What should you enter before the conversion date in Xero?

The correct answer focuses on the importance of entering unpaid invoices and bills before the conversion date in Xero. This is crucial for maintaining accurate financial records, as it ensures that all outstanding transactions are reflected in the accounting system right from the start. Unpaid invoices represent money that is owed to the business, and by entering these, you establish a clear picture of the company's assets. Similarly, entering unpaid bills allows the business to track its obligations accurately. This foundational step is essential for accurate financial reporting, as it guarantees that all known liabilities and receivables are accounted for when transitioning to the new accounting system.

The other options, while relevant to various aspects of accounting, do not have the same direct impact in the context of key financial data that should be managed from the onset in Xero. Recurring journal entries, monthly bank statements, and historical adjustments, while important for completeness and accuracy, do not hold the same immediate relevance in establishing a clear financial position prior to the conversion date as the unpaid invoices and bills do.