Avoiding The ‘One Size Fits All’ Data Migration Pitfall
Migrating your Accounting Data from a desktop accounting system to online has a lot of benefits and efficiency appeal. From Sage or Quickbooks Desktop to Xero or QuickBooks Online. Tackling the switch can be a huge win for both small owner/operators all the way up to large growing companies. Improved access to data, quicker turnaround times, distributed workflows, and timely accessible financials are all huge wins.
The actual process of getting there can be complicated though. It’s what stalls most companies before they even start. Navigating a data transfer is complex and requires attention to detail. Careful planning is needed before, during, and after the switch.
I’ve worked directly with companies to migrate their data in fine detail, sometimes transferring years worth of data. I’ve also worked with companies that used ‘easy’, ‘hands-free’, or ‘automated’ data migration systems. The latter almost always required time intensive unravelling of the errors and lost data after the fact.
Getting your data migration right, while monitoring adoption by your team for successful change management is no small feat. Nothing about your company is cookie cutter. Your accounting data migration shouldn’t be either.
A Few Things to Avoid When Approaching Your Accounting Data Migration
1. Migration Specialists that make over the top promises
You know the saying… If it seems too good to be true, it probably is. While a properly executed data migration should not cause you stress, or even disrupt your workflows, they do take time and they do take skill. Watch out for any promises to transfer your data within an extremely short time frame (hours or days). Chances are appropriate care is not being taken to customize the transfer to your specific business and data needs.
2. Platform Inherent Migration Services
Companies like QuickBooks LOVE transferring customers from their sunsetting desktop programs into Online subscription models. What they won’t be as enthusiastic about communicating are the actual challenges you may face, or the differences in adopting the new program. I’ve seen transfers facilitated only by native QuickBooks support that ended poorly for these exact reasons.
Make sure you have a person on your side who understands the implications and knows how to customize:
- Your company set-up in the new system
- Your actual accounting data migration
- Your team training on how to operate effectively in the new system.
Free transfer services are only typically only interested in getting basic functioning data over. They don’t necessarily have the expertise or bandwidth to customize your transfer to your specific, ideal business use-case.
3. Migrating data without making sure your books are clean first
I wrote an article about this one because it’s SO important. You can check out What To Do BEFORE Changing Accounting Systems here. My favourite analogy here is that it’s like moving house. When you get ready to move, you go through a natural cleanup process as you pack up your things. You donate things you don’t need, and throw away the ones that are beyond repair.
Migrating your data without making sure it’s clean and free of errors is like packing that smelly old pair of sneakers. As soon as you get to your new house and unpack, those same sneakers are going to stink up your new house too, maybe even worse than before.
With your books and accounting data the effect is worse than a bad smell. Issues in your data may corrupt your data transfer and turn into even larger gremlins down the line. Pay close attention to this one. Make sure your year end is up to date, taxes are accounted for, and bank accounts reconcile cleanly.
If you aren’t sure, ask your year end tax accountant. While they won’t likely be able to go into detail about an actual migration. They will likely have a general opinion about whether or not your books are in a good state to take that plunge.
How to Customize Your Accounting Data Migration
It’s all well and good to tell you what you shouldn’t do and why. How do you actually make sure your data migration is properly customized to your business? As a general rule of thumb it’s a good idea to either work with someone who is vouched for by professionals you trust, and/or get a few different quotes. Compare so that you can make the best decision for your business.
Look for migration specialists that ask questions about your business. Not just the amount of data you have or the time-frame, but how you use it, who accesses it, and who needs access but doesn’t have it in the current system. These are the things that will shape the setup and after training within the new system.
Cheapest is also not always going to be your best friend here. There are a lot of third party migration programs that might promise a lot, but come with pitfalls. Make sure the option that you choose is the right fit for your specific business.
Get Help When You Need It
Don’t let the fear of change keep you from making the switch. There are a lot of wins to be had with newer, more accessible cloud based softwares. They do depend on your specific business needs. If you need some help deciding if a switch is right for you, and when/how to do it, get in touch and book a free call to discuss your business and options. We’re here to help whether your in or around Saint John or across Canada!