Cloud Migration Options As An Alternative to Desktop Accounting
Practical Guidance On Transitioning From An Outdated Desktop Accountancy To A Secure And Flexible Cloud-Based System Subtitle: Getting off of Legacy Law Accounting Credits by Eric Weber Today’s law offices have transitioned from using time-consuming and archaic desktop accounting systems...
Even now, a lot of smaller and midsized businesses use desktop accounting software for the daily grind of bookkeeping, invoicing and payroll. While desktop solutions can be reliable, the recent need for remote access, collaboration with multiple users, automated backups and easier scalability have made cloud accounting a compelling alternative. This article highlights the explicit grounds for migration and what businesses need to prepare when they take the leap from desktop accounting to cloud-based solutions.
Why to look for a desktop accounting alternative?
‘Going beyond desktop-only’ comes with a number of advantages: anywhere access for remote teams, automatic offsite backups to lower your disaster risk, easier multi-user workflow and integrating with other cloud services. Some cloud-based alternatives also offer more frequent updates or less overhead in IT maintenance due to the infrastructure being hosted remotely. It’s worth assessing if these advantages match your business goals and compliance requirements before choosing to migrate?
Assess your current environment
Begin by making an assessment of your current accounting system. Determine which financial modules are being utilized; general ledger, accounts payable/receivable, payroll, inventory and so on and then identify any custom reports you have written or had developed for third party integrations you have set up and add-ons that may be installed. Consider the size of your data, active user count, and any regulatory or audit needs. This evaluation will help you decide if a direct migration is possible or whether you should rework workflows in the new system.
Choose a migration approach
Migration-wise, you have 3 options: a lift and shift approach, selective migration or phase replacement.
Lift-and-shift: Relocate all dat a nd processes without change to a cloud-based clone of the desktop. This reduces the risk to existing workflow, but can also bring over some historical inefficiencies.
Selective migration: Migrate core financial data and high-value processes first, then noncritical modules later. This helps to minimize short-term complexity, and it allows teams to absorb changes incrementally.
Staggered transition: Reimagine finance processes for the cloud and adopt new modules in phases. This tends to produce better long-term results but typically requires more up-front planning and change management.
Prepare your data
Preparing your data is crucial to the success of your migration. Remove customers and vendors not used, reconcile open transactions and keep backups of outdated records. Normalize the name formats and Chart of Accounts to minimize errors in mapping after migration. Check and confirm all data balances before doing any migration, and back up the Desktop database.
Map features and workflows
Cloud alternatives do not have all the desktop features that directly correspond. Draw a feature map that explores what’s core, what’s optional and which parts should be considered as alternative workflows. Give particular focus to payroll, multi-entity accounting, inventory costing and any custom reports logic.
Plan for integrations
Accounting rarely operates in isolation. Look out for banking feeds, payment processors, CRM applications, payroll services or inventory management tools. Make sure the selected cloud path supports API connections securely or there is middleware to simplify syncing. If direct feed integration isn't feasible, consider some interim CSV import or automated script.
Security and compliance
A top concern about transferring financial data to the cloud is security. Check the encryption, access controls, role-based permissions and audit logs. Ensure that the cloud option meets necessary regulations for your industry (including, but not limited to, data residency and retention requirements). Enable MFA and least privilege access to minimize the chance of unauthorized activity.
Testing and validation
Create a sandbox instance where you can test the migrated data and processes before transitioning production facilities. Run side by side accounting periods with both desktop and cloud systems working in tandem for a full month or quarter. Verify balances on accounts, tax computations, aging schedules and reconciliations. Use those tests to refine mapping and correct discrepancies.
Training and change management
User adoption is the most neglected weighs of migration. Create customized learning guides and hands on lab time per role. Provide office hours or a help desk during the migration period and make sure to collect feedback for incremental iteration. Be transparent about timeline and process changes so that teams are ready for anything.
Cost and licensing considerations
Look at total cost of ownership, not just subscription fees. That doesn't account for migration services, training or integration costs and any custom development to recreate important reports. Cloud services typically minimize hardware and IT costs, but subscription based pricing models and additional fees may fluctuate. Develop a realistic budget that has overruns for unanticipated complexity in migration.
Cutover and go-live
Determine a month-end or quarter-end where everyone is flat-out and "can't afford not to do anything." “Freeze” entering data of the final reconciliation period in the desktop system and export the final balances for a controlled import to the cloud operating location. Complete the go-live checklist covering user access, bank feed set up and check scheduled items such as repeating invoices and runs.
Post-migration optimization
Post go-live closely follow system performance and user response. Remove any temporary workflows implemented specifically for the migration and streamline automation when applicable. Periodically audit users permissions and review integrations regularly to make sure data is syncing properly. From there, gradually introduce advanced capabilities like automatic approvals, better reporting and process automation to reap the full rewards of a cloud-first approach.
When a migration might not be appropriate
Some organizations may not be able to move as a result of regulatory limitations, or because their desktop workflows are highly customized for less immediate migration. In such instances, you may want to look into hybrid alternatives or remote desktop solutions where your resources can be accessed remotely without having potentially to complete a full re-architecture. Bu tkeep your exit strategy, and occasionally revisit cloud readiness.
Conclusion
(Transitioning from Desktop to Cloud Based Accounting by Marjorie Adams) Transitioning from desktop accounting to cloud accounting is a smart move with the potential for enhanced access, increased reliability and ability to grow the business. With thoughtful evaluation, data preparation and testing and training, most companies can make the switch successfully. Select a migration strategy that minimizes risk and then focus on integrations, security, and post-migration optimization. The right approach will provide the long-term operational flexibility, and you’ll end up spending less time managing on-premises systems.