Migrate to ZohoBooks?

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Migrate to ZohoBooks?

TIL how to migrate from QuickBooks to ZohoBooks.

So why did I do this?  For years I have been providing custom migration services from pretty much any other software to QuickBooks Online.  This year I noticed something different.  Suddenly I was getting requests to migrate FROM QuickBooks Online and most of the requests were to ZohoBooks.

What?!  Why the sudden interest in migrating to ZohoBooks? 

Migrate to ZohoBooks
Migrate to ZohoBooks

Especially from QuickBooks Online.  I suspect it is due to a combination of the rapid price increases by Intuit plus all the changes to the QuickBooks platform  (often without notice and just as often not well tested). If any one has thoughts on this, I love to hear it in the comments.

I don’t really know why the increased interest in ZohoBooks, what I do know is that it seemed like time to take a look at migrating to ZohoBooks.  Since I am an expert at migrating accounting systems – how hard could it be? (Spoiler – not hard at all).

So I created an account on ZohoBooks and started looking around.  I did find quickly the places where information could be migrated, so I just jumped in. 

Migrating to ZohoBooks is like migrating to any other accounting package, first you set up the basics, Chart of Accounts, Customers, Suppliers/Vendors, Item List and opening balances.  Sample import templates are easily found.  

Importing information was straightforward. I really liked how ZohoBooks does a validation and gives a summary report on the state of the file to be imported BEFORE you do the import. This gives you an opportunity to go back to the file and make any corrections.  You can also download the actual error file as well so you can go through all the lines in your import file and make any corrections.

For my test, I chose to upload journal entries.  Mostly because I have a code base that already turns an export from QuickBooks into a file ready to be imported. It was easy enough to customize this and create an import ready journal file specifically for Zoho Books.

I couldn’t find anywhere a limitation on the lines in the import file and I tried some with varying number of lines. All seemed to import fine although bigger files can take some time.  One thing I would have liked to see is a status on how many records have been imported, there’s just a swirling icon that indicates the progress.

Once my import was completed, I compared the Trial Balance with my test data and it all balanced quite nicely.   It is my second day with Zoho, but I was able to create a number of custom reports quite quickly.

I went on to import open Invoices and Bills and setup the GST/HST.  Reconciled the bank, and I was done!

It wasn’t EXACTLY the same and there are something in QBO that I did still like better. I created a chart showing the differences I found between migrating to QBO and migrating to ZohoBooks.

Feature

Zoho

QBO

Winner

Import

Clean, opportunity is given to download any errors and stop the import.

Clunky. If there is an error must screen print the error. No way to pre-check before importing

Zoho

Import line limit

Doesn’t appear to have a limit

Limited to 1000

Zoho

Documentation

Documentation for Zoho leaves a lot to be desired.  Account types were misspelled, and some type were missing in the import documentation.  In some cases, there was no documentation at all for some of the fields.

Very good.  Lots of information and videos available.

QBO

Account name structure

Zoho doesn’t allow subaccounts to share name. All subaccounts have to have a unique name.  Makes it clunky to name accounts.

QBO Allows subaccounts to have the same name.  This is very handy when you are structuring a chart of accounts.

QBO

Interface

Zoho interface was clean and consistent between all modules.  The current file in use was always displayed at the top right-hand side of the screen.

QBO screens do not consistently display the file name you are working on.  When I first started migrations, I inadvertently picked my own file to import a chart of accounts because the import screen doesn’t show the file you are on.

Zoho

Multicurrency

Even though the file was set to multicurrency, I wasn’t able to create a Foreign AP or AR account. All transactions had to be converted to CAD, so not sure how this works in real life.

QBO lets you create multiple AR/AP accounts (actually forces you to create them for each currency).

QBO for now because it just might be I don’t understand completed how Multi-currency works in Zoho.

Customers/Vendors/Suppliers

Can have the same name

Names must be unique between Customer and Vendor/Suppliers. Causes a lot of duplicate entries.

Zoho

    

This was my first shot at migrating to ZohoBooks and I feel like it was a success.  There are a lot of similarities between migrating to ZohoBooks and migrating to QuickBooks Online. Because it was the first one, I had a lot of manual work in excel to get the imports just right.  Once I work through my process the actual migration steps will be very similar to migrating to QuickBooks Online.

Now the next time someone asks me about migrating to ZohoBooks, I can confidently say YES I can do it!

What’s the right accounting software for your small business?

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Pick the right accounting software for your small business

Cloud accounting expert

I get this question a lot, maybe its because I am an accountant/bookkeeper, maybe its because of my IT background, or just people don’t really know.

I don’t think there is any one answer for people it really depends on your needs.  Read on for some tips that may help you decide.

Synoptic Journal

This is a paper based ledger, you may have seen them it is large binder with a page for each month.  This is the ultimate in low tech.  Don’t really see these too much anymore but you can still buy the ledger books. 

Best for – someone who doesn’t want to use a computer. Very inexpensive.

Drawback –  It might be hard to find an accountant to work with a paper based system. It is also easy to make mistakes. It also really only tracks income and expenses so your accountant will have to have a system to track any balance sheet items like equipment, loans etc separately.

Excel

This is typically an computer version of the synoptic journal.  These usually come from smaller businesses who have simple needs.  Think consultant or a small service provider.

Best for – business owners with a simple, low volume business. Because it is excel it is easy to find templates online and easy to add up the numbers.

Drawback – It is excel and this type of accounting method doesn’t scale well if your business gets complicated. While there are more options to track the balance sheet items, typically like a synoptic journal these are tracked separately at tax time.

Desktop Software

Accounting software for the desktop has been around for a very long time.  While most of the accounting software providers are encouraging migrating to the cloud, there is still a large component of businesses who prefer to work on the desktop.  The most common ones are Sage 50 and QuickBooks Desktop but there are a number of ‘free’ or ‘almost free’ options. A few like Sage 50 cloud and AccountEdge are ‘hybrid’ which have a desktop component but ‘sync’ to the cloud.

Best for – Bookkeepers or businesses that have multiple companies and individuals who don’t want to work in the cloud.  Because of the need to roll out updates, the software is more consistent to use and changes to the software can be managed.  As it is on your desktop theoretically it can be used where there is no internet (however some companies require an internet connection to verify licensing).  Many bookkeepers prefer desktop software because of the ability to pay once and use it for multiple companies.

Drawbacks –  Can be challenging to share the software, updates and backups have to be managed by the end user.  The software is ‘tied’ to a specific computer and typically there is a process to setup a new computer.

Accounting tech stack

Cloud Based software

This is the newest advance in accounting methods.  Xero was the first main cloud accounting software (CAS) provider first launching in 2006.  QuickBooks started offering cloud accounting software in the early 2000s and Sage offered an online version in the mid 2010s.  There are other cloud accounting software providers like  Zoho, Wave, Freshbooks, Odoo to name a few but Xero and QuickBooks are the most popular.

Best for – Businesses who want to work in the cloud and be location independent. It is easy to share the software with team members and accountants.  Various apps are available to extend the functionality of the software and reduce the amount of manual data entry.  Backups and updates are managed by the software provider.  The software can be used in any location and isn’t tied to a specific computer.

Drawbacks – each company is setup individually so there can be more cost for the accounting software. There is no control to how often changes are made or features updated, and this can be frustrating to the person using the software.  An internet connection is mandatory to be able to use cloud accounting software.

Summary

So there are a lot of options when deciding the accounting method that works for you. Your method may end up being decided by the accountant or bookkeeper you use.  Just remember regardless of the method, most tax authorities require you to keep a copy of your business receipts for 7 years.  How you do that is outside the scope of this post but watch for another post on ways to  store business document receipts.

Not sure which is the best method for your small business? Reach out and we can help you decide.

Help me pick!

Proudly Canadian

Accounting MD is proudly 100% Canadian.  All service providers are accredited Canadian Financial Professionals. No portion of our work is outsourced outside of Canada. 

6 letters to look for before you hire an accountant or bookkeeper (hint its CPA / CPB).

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What you need to know before you hire an accountant or bookkeeper.

What you need to know before hiring your next accountant

Unlike many other professionals, anyone can call themselves an accountant or bookkeeper. The term accountant is not reserved or in any way restricted. This does not mean that a non-designated accountant is not competent, it only means that they do not have to adhere to the standards of professional accountants.

Only Chartered Professional Accountants (CPA) are recognised in Canada as Professional accountants. CPAs study for many years and are required to pass rigorous examinations before they can use their designations. Additionally, professional accountants are required to keep their knowledge up to date, which is closely monitored by the respective associations. Public accountants must go one step further and attend additional training and all CPAS are required to carry insurance. Every three years, a mandatory practice review is conducted by the associations to ensure the quality of the work performed meets the high standards that you have come to expect.

Looking for a qualified bookkeeper? Then you want a Certified Professional Bookkeeper or CPB. Like CPAs, CPB’s go through an extensive training process before they are recognised as Professional Bookkeepers. Both CPAs and CPBs require annual professional development and carry insurance. Additionally, they are bound to adhere to the standards and Ethical requirements of their respective associations.

Currently market demand for accountant and bookkeepers significantly exceeds the supply. While CPAs and CPB are regulated with what they can say and do, non designated accountant and bookkeepers are not.
With limited barriers to entry for non designated accountants and bookkeepers and high market demand for accounting services it is easy for anyone with any level of experience to start an accounting or bookkeeping company.


As a small business owner there is limited protection for you if you decide to work with someone other than a CPA/CPB.

Please take a look at the links below to find qualfiied accountants and bookkeepers in Canada.

Find a Qualified Bookkeeper

Find a CPB in Canada

Find a CPA