Client: Sixpenny Day Nursery

Company Background:

Sixpenny Day Nursery, a well-established childcare provider, faced challenges in managing their finances efficiently across multiple departments and entities. As the nursery expanded, their existing financial system, Sage 50, became increasingly complex and cumbersome. They sought a more streamlined solution that would improve financial visibility, simplify reporting, and integrate smoothly with their existing business tools. After careful consideration, they chose to migrate to Xero, a decision that would allow them to scale their operations with ease and efficiency. Here’s how eCloud Experts, Xero’s Gold Champion Partner and global migration experts, helped Sixpenny Day Nursery successfully transition to Xero, including the migration of data with tracking categories, customisation of the Chart of Accounts (COA), and seamless integration with Pleo.

The Challenge:

Sixpenny Day Nursery had been using Sage 50 to manage their finances, but as the nursery grew, the complexity of handling multiple departments and activities became increasingly difficult. Reporting across different entities and tracking financial performance at a granular level were cumbersome tasks. Furthermore, they needed a solution that would integrate seamlessly with third-party applications like Pleo, a tool for managing business expenses.

Their main objectives were to streamline financial processes, simplify reporting, and enable better tracking and categorisation of financial data. They also wanted to integrate Pleo with Xero to automate expense reporting, making it easier for their team to track employee spending. Sixpenny Day Nursery needed a solution that would allow them to manage multiple departments, each with its own financial data, while ensuring consistency across their group of entities.

The Solution:

As Xero’s Gold Champion Partner and global migration experts, eCloud Experts took a comprehensive approach to address Sixpenny Day Nursery’s unique needs. Our team worked closely with Sixpenny to ensure a smooth and successful migration, customising Xero to match their requirements and integrating essential tools like Pleo.

1. Data Migration with Tracking Categories

The first key task was migrating Sixpenny Day Nursery’s financial data from Sage 50 to Xero. One of the primary challenges was ensuring that all data, including transactions, invoices, bills, and payments, was accurately transferred into Xero without losing any critical information. Additionally, Sixpenny needed the ability to track their finances by department and activity.

In Xero, tracking categories provide an efficient way to categorise financial transactions for detailed reporting. To maintain this level of detail, eCloud Experts migrated the tracking categories from Sage 50 into Xero. This allowed Sixpenny Day Nursery to continue categorising their financial transactions by department, such as nursery rooms, after-school clubs, and holiday camps.

We ensured that the migration process was smooth and precise, avoiding any disruption to their day-to-day operations. As a result, Sixpenny Day Nursery was able to continue tracking its financial data as it had before, but with enhanced accuracy and efficiency thanks to Xero’s powerful features.

2. Customisation of the Chart of Accounts (COA) for Group Consolidation

Sixpenny Day Nursery operates across multiple entities, and each entity has its own set of financial records. To ensure consistency in reporting across the group, Sixpenny needed a customisation of the Chart of Accounts (COA) in Xero. This would allow them to maintain separate financial records for each department while still being able to consolidate financial information for group-wide reporting.

As part of the migration, eCloud Experts customised the COA structure in Xero to align with Sixpenny Day Nursery’s existing setup. This included mapping and merging nominal accounts to facilitate group consolidation. The customisation of the COA made it possible for Sixpenny Day Nursery to generate financial reports at both the entity level and the group level, with complete visibility into the performance of each unit within the business.

This group consolidation feature was essential for Sixpenny, as it allowed them to see a consolidated financial view across their various entities while still tracking financial data at a granular level. By mapping and merging nominal accounts, we ensured that the group consolidation process in Xero was straightforward and efficient.

3. Pleo Integration and Setup with Xero

To further streamline their operations, Sixpenny Day Nursery wanted to integrate Pleo with Xero. Pleo provides smart payment cards for employees, which can be used for business expenses. The tool automatically syncs expenses with Xero, eliminating the need for manual data entry and saving time during the reconciliation process.

eCloud Experts facilitated the integration of Pleo with Xero, setting up the connection between the two platforms. Once integrated, all employee expenses were automatically imported into Xero, where they were assigned to the correct accounts in the COA. This integration allowed Sixpenny Day Nursery to track employee spending in real time and ensure that all expenses were properly categorised and reconciled.

The seamless setup of Pleo with Xero not only improved efficiency but also provided greater visibility into employee expenses. This integration empowered Sixpenny Day Nursery’s accounting team to focus on more strategic tasks, while Xero and Pleo handled the heavy lifting of expense tracking and reconciliation.

4. Streamlined Financial Reporting and Real-Time Insights

The migration to Xero, coupled with the integration of Pleo and the customisation of the COA, enabled Sixpenny Day Nursery to gain better visibility into their financial performance. With tracking categories and a custom COA structure in place, Sixpenny could now generate detailed reports that provided a comprehensive view of the nursery’s finances.

Xero’s real-time reporting capabilities allowed Sixpenny Day Nursery to stay on top of their financial data, with up-to-date insights available at the click of a button. Whether it was preparing profit and loss statements, reviewing departmental spending, or analysing financial performance across entities, Sixpenny’s accounting team had access to the information they needed to make informed decisions.

Additionally, the integration with Pleo streamlined the expense reporting process, providing real-time visibility into employee expenses. This reduced the time spent on manual reconciliations and ensured that financial records were always up to date.

The Results:

After the successful migration from Sage 50 to Xero, Sixpenny Day Nursery saw significant improvements in their financial management:

  • Streamlined Financial Processes: With tracking categories, a custom COA, and seamless Pleo integration, Sixpenny Day Nursery was able to manage their finances more efficiently, reducing the need for manual data entry and reconciliation.
  • Improved Financial Reporting: Xero’s robust reporting features, combined with the customised COA, allowed Sixpenny Day Nursery to generate accurate and detailed reports, both at the entity level and across the group.
  • Real-Time Insights into Expenses: The integration with Pleo enabled Sixpenny to track employee expenses in real time, improving visibility and control over spending.
  • Time Savings: Automation of key financial processes, such as expense management and reporting, saved Sixpenny Day Nursery’s accounting team significant time, which could now be directed towards more value-added activities.

Why Choose eCloud Experts?

At eCloud Experts, we pride ourselves on being Xero’s Gold Champion Partner and global migration experts. With over 12 years of experience in handling complex migrations and customisations, we help businesses like Sixpenny Day Nursery transition to Xero with minimal disruption. Our team of tech-savvy accountants specialises in providing tailored solutions that simplify accounting processes, improve financial visibility, and integrate with third-party tools to optimise business operations.

In addition to our expertise in data migration, we excel in customising Xero to meet the unique needs of businesses, including group consolidation, nominal account mapping, and merging. With our experience in handling multi-entity businesses, we ensure that our clients have a solution that provides both granular financial tracking and consolidated reporting at the group level.

Are you ready to make the move to Xero and transform your financial management?

Contact eCloud Experts today to learn how we can help your business streamline its financial processes and achieve greater success.