VANUATU: Xero in Vanuatu – Understanding migration

In our previous article on the benefits of Xero for small and medium-sized businesses in Fiji, we talked about “migrating” your financial records. We asked BLP’s qualified business advisors in Vanuatu what this means and how it is achieved.

Migrating is simply transferring all your business financial data onto a new system. John Warmington from The Bottom Line (TBL) had this to say: “The success of Xero is dependent on the quality of the conversion at the beginning – garbage in, garbage out. We often see people who have switched, but the change from the old accounting system has not been done well, so the financial information is not reliable and is actually incorrect.”

And that’s why getting the right advice right at the start is important. John fully acknowledges he’s not the person to do this, so he refers clients to a specialised outside organisation which only does migrations, and then TBL takes over for day-to-day financial management and period-end reporting. “Migration must be done by someone who can identify what the problems are and do it right.”

We contacted AJC, a chartered accounting firm in Vanuatu that was one of the first to adopt the system in 2017 for their clients and as their own accounting system. AJC has since helped streamline migration to Xero for many clients.

Marie-Eve Chabot, Managing Director of AJC, notes, “In Vanuatu, where small and medium-sized enterprises (SMEs) are vital to the economy, the shift to digital accounting is pivotal. Xero’s cloud-based accounting software offers a streamlined solution, simplifying financial management for Vanuatu businesses.”

Like John, Marie-Eve believes being guided by knowledgeable Xero advisors is the key to a successful migration. It involves three manageable steps: preparation of financial data, conversion to Xero’s platform, and comprehensive training. This demystification of the migration process should reassure SMEs that the shift is feasible and beneficial.

Financial advisors in Vanuatu state the strongest motivation to move clients to Xero is to mitigate the disaster-prone environment in which they operate. Cloud-based systems allow business owners to access their financial data from anywhere. And with the improved stability and reliability of the internet in Vanuatu, this is an even more valid consideration.

AJC note other key benefits include:

• real-time insights into the financial position of the business, meaning decisions can be made quickly using up-to-date and reliable information.
• automation of bank feeds and invoicing increases efficiency, reducing costs.
• the intuitive interface makes it accessible to users with limited accounting knowledge.
• Xero ensures adherence to financial regulations and offers robust security for financial data.

Marie Eve concludes, “For Vanuatu’s SMEs, adopting Xero is more than an upgrade in accounting practices; it’s a step towards embracing digital efficiency. The support from Xero advisors facilitates a smooth transition, positioning Xero as an invaluable tool for business growth and modernisation.”

If you are considering an upgrade to protect your business from disruption or are looking to improve your financial processes, BLP can help. We can put you in touch with a local business advisor who can take your financial records – in whatever shape they are in – put them in order, and accurately record those details in Xero, so your starting point is exactly the position you were in previously.

Once your records are stored safely in Xero, your advisor will provide as much training and advice as necessary to get you up and running and at the end of every year (or every quarter, month or even week or day), you can see exactly what has happened in that period. As time passes, you will build up a reliable picture of how this period compares to other periods, enabling better decision-making to grow your business.

To catch up on our earlier article, follow this link: https://about.businesslinkpacific.com/xero-in-fiji-embracing-change-enhancing-business/

To find a BLP-approved advisor able to help you migrate to Xero in your country, visit https://businesslinkpacific.com/search