Changing Accounting Software
This is the time of the year whereby we will be involve in changing of accounting software due to year end cut over. Be it from ABSS to Moneyworks or whatever software to another, it will vary based on software functionalities of both software involved. We will discuss what is the work to be done when changing accounting software conceptually as it involves accounting and operations work.
Why is it usually done on financial year end? When a company is doing a cut over, there are 3 reasons why most company should do it over their financial year end:
- You will only need to take care of balance sheet, while if you are doing in the middle of financial year, you will have to take care both balance sheet and profit & loss brought forward.
- You will have to do closing inventory stock take as some company only do it during year end.
- You will need to keep checking 2 accounting software for 12 month detail breakdown of profit/loss statement.
That means, it is still possible to do changing over of accounting software in the middle of financial year, just that you have slightly more things to consider as stated above.
If we are going to do a cut over, here are some of the activities:
- Training should come first, as you need to understand the new software’s features and functions before deciding how you want to improve your operations after the cut over.
- Datafile creation, including chart of accounts, customers, suppliers and inventory. You can either do an import (assuming your old accounting software allows you to export to a text file), or manually create all these if your accounts is really simple and straight forward with very few customers, suppliers and also items. This is a process whereby your new software vendor should have capability of doing for you.
- After the master data file has been created, you can now key in your opening balance from your balance sheet (which is the closing of your financial year figures.
- Next, you can again key in or import your brought forward accounts receivables, accounts payable (summary or detail unpaid invoices and bills) and inventory stock value and quantity.
- Finally, you will need to customise your document forms (typically your invoices, purchase orders and delivery orders).
- Start generating your new transactions into the new file or software the moment the new financial period starts.
Do note the different business nature and it may vary according to your operations requirements. Therefore planning with your implementation team is very important, and also the expertise and professionalism of your accounting software vendor is of the most important factor determining your success of cut over.
Hope this clarify your concerns over change of accounting software. What is of most ultimate importance is your new software that you are going to embark should be more efficient, with better features and functionality to improve your operations which will make this process more worthwhile.
Please feel free to contact us for free consultation or discussion.
Tel: 6589 8878 Ext 7001