This is going to sound like a really dumb question. At first I thought it was just my brain failing to function, but I can't work my mind around it. I'm using a problem to demonstrate the conceptual issue, but what I care about is why things work however they may.
Let's say we have a rectangle $5~\text{cm} \times 10~\text{cm}$. What is the area in meters?
If we say it is an area of $50~\text{cm}$, our answer should be $.05~\text{m}^2$.
On the other hand, if we were to convert to meters first, $.05~\text{m} \cdot .1~\text{m} =.005~\text{m}^2$.