Announcement video from Grant Sutton (Poolwerx CFO)
Why is the Chart of Accounts (COA) changing?
As part of your onboarding to the Evolution Platform, you will migrate from Netsuite to Xero. We would like to take this opportunity to mention a few key points ahead of your migration.
The decision to move the financial and HR system to Xero was thoroughly considered, both with the understanding that there would likely be more experience and knowledge of this popular business software, but more so, that it fits and integrates well within the Evolution Platform alongside Vital and Lightspeed.
This change provides us with an opportunity to clean up the complexities within the financials that have built up over the last few years, where over 1,300 GL accounts exist within the current Chart of Accounts.
In developing the new COA, we provided a handful of Franchise Partners and their accountants the opportunity to provide feedback on the proposed structure, all of which was considered ahead of the final version.
The goal of the new COA is to simplify, standardise, and provide consistency of reporting across the franchise community. Consistency of reporting allows us to provide more accurate benchmarking of brand performance metrics which assists in promoting Poolwerx to institutional lenders, potential franchise purchasers and for use in our franchise disclosure documents. These benefits provide additional value to your business as we look to promote and grow our network.
What’s changing?
The structure of the Xero COA is similar to what you’re used to in Netsuite with a few key changes:
Removed duplicate and unused GL accounts;
Removed Franchisor specific GL accounts that aren’t relevant for Franchise Partners;
Standardised the bank account GL codes (importantly, you can still name these accounts however you need);
Simplified and categorised the account codes in a more logical manner to make it easier to navigate;
Renamed GL account names to better align with Poolwerx terminology and consistent naming conventions.
How will the migration work?
We will set up your Xero account with the new COA so it’s ready to use on day one. You can find a copy of the chart here and you can find details of the Xero COA components here. You will notice the bank accounts are excluded in the COA overview document. Your bank accounts will be added as you migrate your trial balance, with each bank account being set up in conjunction with your specific bank account feeds. You will have the opportunity to name these GL accounts so that they are familiar to your business.
Ahead of your business migration, the Evolution team will provide you with a mapping document showing the GL accounts and balances that have been mapped to Xero. This will be conducted within a 2-day period, after which, you will be given the opportunity to review and provide comments for any queries you may have. See a sample mapping document of what to expect.
To support you as you transition to Xero, and to assist with standardised reporting, we have established an agreement with Liston Newton who is available as an option to provide professional outsourced accounting services that suit your business needs. This can range from light touch support to a full-service function across your business. If you would like to take up these services, please contact Andrew Phelan at Liston Newton – andrew.phelan@listonnewton.com.au.
What if I already use Xero for my business financials?
You will need to have your existing Chart of Accounts changed at least 2 weeks prior to your Go Live target date.
Click here for Poolwerx Master COA. All remaining accounts in Xero will need to be archived.
You can have your accountant update it for you or we can provide you with our Xero partner who can complete this for a fee.
If you're based in NZ or USA and currently use Xero for payroll only, we will update your Chart of Accounts as part of the migration at no cost.
If you have any questions during the migration to Xero, please submit a ticket here.