Four key steps before moving or changing accounting systems
If you’re thinking of moving or switching accounting systems, you’re definitely not alone. With advancements in cloud-based accounting over the past 3-5 years, a wave of businesses are moving from desktop software into more accessible cloud based options. Whether you’re moving from Quickbooks Desktop, Sage, or a smattering of excel sheets on your desktop, there are four essential steps you need to take before making any switch.
Step 1: Reconcile your bank accounts
Reconciling your bank account is essential to making sure you clean up any straggling issues. Make sure you’ve entered all of your income and expenses and reconciled to bank. This will avoid carrying forward unresolved issues that either won’t migrate smoothly, or will compound over time if forgotten.
Step 2: Reconcile any loans, liabilities or clearing accounts
Clean liabilities help keep your books in line. Unreconciled and unreviewed, they can hide gremlins and additional expenses that throw your books out of wack. Make sure you reconcile your loans just like your bank and enter any interest charges separate from loan payments.
Step 3: Review your Balance Sheet report
Actually look at your Balance Sheet report. This is the one report that a lot of business owners avoid or shy away from, because it can feel overwhelming. When you’re moving your books, you need to make sure things are accurate first, so it’s time to rip off the band-aid and dive in. (You’ll thank yourself later). A clean balance sheet is essential for a successful data migration to a new platform. If you need a little help, you can read more on how to read your balance sheet here.
Step 4: Make sure your year end filings & records are up to date (corporate, GST/HST, payroll tax)
Before you move anything, make sure that your obligations are up to date and recorded correctly, even if it isn’t time to file yet. This is one of the most important compliance pieces of having good books, so don’t overlook it.
Review your GST/HST. Review your payroll liabilities. Review your corporate tax balance against your CRA account and make sure your records are correct.
The big takeaway
Changing bookkeeping systems is hard enough without compounding on bad data. This is the reason it’s a decision that gets put off and pushed to the back-burner. Often while you push through your clunky old system for ‘just a few months longer…’
There are a lot of little details that can impact the success of a switch. Making sure these four core things are done well will pay off in the long term. Do them first for a far smoother transition to your new program.
If you’re thinking about making a switch but not sure how to start, you’re not sure if you’re ready, or you’re not sure the best option to switch to, we’re here to help. From Saint John NB to Vancouver BC, we have the expertise to customize your data migration to your specific business needs. (So that you get everything you need transferred, and nothing you don’t!).
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