Please understand that it is impossible to make an exact copy of your data in a different accounting system. There will be some information that we can’t convert and some information will look different when converted. Despite this, in most cases, the balances in the Trial Balance report should match between the source system and Sage.
TABLE OF CONTENTS
- Foreign Currency
- General
- Workarounds
- Things you may need to tidy post-conversion
Foreign Currency
We mention foreign currency in our limitations pages so this page will provide further details on how we approach foreign currency conversions. This page includes information relevant for conversions to all destination systems.
Important information
From QuickBooks (Desktop or Online) and Freeagent
Factors specific to QuickBooks (Desktop and Online) and FreeAgent mean that conversions where foreign currency is detected or those containing non-home currency transactions from these systems are unlikely to complete accurately.
We will not investigate or fix any aspect of these conversions, even if seemingly unrelated to foreign currency.
The only options regarding unsuccessful foreign currency conversions from QuickBooks (Desktop or Online) or FreeAgent, will be to accept them complete with differences, or abandon the conversion. We do not recommend reconverting a second time as this is likely to give the same results.
From Sage, KashFlow or Xero
We will do our best to investigate and resolve any differences with these conversions although this isn’t always possible.
For more information refer to our foreign currency page.
General
Causes of Complications
We never know exactly what the results of a conversion will be ahead of performing it. The information below is a guide for things that are likely to cause complications. Whether these complications will cause differences, unusual looking transactions, or prevent the conversion from completing we can’t yet say but it’s best to be aware of them in advance.
Volumes
Please be aware that it may cause complications (we’re unable to fix) with your conversion if your source software contains in excess of any of the following in the conversion period:
40,000 combined invoices, bills and credits
40,000 bank transactions
2,500 credit notes allocated to invoices
10,000 contacts
600 chart of account codes
100 or more departments/classes
Converting from QuickBooks
If you’re converting from QuickBooks Online and recharge transactions, then not all line items may be included when converting.
QuickBooks and QuickBooks Online allow for bills to be paid from suppliers other than those named on the bill itself. When converting to other systems, this is not supported and will result in differences we’re unable to fix.
Also note that due to a limitation with QuickBooks Online, transactions using a Product/Service Stock Asset may not be converted with the correct account code.
Converting from Sage
If there are journals manually entered in Sage Desktop that have the same “Ledger year end” description as the system journals, we aren’t able to convert these. Differences will be displayed once the conversion is completed and you may complete the Fix It For Me form but adjusting for these isn’t included in our service unless extremely simple.
Converting from FreeAgent
Corporation Tax
FreeAgent automatically creates entries for corporation tax that aren’t provided to us by FreeAgent. We’re investigating options to improve this but currently corporation tax is unlikely to be converted correctly.
Smart User Payments
If smart user payments are used, FreeAgent, doesn’t provide us with the split between the salary, expense and dividend. This is likely to result in differences in the conversion that we’re not able to resolve.
For more information, please see FreeAgent’s smart user payment blog.
Flat Rate or non-VAT/tax registered
FreeAgent allows tax transactions to be entered in non-tax registered companies. It also posts the gross transaction value to P&L accounts for purchase transactions with tax under the flat rate scheme.
In both scenarios, while FreeAgent correctly ignores the tax for accounting purposes, the information provided to us from FreeAgent does not. This means we’re unable to accurately convert the journals.
These transactions will be recognised by our system as taxable transactions and the tax will be posted to the tax account. This will cause differences that we’re not able to resolve.
Stock
When selling stock items in FreeAgent, the cost price is calculated by FreeAgent using the FIFO (first-in first-out) principle. This calculated cost is then adjusted for in the balance sheet and Profit and Loss. FreeAgent does not provide us with details of the adjustment. As a result, stock is unlikely to be correct in the destination system.
For more information, please see FreeAgent’s blog on stock valuation.
Foreign Currency
Factors specific to FreeAgent mean that conversions where foreign currency is detected or those containing non-home currency transactions are unlikely to complete accurately.
We will not investigate or fix any aspect of these conversions, even if seemingly unrelated to foreign currency.
The only options regarding unsuccessful foreign currency conversions from FreeAgent will be to accept them complete with differences, or abandon the conversion. We do not recommend reconverting a second time as this is likely to give the same results.
FreeAgent Trial Balance report
The Trial Balance in FreeAgent doesn’t include previous financial years (unless the report dates are set to include all previous years). This includes the Balance Sheet accounts.
When comparing FreeAgent Balance Sheet accounts to your destination software, set the FreeAgent Trial Balance report to include all dates. When comaring the Profit & Loss report do not select to include previous financial years.
Data converted via transactional view
In FreeAgent, the same transactions can display with different dates or tax rates in the transactional view compared to the report view.
Data will be converted per the FreeAgent transactional view and not the report view. This “transactional view” data is the only data available to us.
As a result of this, your account balances may be different when comparing between FreeAgent and your destination software.
Capital Asset Handling
FreeAgent uses different accounts for the Capital Asset, additions, disposals, and depreciation. At the end of an accounting year, FreeAgent then ‘rolls up’ these sub-accounts into its parent. It does this “behind the scenes”, without any transaction for us to replicate. This will result in the Capital Asset accounts being correct, but may show different balances.
This can be checked by summing a single Capital Asset account and sub-accounts in FreeAgent and your destination software. The balances should be the same.
For more information, please see FreeAgent’s blog on handling capital assets
Dividend accounts
At the end of your financial year FreeAgent transfers the balance on the dividend accounts to the Profit and Loss account. It does this “behind the scenes”, without any transaction for us to replicate. This may result in dividend accounts showing different balances to the source system.
Non-VAT Enabled Source
If you are non-VAT enabled in FreeAgent, you are still able to enter VAT transactions. If you are non-VAT enabled and have entered VAT on transactions, your destination company will need to be VAT enabled and we will bring across the VAT on the transactions and post them to the VAT account.
What data will be converted?
We will transfer the following data to Sage Accounting:
Customer Details
Supplier Details
Chart of accounts
Account balances
Customer balances
Supplier balances
All individual transactions in the conversion period
Best attempts will be made for matching fields between software systems when converting to Sage Accounting. Some source fields will not be converted where Sage Accounting does not provide a means to do so.
It’s not possible for Movemybooks to provide custom mappings for any fields.
What data won't be converted?
We only convert the core accounting information and not the following types of data:
Sage archives or backup data that isn’t “open” or “live” (if converting from Sage 50)
Classes/Locations
Budgets
Project/Departments information*
Stock/Inventory Items
Product/Sales Items
Job costing
Sub-account structure of the chart of accounts
Fixed Asset Registers
Sales and Purchase Orders
Bank statements
Quotes/Estimates/Draft/Unposted invoices or bills
Repeating/Memorised Transactions
Default nominal codes, payment terms or tax rates
Custom VAT/tax rates (see workarounds used)
Templates such as invoice templates
Timesheets/Time Records
Payroll and Employee Records
Accounts that have never had any transactions
Transactions after the “Convert To” date
Deleted or cancelled transactions
Nil value invoice line items
File attachments
CIS details
Charity fund codes
Custom fields (invoices/bill/contacts)
*If the option to convert departments is not displayed on the Conversion Setup page, then no department data will be transferred.
Workarounds
Transaction types we can't convert
There are certain transaction types that Sage Accounting does not allow us to convert. We try to create transactions in Sage Accounting that match as closely as possible the transactions in the original software, although sometimes we have to use a different transaction type.
One example is Xero’s prepayment transaction type.
It’s not possible for us to represent Xero prepayments in the same way they are in Xero.
We’re planning some improvements to this, but in the meantime, you are likely to see differences between Xero and Sage for the duration a prepayment remains unallocated. Allocating the prepayment does correct the balances from the date the allocation is made.
PayPal, Bank and Credit Card Accounts
PayPal accounts can only be converted as Sage Accounting Bank Accounts.
VAT/Tax
Some VAT/tax transactions including those with custom tax rates, EC VAT, reverse charges or unusual tax transactions will be converted as closely as possible but are likely to be different. We may use a standard rate of tax or No Tax and then add an adjustment to correct the tax amount if necessary. This could result in some boxes in tax returns being incorrect even if the Balance Sheet amount to be paid or refunded is correct.
System tax accounts are merged to become a single tax account.
For more information please refer to our post-conversion tasks page and also the Tax Returns Don’t Agree page.
Depending on the system you’re converting from and the transactions present, the conversion may result in some rounding differences due to the way tax or line amount totals are calculated differently between systems.
FreeAgent allows non-VAT registered companies to enter bank payments with VAT.
For conversions from FreeAgent, we apply the current VAT registration status of the company to all transactions. If the VAT registration status of the company has changed this is likely to cause differences.
Accounts Receivable and Payable
If you have multiple Accounts Receivable or Accounts Payable accounts in your QuickBooks desktop chart of accounts then these will be merged into one single Accounts Receivable and Accounts Payable account in Sage Accounting.
Rounding / Decimal Places
Transactions with unit price to more than two decimal places will be rounded to two decimal places.
Transactions with a quantity containing decimal places will be changed to “1” and the unit price changed to reflect the correct line item value.
Payroll
Payroll and employee records are mentioned in the “What data won’t be converted?” as information we can’t convert. We do try our best to convert the accounting transactions although this isn’t always possible.
If converting from FreeAgent and the Employment Allowance is claimed then associated adjustments or transactions are likely to be aggregated into E’ers NIC. The overall balance in relation to payroll will be correct but individual payroll and NIC accounts may not be correct.
Things you may need to tidy post-conversion
Set your VAT/Tax number and details
We do not set your tax number and return periods. This is something that you will want to correct before completing your next tax return.
Go to Settings > Financial Settings > Accounting Dates & Tax
You can now set your tax details as required
Check the VAT/Tax Codes for each of your chart of accounts items
Our software tries to work out what the VAT/tax codes for each account should be, based on the transactions posted to that account in your data, but you should check and amend them if needed before working in your new Sage Accounting company.
File the most recent VAT/tax period you’ve already submitted
Once this is completed, Sage will be able to recognise any future transactions entered that are dated back into historical tax period as “late” claims. These should then automatically be included in the next tax return.
Click the Reports menu and select Tax Return. If asked to authenticate for MTD choose not to do this. You will be able to do this at a later date once you’ve indicated to Sage that the a return has already been submitted
Pick the date for the most recently submitted tax return. Calculate the Return to show the appropriate details.
Sage Accounting will display if there’s any transactions prior to the calculated tax return that haven’t already been included in a tax return. Choose “Now – Include them on this return.”.
Now, choose Submit by other means and then click Save.
If the payment for this return period has already been made within the conversion period then it will already have been converted. You will then need to leave this tax return unpaid in Sage Accounting so as not to duplicate payments.
If the return has not already been paid in the conversion period you will be able to apply the payment without creating any duplicate. You may need to leave the return partially unpaid or enter a separate transaction to record any payment over the return amount.
You can then authenticate for MTD from the bottom of the Settings > Financial Settings > Accounting rates and VAT page
Note also that when preparing your first tax return in Sage Accounting, it won’t include any unfiled “late” claims relating to prior periods and may be incorrect if we’d had to use some workarounds. We recommend you carefully check the figures in this first tax return. If the figures provided by Sage Accounting are different to those you need to file, you may need to submit an adjusted tax return. This should only affect tax returns yet to be submitted that contain converted transactions. Subsequent tax returns should not require any manual adjustments. To read more about why tax returns may be different for the same period in the old and new software please click here.
Miscellaneous
Change business address and telephone number
Enter/amend Record and Transactions Settings
Assign an appropriate new name and nominal code to control accounts 10000001 – 10000012
Edit the category for bank account in the chart of accounts
