Can I delete all my data in Xero and start again?

17 Oct

Xero is a powerful tool that can take bank reconciliation, invoicing, bookkeeping, payroll and tax reporting off your desk and build the reports you run your business on.

However, over time, errors can slip in and things can start to drift. Your figures don’t match up and your reports look off. You fix one thing and another appears. You can’t quite put your finger on what’s gone wrong and wonder if resetting Xero, deleting all your data and starting again is your best option. It can sound tempting when things go wrong. Wipe Xero, set it up properly and carry on with a clean slate.

However, Xero has no reset button, and you should restart it from scratch only as a last resort. While some bigger problems in Xero might call for that, plenty of others have a much simpler fix. This blog covers what starting again with Xero involves and whether your problem needs it.

Is there a reset button in Xero?

There isn’t an option to remove all your data and ‘reset’ Xero in a single step. Instead, you’ll need to create a new organisation, check its key settings, export four sets of data, clean them up, import each one and move your bank feed across. Your original organisation will stay where it is until you cancel it.

However, if the problem lives in your Xero data, you risk carrying it over into your new organisation.

That’s why Xero says restarting should be your last resort. Your first step should always be to work out and fix what’s wrong. While some problems can be solved only by starting from scratch with a new organisation, plenty can be fixed in the organisation you already have, in a fraction of the time.

So, before you do anything rash, it’s worth getting a Xero expert like Scott, our resident Xero guru here at Progression Accountancy, to look through your Xero account and diagnose the cause of any problems you’re experiencing. Depending on what the issue is, he may be able to fix things without you having to nuke your existing Xero setup and start again.

Why you might want to start again

There are many reasons why you might feel you need to start over in Xero. While some might need a restart, there may be other solutions to your issues that don’t require such drastic action. Here are a few of the most common issues we see:

The base currency is wrong. Once you’ve set your organisation up, you can’t change its base currency. If you picked the wrong one, creating a new organisation is the only way forward.
The setup was rushed. Maybe you set up Xero yourself, accepted the default settings and cracked on with running your business. Then, months later, you find the key settings don’t match how your business works, which throws off everything that’s built on top of them.
A poorly-executed migration. Data imported from another accounting system can leave you with balances and history that don’t match your current figures.
Years of clutter. Duplicate contacts, a bloated chart of accounts and years of using workarounds, shortcuts or quick fixes to save time can build up over time and really mess up your data. Exporting, correcting and re-importing it can help clean things up.
Bank feed and statement issues. Duplicate transactions, statements imported into the wrong account and items matched to the wrong things can leave your bank reconciliation in a mess. Often, you can fix these issues without having to start over.

The real question is whether your problem sits in your Xero’s foundations or in the data that sits on top of them. If it’s the former, you might need a reset. If it’s a problem with your data, you might just need a Xero clean-up to fix things for good.

What to try before you restart

As we mentioned earlier, resetting Xero and starting afresh with a new organisation should always be your last resort.

Before you do anything, we’d recommend you consider the following:

Delete or void invoices, bills or credit notes

If your problem comes from wrong or duplicate invoices, bills or credit notes, you can delete or void them one at a time. Xero has a how-to guide for each (you’ll find the links here). Duplicate invoices can throw off your reports, yet they’re easy to fix. Once you’ve dealt with the affected documents, you can re-run the reports that flagged the problem and check that everything reads correctly.

Delete duplicates or unreconcile mismatched bank lines

Duplicates tend to appear when a transaction is entered manually and then again when your bank feed pulls it through. You can delete the transaction or unreconcile one that’s been matched to the wrong thing and match it again. But you should always work out which one is the real transaction first. Keep the entry that matches your bank statement and delete or unreconcile the other.

Delete or move incorrect statements

If you’ve imported the wrong file or put it into the wrong bank account, you can delete imported statements and individual statement lines. You can also move imported statements to another bank account or organisation in Xero. If a statement landed in the wrong place, moving it saves you deleting and re-importing it.

Changing the base currency

Unfortunately, Xero can’t change the base currency of an existing organisation. You’ll need to create a new one with the correct currency, then follow the steps in the next section.

How to start again in Xero

If you’ve been through the above checks and still need to restart Xero, here’s the process Xero recommends. It can be a very big job that’s prone to errors, so if you’re unsure what to do, get in touch straight away and Scott can guide you through it:

Add your new organisation first. Do this before you cancel the original. During setup, check the new organisation’s key settings, because everything else will be built on them.
Export the data from your original organisation. You’ll need to export your chart of accounts, contacts, invoices and bills, and the bank reconciliation summary report. If you have things like bank rules, repeat invoices and fixed assets set up in Xero, note them down, as you’ll also need to rebuild whatever the exports don’t carry across.
Correct the exported files. Next, you should clean up and fix any mistakes in your data and save the changes in the exported files before they go back into Xero.
Import each file into the new organisation. Xero has an import guide for each one, so follow it as you go.
Transfer your direct bank feed. If you have a direct bank feed, you can transfer the feeds into your new organisation.
Cancel the original subscription (if applicable). Once you’re sure you’ve got everything you need in your new organisation and it’s all working correctly, you can cancel the original subscription.

Setting up the new organisation properly

Restarting Xero from scratch gives you a second go at building its foundations properly.

The aim is to create a Xero account that’s up to date, set up correctly and easy to run.

After each import, you should check the new organisation against the original. Look at your contacts, account codes and the bank reconciliation summary to make sure everything marries up. You should also check each setting against how your business operates now.

After you’ve transferred your bank feed, check that new transactions are arriving in the right account. You should also keep the original organisation until you’re sure everything’s in place and you have everything you need, because once you delete it, it’s gone.

Once you’re up and running with your new organisation, keep it tidy. Agree a naming convention for new contacts, reconcile regularly and give one person responsibility for maintaining your chart of accounts, instead of letting multiple people jump in and make changes.

Following these simple steps will help you keep your new Xero setup clean for longer than the old one was.

How can Progression Accountancy help?

If your Xero isn’t behaving like it should, whether it’s throwing up strange numbers or something doesn’t feel quite right, a full reset isn’t always the answer. If the problem lies in your data, it can probably be fixed, but if it’s in the foundations, a restart might be your only option.

If you don’t know which way to go, talk it through with us before you do something you can’t unpick later. Scott is a Xero Gold Partner with vast experience in helping businesses of all sizes, across the UK, get to grips with Xero. He’s worked in Xero since 2011 and has seen most of the ways it can get into a state and, crucially, how to fix things. He’ll tell you whether yours needs fixing or rebuilding and why, and walk you through what to do next.

So, if you’re struggling with your current Xero setup and thinking of starting afresh, get in touch to learn how we can help.