Upgrading your accounting system is a pivotal decision that can dramatically impact your business operations. Whether you’re moving away from QuickBooks or transitioning to a more advanced solution like cloud accounting software, data conversion is often seen as the biggest challenge in the financial system transition. However, with proper planning and the right tools, data migration can become an opportunity to improve business efficiency and streamline operations.
This article will provide six essential tips to ensure a smooth and successful data conversion when upgrading to a new accounting system. Whether you are a small business or scaling to multiple entities, these insights will guide you through the process and show how Gravity Software can make the transition seamless.
1. Ensure accurate opening balances and historical transactions
When migrating to a new accounting system, ensuring that your opening balances and historical transactions are accurate is crucial for accurate financial reporting. Opening balances are the foundation for everything from the General Ledger (GL) to Accounts Payable (AP), Accounts Receivable (AR), and Inventory. They act as the baseline for all future transactions, so getting them right is essential for accurate financial statements.
How Gravity Software helps:
- Gravity’s user-friendly interface allows you to easily import opening balances into the system. You can also validate your data through automated checks to avoid discrepancies.
- Gravity's multi-entity accounting software ensures that opening balances for each entity in your business structure are correctly aligned, even if you are managing multiple companies.
2. Limit the amount of historical data you import
It’s easy to get caught up in bringing over every bit of historical data, but doing so can complicate your data transfer and increase your workload. While you may need to import some historical data, usually two years, to maintain comparative reporting, you don’t need to transfer years of information that is rarely used. In many cases, older data becomes irrelevant after a few years.
Best practice:
Only import the necessary data that will be used in your day-to-day operations and needed for historical reporting. Keep your old system accessible for reference while focusing on bringing over the most important records for your current operations. This can help reduce the complexity of converting your data and speed up the data migration process
How Gravity Software helps:
- Gravity allows you to selectively import data, ensuring you bring over only what’s essential for your ongoing operations.
- You can archive historical data for easy reference, keeping your primary system clean and organized.
3. How to plan your new chart of accounts for successful data migration
One of the biggest mistakes businesses make is copying their old chart of accounts directly into the new system. While QuickBooks may not use account numbers, many higher-level systems like Gravity Software offer segmented chart of accounts that allow you to categorize and report data more effectively. A straight copy of your old chart may limit the new system’s capabilities.
Best practice:
Before migration, map out a new chart of accounts that will align with your business needs and the capabilities of the new software. Avoid simply copying the structure from your old system. Instead, take advantage of the new system’s advanced reporting features by planning your accounts thoughtfully.
How Gravity Software helps:
- Gravity Software provides customizable chart of accounts features with segmented reporting, so you can optimize financial reporting for better insights.
- It also supports multi-entity accounting solution structures, allowing you to create unique charts of accounts for each company while keeping everything under one system for easy consolidation.
- With Gravity’s dimensional capabilities, you can add additional layers of data tracking, such as departments, locations, or projects. This allows for more granular reporting and greater flexibility in how you categorize and analyze financial information across your business.
4. Evaluate and clean up your data
Migrating poor-quality data from your old system into the new one will only perpetuate inefficiencies. This is the perfect opportunity to clean up your records and remove outdated or inaccurate data. Evaluate and cleanse your customer and vendor data by eliminating duplicates, correcting inaccuracies, and archiving irrelevant records.
Best practice:
Don’t rush through this process—take the time to thoroughly assess the data you're migrating. For example, check that customer addresses, vendor payment terms, and invoice histories are up to date before bringing them into the new system. This will reduce the chance of errors and data discrepancies in the future.
How Gravity Software helps:
- Data validation tools in Gravity Software help identify errors or missing information before you import your data.
- Gravity’s data import wizard provides step-by-step guidance to ensure your data is migrated cleanly and correctly, reducing the risk of errors in the new system.
5. Creating a test environment for data migration success
Before committing to full-scale data migration, set up a sandbox or test environment. This is crucial for testing various scenarios, such as inventory numbering, general ledger structures, and financial reporting formats. You can validate the setup before transitioning live data to the system, ensuring there are no unexpected issues after go-live.
Best practice:
Start with a small dataset to test the migration process. This allows you to identify and resolve any issues before migrating the full dataset. You can also use this test environment for training your team on the new system, which will help them become familiar with the software and its features.
How Gravity Software helps:
- Gravity allows you to set up multiple test environments, making it easy to simulate different scenarios and check that everything works smoothly before the live migration.
- The sandbox environment is ideal for training users without the risk of affecting real data, ensuring a seamless transition once the system is live.
6. Consider running parallel systems temporarily
Running both your old system and the new one in parallel for a short period can be beneficial for ensuring everything is set up correctly. This process helps you verify that your new system is functioning as expected, while allowing you to identify and resolve any discrepancies before fully transitioning.
Best practice:
Most companies run both systems simultaneously for a month or more. While this can be challenging, it’s an effective way to compare reports and ensure everything matches. Use a sandbox environment to run test batches and compare the data across both systems. You only need to test user knowledge and system settings, not the core logic.
How Gravity Software helps:
- Gravity Software makes it easier to conduct parallel testing by allowing you to import 12 months of General Ledger (GL) activity as monthly journal entries for each month's data.
- You can run comparative financial statements, including Aged Payables and GL Trial Balance reports, to check for discrepancies and ensure the new system is aligned with the old system.
- Once everything reconciles, you’re ready to go live. Keep your old system running for reference during this period to ensure smooth transition and data verification.
Customer testimonial: How 360 Destination Group simplified their data conversion
"Gravity Software has been a great fit for our company as we expand our entities," says Shawna Bailley, Director of Accounting at 360 Destination Group. "We had outgrown QuickBooks, but Gravity’s cloud-based solution allowed us to streamline our internal accounting processes, eliminate redundant programs, and consolidate financial data across multiple companies with ease."
360 Destination Group faced challenges with intercompany transactions and manual data entry in QuickBooks, but after transitioning to Gravity Software, they successfully consolidated their multi-company financials, enabling them to eliminate redundant data entry and gain better reporting capabilities.
For a deeper dive into their journey and the full benefits they’ve experienced, read the full customer story here.
Simplify your data conversion with Gravity Software
Data conversion doesn’t have to be a daunting process. With the right planning, tools, and support, businesses can seamlessly migrate to a new accounting system and gain greater operational efficiency.
At Gravity Software, we have successfully helped businesses migrate from QuickBooks and other legacy systems to our cloud-based accounting platform. Built on the Microsoft Power Platform, Gravity Software offers a comprehensive solution that balances the simplicity of entry-level accounting software with the advanced features found in high-end enterprise systems like Sage Intacct.
Gravity Software is designed for growing businesses, offering multi-entity accounting, advanced financial reporting, and seamless integrations. With certified partners to support your system migration, Gravity ensures that your transition is smooth and efficient.
Ready to take the next step in upgrading your accounting system?
Schedule a demo today to see how Gravity Software can simplify your data conversion process, streamline operations, and optimize your financial management.
Gravity Software
Better. Smarter. Accounting.
