There are a lot of times when businesses are looking for software solutions, especially in accounting. They tend to get excited about its features without taking their needs into consideration. They immediately spend a lot of money just to get their hands on the product; consuming a lot of time trying to make it work, only to find out in the end that it does not fit their purposes.
There are a lot of accounting systems available in the market. However, businesses need to identify what they need exactly. They should do a thorough research for them to be able to select wisely. Here are 5 simple steps to follow in switching accounting systems.
1. Map out your chart of accounts
Your charts of accounts determine how your business is performing. The chart contains all financial statements that are in your general ledger. Accounting software has all these data sorted but it is also vital to map out your balance sheet and sales reports so you will know how to structure it precisely.
2. Choose a cut-off date
Give yourself enough time for the entire transition process. Typically, this can happen during the end of a fiscal quarter or year. A lot of mistakes can be made if the switching is rushed. Depending on the size of your business, it can take weeks or even months for the process to be over, so make sure that you give it enough time.
3. Clean your records
Inaccurate and useless data are one of the biggest problems that you can encounter while switching accounting systems or going computerized. It is better to fix this if you are well aware that there are wrong transaction coding or irrelevant information in your books. Take this as a perfect opportunity to start anew.
4. Do a final check
Run your new software to highlight its performance and the difference in the workflow and results. Once it is ready and running smoothly, it is now time for your team to make a test. Schedule workshops and trainings, so, everyone in your workforce knows how to implement it correctly.
5. Go Live
Now that you have transitioned successfully to your new accounting system, it is time to go live. You need to follow-up and focus on the feedback from your employees after switching programs. Continuous monitoring and proper execution will eventually produce the output that you need for your company.