How to successfully switch accounting systems
Sometimes we just need to switch. Whether it's our energy provider, our internet service or car insurance, there’s often a right time and a good reason to make the switch. And it’s often relatively simple to do so.
But when it comes to switching accounting or financial management software, there are bigger risks and more research involved. That’s not to say it needs to be difficult, but you need to be prepared and have a plan in place to ensure the process is as smooth and successful as possible.
Keep reading to discover the risks of changing your accounting software, what lessons you can learn from other businesses who have already trodden the path and changed their finance systems, and how to make switching easy with the right accounting systems provider.
6 minutes
Written by Kit Morris
How to successfully switch accounting systems
According to a recent industry report, nearly 30% of ERP implementations fail to deliver half of the intended benefits to a company. Your business can avoid ending up in a position like this - if you ask some key questions up front, and consider and plan for the common risks associated with changing accounting systems.
Does your business need a new finance system?
As with any system, if your current software isn’t evolving with your business and the needs of your teams, that software can quickly become outdated.
No one will understand if your business needs new accounting software better than your finance team, so lean on them to understand what your current system is doing (or not doing), what improvements are needed, and how you can best achieve this. They will know how your current accounting software could be limiting – or even damaging - your business.
If your finance team can’t complete their day-to-day responsibilities with ease, then it could be the right time to switch. Time wasted on mundane tasks can add up to days each month, and holds your finance team back from focusing on value adding tasks like strategic financial planning and supporting wider business objectives. In addition, if you find the right solution, the benefits will extend far beyond your finance function.
Read our guide to knowing when the time is right to move on from your current accounting or finance system.
So, you’ve decided you need to switch your accounting software... What now? You need to go into the process prepared for what could go wrong, so that you can do whatever is required to manage those risks.
Know what you want to achieve
No matter the business you’re in, you can’t choose the right software without having clearly defined goals.
- Why are you switching?
- What problem or limitation do you want the change to solve?
- What opportunities are you hoping to unlock?
Unless you define these objectives, you’ll be on the backfoot from the start. And it could cause serious financial headaches for the business and even more frustration for your finance team than the software you’re trying to replace. Having objectives and non-negotiables also means you’ll be in a better place to understand the costs of what’s involved.
Fail to plan, plan to fail
Every switch to new accounting software should have a detailed and clear plan in place, underpinned by your goals and supported by an expert accounting software partner.
When choosing new finance software, finding the right vendor is key. Your partner should be talking you through the risks of switching and working with you on a clear plan that fits the needs of your business and helps you to understand how each stage will work. Access finance management solutions include step-by-step ‘Flight Paths’ to ensure a smooth integration of your new solution
If your partner hasn’t done a complete audit of your current system, processes and data and provided key potential pain points in your switching journey and how to overcome them, then you can’t be sure they understand the risks. And if they don't, how will you?
So, ensure your accounting software switch is following a clear plan that’s a collaboration between you and your new accounting software provider. Our checklist for implementing a new accounting system is a useful read.
Know your data
For most businesses, one of the key benefits of moving to a new accounting system is achieving better reporting functionality and the insights that follow. But your reporting coming out can only ever be as good as the data going in.
Businesses now produce huge volumes of data, and it can be a real challenge to ensure all this data is accurate and in a format that allows it to provide actionable insights for the business. Do you have the resource to ensure all data is accurate within the time frame of your switch? You need to ask yourself:
- Which datasets are accurate and needed in the new system?
- Which datasets are needed but require work to make them accurate?
- Which are essential to financial reporting and planning?
Your accounting software partner will be able to work with you to ensure the right datasets are migrated, accurately and securely. The wrong insights could be more harmful to your business than no insights, so taking the right action on data is vital to a successful switch.
Get the right people on the job
Choosing the right person internally to oversee and manage the switch is just as important as having the right partner.
But not every business will have finance managers or directors that have experience implementing software. So, it might even be worth doing some research and bringing in an outside consultant who can work with your partner and your teams to make sure you are well supported throughout the switch.
