Data migration risks – 7 reasons your Xero migration might fail (and how to avoid them)
Considering a Xero Migration? Read this first and learn about data migration risks.
Migrating your accounting system to Xero can be a game-changer, cleaner data, better reporting, cloud access, and automation all in one sleek platform. But here’s the catch: not every Xero migration goes smoothly. In fact, a surprising number of them fail due to avoidable mistakes.
As Xero experts and Xero migration specialists, we’ve seen the good, the bad, and the chaotic. So we’re breaking down the most common data migration risks and what to avoid when migrating data.
1. Migrating bad data
The most common reason for a failed Xero conversion? Dirty data.
- Deleted nominal codes
- Broken revaluation entries
- Unexplained system errors
If your old system is full of inconsistencies, migrating that data into Xero will just carry the problems over. This is where the phrase “garbage in, garbage out” hits hard. A smart migration often starts with data cleansing or even a fresh start.
💡 Expert tip: If your historical data is a mess, consider only bringing across opening balances or using historical reports instead of full transactional detail.
2. Ignoring system limitations
Not everything your old system did can be done the same way in Xero.
Some clients push for a 1:1 match, but that’s not always possible. Trying to replicate outdated or unsupported workflows usually means workarounds that break audit trails or create manual errors.
💡 What Xero experts recommend: Focus on functionality, not replication. Xero is designed differently. Work with a Xero migration specialist to adapt your processes rather than force the old ones.
3. Refusing data consolidation
Some industries, especially retail or inventory-heavy businesses, generate high volumes of daily transactions. Migrating every single one of those into Xero? That’s asking for performance issues and messy reporting.
Data consolidation (e.g., daily summaries instead of individual stock movements) is an effective workaround that maintains financial integrity without bogging down your system.
💡 Bottom line: Don’t skip consolidation. It’s not about cutting corners, it’s about making Xero work smarter.
4. Underestimating the downtime
We get it, you want it done fast. Usually because your old system is expiring. But rushing a migration without a clear plan is a fast track to a migration fail.
Planning is everything.
- Allocate time for testing
- Build in buffer periods
- Don’t schedule your Go-Live the same week as a major VAT return or payroll run
💡 Reminder from the Xero migration pros: A solid timeline is just as important as the software itself.
5. Running systems in parallel
Running both systems side-by-side sounds like a safe backup plan, but it rarely works in practice.
- Double entry work
- Missed or duplicated transactions
- Confused staff
- Delayed go-live
It creates more chaos, not less. Xero migration specialists almost never recommend parallel systems unless it’s for read-only historical access.
💡 Pro move: Choose a hard cutover date and commit. Support your team properly and streamline the transition.
6. DIY migration without the right expertise
Yes, Xero has DIY conversion tools, but they don’t cover edge cases, industry-specific requirements, or deep data issues. If your business has complex accounting needs, inventory, multi-currency, or custom reporting? You need a Xero expert.
💡 Save yourself the future headaches. Work with a certified Xero migration specialist who understands your industry and the nuances of moving to Xero the right way.
7. Not getting stakeholder buy-in
Even the cleanest data migration can fail if your team isn’t prepared. Training, communication, and expectation-setting are critical.
- Make sure your staff understand how things will change
- Involve key users early
- Align on the why, not just the how
💡 Change is hard. Make it smoother by bringing people with you, not dragging them behind.
Migration success starts with the right partner
Migrating to Xero doesn’t have to be a nightmare. With the right planning, the right mindset, and the right team of Xero experts, it can transform your accounting systems and unlock serious efficiencies.
But if you’re not willing to clean your data, accept platform differences, or plan ahead? Even the best tools can’t save the project.
Need help avoiding a migration fail? Get in touch with a trusted Xero migration specialist and let’s make your move a smart one. Avoid the data migration risks.
Do you want to learn more about mistakes to avoid?
Sage 200 to Xero | SAP to Xero | Twinfield to Xero | Xero migration success
