If you're new to Xero, what date should you enter when importing opening balances for inventory?

When importing opening balances for inventory in Xero, the correct date to enter is the conversion date. This is crucial because the conversion date is the point in time when you are transitioning from your previous accounting system to Xero. It marks the start of your financial records in Xero and establishes the inventory values as they were at that specific moment.

Using the conversion date ensures that your inventory balances are accurately reflected from the onset of your Xero accounting. This date aligns your new records with the financial history of your business, which is essential for reporting and analysis. Accurate opening balances help maintain the integrity of your financial data and ensure consistency in your accounting practices.

Choosing the current date or any arbitrary date in the last month does not accurately reflect your inventory status at the transition period. Similarly, using the last day of the previous financial year could lead to discrepancies if your business's inventory position changed at any point after that date through sales, purchases, or other transactions. Thus, the conversion date is key for achieving accurate and reliable financial records in Xero.