How do I go about changing my accounting software?

How Do I Change Accounting SoftwareYou have made the decision. You want to change the accounting software for your business as your current package is no longer meeting your needs. But how do you go about it and what do you need to bear in mind?

In this article we will explain 8 top tips that can help you.

1. Be clear as to why you want to change and what you need from a new accounting package

It is likely that you are dissatisfied with your current software, whether this is with the software itself or with the support provided by the vendor. It is important to identify why you want to change. You don’t want to leap from the frying pan into the fire, so ensure that your new package will do what you need it to do and that everyone who needs to use it can do so.

Write a list of your requirements that any new software must satisfy. As well as features and functionality, this should include the level of support you require from the software vendor, a clear release update policy and maybe integration with other software that you use. Ensure that this list covers any dissatisfaction you have with your current software.

Prioritise the items in the list into ‘must have’ and ‘nice to have’, which will help you to identify a shortlist of potential packages and in negotiations with your chosen vendor.

2. Inform your accountant of your decision to change

You’re probably not the only one who will have to use the new software, so consult with your accountant as to which package you want to go for. They too will need to be comfortable with using the software, or at least exporting the necessary information from it.

Some accountants may be biased in favour of one package over another, especially if they are encouraged by software vendors to promote their products, but remain clear as to what you want and why you want it.

3. Research the market and determine a shortlist of candidates

You now know what you want; all you need to do it is get it! Make sure you fully assess the options available and make use of any free trials that may be available so you have the best idea of what you will eventually end up with.

Also try and future proof your purchase, and look out for new useful features such as Cloud computing and storage.

4. Audit your current IT infrastructure to confirm that it will support the new software

Software is only one part of the equation; your hardware is the other. If you don’t have the right computer hardware on which to run your preferred accounting software, you will have to either scale down your expectations of what software you can actually use or take the plunge and update your hardware.

Don’t get too fooled by the notion that the more high end and expensive software is necessarily better. There are many great online accounting packages that can be used through a secure internet connection and a simple browser, negating the need to buy a powerful PC or an over-elaborate accounting system that is designed for much bigger organisations than your own.

5. Check whether you can export all the data that you need from your current package

It is important to know how much of your data can be exported from your current software and if it is in an intelligible format that can be easily imported into your intended new software. You can investigate this yourself or maybe ask the current software provider.

If this can’t be done, it is probably a good thing that you have decided to change your accounting software. The bad news though is that you will have to manually input some or all of your historic accounting data into your new software package.

6. Plan how you intend to migrate your data to the new software

For an existing business the key issue in migrating accounting data is to ensure that the ‘opening’ balances on the new software are consistent with the ‘closing’ balances on the old software. This consistency can be achieved either by a complete migration of all data to the new software or by a ‘transition’ period whereby results from old and new software are combined.

This task can often be a time-consuming exercise to plan and execute and some software vendors will downplay this to potential customers to encourage them to choose their product. So seek cast-iron assurances from your software vendor that all vital accounts data can be migrated across and in an intelligible format.

You could choose to do this yourself, but it might be better to ask the new software vendor or an accountant or bookkeeper to do it for you. This could mean additional cost but you would have recourse to the supplier if the task were to take longer that expected or require remedial work.

7. Consider keeping your old software going as you install and break in your new software

If at all possible, keep your old accounting software going and in use for a short while as you start using the new software. It will give you reassurance that your accounting andbookkeeping processes are being maintained if you encounter issues running or using the new software.

If you are planning to run the two systems in parallel, make allowances for the time and cost of the increased user time needed to keep both systems up-to-date as well as for any additional training required for the new system.

8. Check everything is working and everyone who needs to sue the new software can do so

Review the implementation and the use of the new accounting software after one month. Is it doing everything that you expected it to? Can everyone that needs to access it do so easily? Is your accountant happy with it? If the answer is ‘no’ to any these questions, it might just be a case of adjusting permissions or preferences rather than the new software being at fault.

Investigate the concerns fully and, if the problems are insoluble and unacceptable, raise your issues directly with the software vendor and think about switching again to a different software package (although if you have followed the preceding 7 tips, you are unlikely to be in this position).

(by Ian Vickers)