When to Convert from One Accounting System to Another
Question: Is there a good time to convert from one accounting system to another?
Answer: Actually, you can convert at any time of the year, but there is a “best time” that makes things as fast and easy as possible. If your fiscal year is Jan. 1 through Dec. 31, the best time to convert systems is as of Jan. 1.
The beginning of your fiscal year is best because your income from the previous year has been closed into your balance sheet at that point. You only need to recreate and enter the balance sheet accounts and not the income and expense accounts. This also allows you to have the details of all of your orders in your new system for that year. If you convert part way through the year, you will either have to recreate the transactions for that year up to that point or enter the year to date income and expense amounts up to that date—leaving the details only in the previous system.
You can, of course, convert at any time of the year. The time and effort required will be dependent on your transaction volume.
That results in your having the full year of transactions in the new system, which is helpful.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.