Key takeaways
What this article covers, in order:
- The difference that follows you
- Before you switch: pick the right cut-over date
- Step 1: Reconcile the old system to the cut-over date
- Step 2: Export the reports that prove where you stood
- Step 3: Work out the opening bank balance properly
- Step 4: Re-enter open invoices and bills individually
When switching accounting software, you keep your reconciliation history by doing three things: reconcile the old system right up to a clean cut-over date, export the reports that prove it, and start the new system with an opening bank balance that includes your outstanding items. Get those right and your first reconciliation in the new software balances on day one. Skip them and you'll be chasing a mystery difference for months.
The difference that follows you
Aisha runs a physio clinic in Adelaide (she's a made-up example). She moved software in a hurry one Friday afternoon, typed in the bank balance from her online banking, and started fresh on Monday.
Three weeks later her first reconciliation was out by $854.50. It took her bookkeeper most of a day to work out why: an unpresented cheque to a supplier and a deposit that had been recorded but hadn't cleared. Both had been sitting quietly as outstanding items in the old system. The bank balance she typed in didn't know about either.
The fix took a day. Avoiding it would have taken ten minutes.
Before you switch: pick the right cut-over date
The cut-over date is the last day in the old system. Everything after it happens in the new one.
Good cut-over dates:
- The end of a month, always. Never mid-month.
- The end of a quarter, such as 31 Dec 2026 or 31 Mar 2027, if you can wait. It lines up with the periods your BAS agent or accountant is already working with.
- 30 Jun 2027, the end of FY2026-27, is the cleanest of all, because the new system starts with a full financial year. The downside is that it's also the busiest time for your accountant.
Whatever you pick, tell your accountant or BAS agent before you start. They may have a preference.
Step 1: Reconcile the old system to the cut-over date
Every bank account, credit card and loan account in the old system needs to be reconciled to its statement as at the cut-over date. Not "mostly". Fully.
At the same time:
- Enter every invoice, bill and credit note dated on or before the cut-over date.
- Apply every payment received and made.
- Clear or explain anything sitting in suspense or clearing accounts.
If the old books aren't clean, the new ones won't be either. Moving software doesn't fix bad data; it copies it.
Step 2: Export the reports that prove where you stood
Run these from the old system as at the cut-over date and save them as PDF (and CSV where you can):
| Report | Why you need it |
|---|---|
| Trial balance | Your opening balances for every account |
| Bank reconciliation report, each account | The proof that the bank balance was right, plus the outstanding items |
| Aged receivables (detail) | Every unpaid customer invoice to re-enter |
| Aged payables (detail) | Every unpaid supplier bill to re-enter |
| Balance sheet and P&L for the year to date | A check for your accountant, and your history |
| General ledger for the year to date | The detail behind everything, in case questions come up later |
Also check what happens to your access in the old system after you cancel. Read-only or archive access varies by provider and plan, so ask before you cancel, not after. Keep the exports somewhere that isn't the old software either way.
Step 3: Work out the opening bank balance properly
This is the step Aisha skipped. Your opening bank balance in the new system is the ledger balance (your books), not the balance on the bank statement. The difference between the two is your outstanding items.
Here's Aisha's position at 30 Sep 2026, from her old system's reconciliation report:
| Line | Amount |
|---|---|
| Balance per bank statement | $24,615.80 |
| Less: unpresented cheque no. 1043 (supplier) | −$1,240.00 |
| Add: deposit recorded, not yet cleared | +$385.50 |
| Balance per books (ledger) | $23,761.30 |
Check: $24,615.80 − $1,240.00 + $385.50 = $23,761.30. The net of the two outstanding items is $854.50, which is exactly the difference she spent a day chasing.
In the new system:
- The bank account's opening balance is $23,761.30.
- The cheque for $1,240.00 and the deposit of $385.50 are entered as individual transactions dated on or before 30 Sep 2026, so they appear as outstanding items.
- When they clear the bank in Oct 2026, they match off in the first reconciliation.
Step 4: Re-enter open invoices and bills individually
Don't enter receivables as one lump balance. Enter each unpaid invoice with its original number, date and amount. Same for bills. Otherwise, when a customer pays invoice 2187, there's nothing to match their payment against, and your aged receivables report starts life wrong.
The total of the invoices you enter should equal the receivables balance on your trial balance. Same for payables. If they don't, stop and find out why before going further.
Step 5: Do the first reconciliation in the new system straight away
Don't wait for month-end. As soon as the first week of transactions is in, reconcile. Your statement's opening balance should be $24,615.80; your new books should start at $23,761.30 with $854.50 of net outstanding items explaining the gap. If that works, everything after it will too.
A switching checklist
- [ ] Cut-over date agreed with your accountant or BAS agent
- [ ] Every account reconciled in the old system to that date
- [ ] Reports exported and saved outside the old system
- [ ] Old system access after cancellation confirmed
- [ ] Opening balances entered from the trial balance
- [ ] Outstanding bank items entered individually
- [ ] Open invoices and bills entered individually; totals match the trial balance
- [ ] First reconciliation in the new system balances
- [ ] Bank feed or CSV import running in the new system
Be honest about what you're giving up
Before you move, check that the new software covers what you actually use. Payroll is the big one. As of Oct 2026, MYOB's Australian pricing page lists payroll as included in MYOB Business AccountRight Plus, and Xero's Australian pricing page lists payroll for 2, 5 or 10 people depending on the plan. HelloBooks doesn't run payroll, so if that's essential to you, either keep a separate payroll tool or stay where you are. That's a fair trade-off for some businesses and a deal-breaker for others. QuickBooks' Australian pricing page, as of Oct 2026, lists automated bank feeds and transaction auto-matching across all four of its plans, so if your main reason to move is bank reconciliation alone, compare carefully before switching.
How HelloBooks helps
We move your books for you. If you're coming from QuickBooks, there's a done-for-you QuickBooks migration service from US$199, which runs via file import in Australia. If you're coming from MYOB or Xero, talk to us about what's involved before you pick a cut-over date.
Once you're in, connect your bank account (most Australian banks and cards are supported) or import a CSV statement. The reconcile screen lines your statement up against your ledger, with an AI match suggestion on each line, a confidence score and why it picked that match, so your outstanding items match off as they clear. Each reconciliation report shows opening balance, cleared items, outstanding items and closing balance, and exports as PDF or CSV. Lock each period once it's signed off.
Your bookkeeper, BAS agent or accountant can be invited into the same books. Compare HelloBooks as a Xero alternative or a QuickBooks alternative.
FAQs
What's the best time of year to switch accounting software?
The end of a month at minimum, and ideally the end of a quarter or 30 Jun 2027. Check with your accountant, because the end of the financial year is their busiest time.
Do I need to bring all my old transactions across?
Usually not. Bring opening balances, open invoices and bills, and outstanding bank items. Keep the old reports for history.
Why doesn't my first reconciliation balance after switching?
Almost always because the opening bank balance was taken from the bank statement instead of the books, and the outstanding items were left out.
Should I cancel the old software straight away?
Not until you've exported every report and confirmed what access you'll have afterwards. Many businesses keep the old subscription for a month or two as a safety net.
Can my bookkeeper do the switch for me?
Yes, and for anything with payroll history, multiple accounts or messy old books, it's often worth paying them to.
Reconcile the old books to the last cent, and the new ones start right.
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