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• # 120292
• Tue 02 Nov 2021 06:26 PM

My client has 3 blocks of commercial premises. Each block has its own separate bank account.

He  started using Xero  to raise Sales Invoices for 1 block  from June 21. He has raised various Sales invoices and have allocated them against

receipts in the bank.

He has not posted any Conversion Balance at 31st May 21. Now he suggested  that since the year end is 30th September 21 he will  

be giving me closing balances as at 30th September 21 for 2 blocks of premises.

How does this work? Usually I would have input the Conversion Balances at 31st May 21.

I will appreciate if someone can shed some light on what is the best way to deal with this.

• Zaheda Jugoo

  www.easyfiguresbookkeeping.co.uk

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• # 120434
• Mon 29 Nov 2021 12:16 PM

Hi Zaheda,

If he started using Xero from June 2021, then the convesrion date is 31st May 2021 as you said.

I see you mentioned he started raising sales invoices for block 1 in June 2021. If the other 2 blocks are part of the same business and I assume they are then the transactions for those also need to start at the same date. A business can have only one conversion date in Xero or any other system.

If however he has different businesses and for example different Ltd companies for each, then each of them will need their own separate set of accounts in Xero and in those circumstances each can have different conversion / start dates if necessary.

So I suggest the first step is to establish if you will be dealing with 1 business or 3 separate businesses.

Hope that helps

Kind regards

John

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