How to​Transition From Desktop Accounting Software To Cloud Based Accounting Software

Ditch the desktop! Adopting cloud-based accounting software A step-by-step, practical implementation guide to moving from traditional accounting software to cloud accounting with no loss of productivity and a minimum of disruption Your desk. And how to leave​it!Every article you read th.

Introduction

Transitioning your back office of your desktop accounting system to cloud accounting software is an exciting next step for any business, making the most of automation technology like rules, bank​feeds, and data entry. The dust of a migration can be off-putting, but by having a clear plan and taking an organized approach you won’t​have to worry about any down time, loss of historical data or confused team members. This​guide walks you through preparation, execution testing and follow-up tasks, so that you can transition with confidence.

First, identify your needs​and make your goals clear

Start by jotting down the features you’re looking to get from cloud accounting,​like remote access, multi-user collaboration, automated bank feeds, enhanced reporting or heightened security. When defining your objectives,​identify quantifiable targets like month-end closing time reduction, faster invoicing or cross-company reporting. Understanding these results will inform what data and workflows need to be​migrated and what can be reconfigured or decommissioned.

Inventory existing data and processes

Make a list of the applications where you do your accounting: General Ledger, Chart of Accounts, Customers and Vendors lists Invoices, Bills Inventory records Payroll information Historical transaction history FILINGS​WITH THE IRS Important questions to ask rapidement. – Map your process current state — how invoices​are being generated, approval processes and bank reconciliations / period close check-lists. The​sooner you can identify and scrub irrelevant or obsolete data, the less likely it is to migrate.

Clean and standardize your data

Tidy up​your records before sending anything out. Archive or delete customers and vendors that you​are not using. Fix duplicated contacts, resolve mapping​problems or reconcile balances. Consolidate names of customers, vendors and items so the importing data will be uniform in the new​system. Clean data is important because they minimize errors and​make it easier to reconcile post-migration.

Timetable and plan your​migration.

Select a​migration window that causes the least impact, typically on weekends or low-accounting periods. Assign tasks and responsibilities: who is going to be the one exporting data, who needs to be responsible for importing the same, validating that​nothing was misinterpreted or added changing subsequent outcome of such action. Create​a rollback point in the event that there are issues you can’t work around.

Back​up everything, and maintain audit trails.

Secure backup your​desktop system and put a copy of your most important reports—trial balance, aged receivables, aged payables, bank statements tax filings— outside run out behind the barn. Keep audit trails and attachements if that is possible so you have the source documents available in case you need to refer back​to them during reconciliation.

Map​your COA and data fields

Another especially crucial step is the process of field​mapping. Make sure that​every account, customer, vendor and item in the desktop chart of accounts has a direct counterpart representation within he cloud. Decide what history to bring in — opening, year-to-date or full history and how​you are going to enter the opening balances.

Export and transform data

Conveniently export data from the desktop​application in a variety of formats compatible with excel, database or reporting applications. Convert and scrub exports to fit desired layouts for the cloud​system. Some popular transforms​are date formatting, account codes, tax codes, consistent customer and vendor identifiers. Check export files for​completeness and formatting problems before importing.

Import data in phases

Logical import: Import data on a logical basis, first chart of accounts & settings, then master data such as​customers or suppliers, opening balances and historical transactions. By doing incremental imports, you can help identify problems early and fix mapping issues​without having to redo the later data imports.

Reconcile and validate

After every import step, compare totals to​your backups and original reports. Check account balances, receivables, payables and inventories to ensure they reflect the​expected amounts. Generate typical financial reports —​trial balance, P&L and balance sheet as well as compare these to pre-migration reports to identify mismatches.

Test workflows and integrations

Test essential processes such as invoicing, bill payments, bank reconciliations, payroll runs (if this is being migrated)​and reporting. Even within your​bank feeds, payment gateways and other integrations that you depend on, confirm connections are live and transactions are testing ok. Involve end-users in the testing so standard​daily processes work as they are supposed to.

Educate team and update​documentation

Train you’re accounting and​operations staff based on their functional roles. Document short procedures​for new procedures, approval chains and everything that have been revised. Try to make sure that training sessions and​quick guides will help the users cope with SAM faster and there are not too many support requests.

Go live and monitor closely

Transition operations to the cloud system​on the target go-live date and halt changes in the legacy system to avoid data drift. Check your transactions regularly in the first few weeks, and reconcile daily when you start​out. Keep access to historical backups if you have a reason for needing to go back and read source​materials.

Post-migration review and optimization

After that, take​the time to perform a post-migration audit of your old site. Compare performance against the goal you set at​the beginning: Are month-end processes shorter? Is reporting easier? Find any lingering manual processes and​investigate automation tasks like recurring invoices, rule-based bank categorization, or summary dashboards.

Most people go​wrong and how to avoid them

Skipping data cleanup: Moving around now-its-bad-and-a-problem data only leads​to eternal indigestion. Allocate time for thorough cleaning.

Bad to no Key mapping: If the keys aren't properly mapped, sensitive granular​balances can't be tracked. Validate mappings before import.

Insufficient testing: Haste makes waste when it comes​to testing, as rushed testing can mask workflow problems. Test with​real world users and devices.

Underestimate training requirements: You are only​as good as your users. Prioritize clear, role-based training.

Checklist for a smooth migration

• Establish​ objectives and key results
• Inventory and clean data
• Export reports and backup historical​data
• Map of the accounts and​fields.
• Export, convert and validate​data
• Import in logical phases
• Reconcile after each import
• Test workflows and integrations
• Training to users and documentation availability
• Broadcast at non peak times
• Monitor operations and optimize

Conclusion

Making the move from desktop accounting to cloud accounting software​isn’t as intimidating as they think, and it’s a very achievable project with incremental returns when tackled in a methodical and disciplined way. Concentrate on quality, phased roll outs,​thorough testing and training. And with​the proper procedure, you can provide your accounting staff with superior access, enhanced collaboration and smarter financial practices.