings > Xero > Sync Now page
- Select a ‘Date to Sync to’Note: Transactions dated prior to and including this date are sync’d to Xero
- Click the ‘Sync Now’ button
- A summary will appear detailing how many different items were sent to your Xero system and how many failed (for varying reasons)
4. Suggested practices for migrating to a new Accounting Software
In transitioning to a new accounting system, in this case Xero, be it from Jeal’s EasyCash Pro or any other third party software, there are several items you should consider and carry out within your new Xero system, to ensure a seamless transition.
Chart of Accounts
You’ll want to start creating your chart of accounts in Xero, to suit the variety of incomes and expenditures of your business.
You will need to create accounts for everything that existed in your previous software’s Chart of Accounts (excluding any accounts that you do not use anymore and had not used / had no closing balance in the current year).
For every account, you create in Xero’s Chart of Accounts, you’ll want to check your previous system for a closing balance (as at your transition date).
Set the opening balance of an account in Xero, as the closing balance of that same account in your previous system.
(Note: Accounts relating to the Vehicle Stock on Hand and Reconditioning Stock on Hand amounts will be brought across from EasyCars and so need no opening balance to be set)
Historical Creditors / Debtors
You may have owed money or been owed money by customers or suppliers in your previous system. This may have been for vehicles already sold out, expenses, business related purchases or expenditures etc.
You’ll want to set these ‘debts’ in Xero so that you have an outstanding balance to allocate payments to, when payments are made for these historical debts.
As above, for every bank account created in your Xero system, you’ll want to begin Reconciling it against your bank statement on a regular basis.
To do this, you’ll need to:
- Perform a Reconciliation as at the day prior to your transition date
Reconcile all payments/receipts that exist in Xero with transaction dates dated prior to your transition date.
(This includes payments you’ve had to enter in EasyCars to clear the Creditor Outstanding on any vehicles you may have bought and paid for prior to your transition date)
- When setting the ‘Opening Balance’ for this bank account, the value you input will need to be altered in such a way that the closing balance for day prior to your transition date, closes at a value equal to your actual bank statements closing balance for that day.