Data conversion is often regarded as one of the most formidable tasks when implementing a new accounting software system. Many businesses delay adopting new systems due to the perceived complexity of migrating their data. However, data conversion presents an opportunity reminiscent of decluttering, empowering companies to refine and optimize their business processes.
Upon close examination, it's likely that an old accounting system harbors inefficiencies and inconsistencies. The chart of accounts may have grown organically over the years, resulting in a disorganized structure that complicates reporting and analysis. Additionally, customer and vendor records may be riddled with errors, duplicates, and outdated information.
Recognizing these challenges, Gravity Software collaborates with certified partners who excel in deploying its cloud-based accounting software, Gravity. For those considering enrollment in Gravity's Premier Partner Program, this guarantees access to expert support in smoothly migrating data to the new system.
Here are some essential tips for successful data conversion:
Opening Balances
Ensure accurate starting balances for General Ledger, Accounts Payable, Accounts Receivable, and Inventory to establish a correct accounting baseline in the new system.
History
Most companies try to bring over massive amounts of history. This adds to the workload. In almost all cases, companies are not going to lose their old system, so they can keep it around for a while to have access to that history, if needed. After a year or two, most of that history will be irrelevant.
Plan Your New Chart of Accounts
Copying items from old to new may not be the best idea. For example, a Chart of Accounts in the new system may be structured differently than in the old application. A straight copy of the old chart may not allow you to use all of the new features. QuickBooks does not use Account Numbers in its chart for reporting; and higher-level systems may give you the option for a segmented chart using each segment as a reporting element. Copying the QuickBooks format as it is may reduce your reporting options.
Evaluate & Clean Up Your Data
Bad data copied from an old system to a new one is still bad data. Take time to evaluate the data you are bringing in. Moving 1,000 vendors into the new system where 800 have old or bad addresses just perpetuates the problem. Take the time to clean up your data and evaluate what you need to start with. You can always add Customers or Vendors as you go. Just bring over the ones for the opening balances.
Create a Test Environment
Set up a sandbox or test environment where you can test different scenarios before committing to them. Test inventory numbering. Test the GL structure and reporting. It is easy to do with just a few items instead of thousands. You can eventually use the sandbox for training.
Parallel Systems
Most companies try to run both systems at the same time for a month or more. This can be grueling on overworked staff. Use the sandbox to run test batches and compare. Unless you have custom software, you only have to test the users’ knowledge and the system settings, not the core logic.
My recommendation is to bring in 12 months of GL activity as a monthly Journal entry for each month’s activity. This will allow you to run comparative Financial Statements, bring in open Invoices, open vouchers and set your inventory quantities to equal the old system. Run your monthly reconciling reports like an Aged Payables and a GL Trial Balance and compare the two systems. If all is good, you’re ready to rock. Keep your old system alive for reference.
With proper planning this will not be a daunting task. We have converted four companies for one organization in less than 60 days from planning to go-live.
Gravity Software, built on the Microsoft Power Platform, offers a cloud-based solution designed to simplify business operations. Positioned between entry-level applications like QuickBooks and high-end enterprise solutions such as Sage Intacct, Gravity provides robust functionality while minimizing overhead costs. By leveraging Gravity, businesses can enhance operational efficiencies and streamline accounting processes.
With careful planning and support from Gravity's certified partners, data conversion can become a manageable and potentially transformative endeavor. By embracing contemporary accounting solutions such as Gravity, businesses can elevate their operational efficiency and effectiveness. Schedule an online demo today to discover the full potential of Gravity Software.
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