How to Switch Accounting Software

Bookkeeping is an essential part of how any business operates, so good bookkeeping software can often help you save time, and ensure your records are accurate and up to date for tax purposes.

With it being so important, there may come a point where you decide it’s time to upgrade to new (and better) software.

Even if switching makes total sense, it can still feel a bit like breaking up with someone you’ve known for years. They’re comfortable, familiar, and just about tolerable. But not part of your future growth.

We’ll go through the signs that it’s time to end things with your current software, and share some tips to make the transition as seamless as possible. At least this time there’s no argument about who gets to keep the dog.

Let’s get into it.

What is online accounting software?

Online accounting refers to using software which is hosted online in the cloud, rather than being downloaded and used on a single device.

Despite the description, no fluffy sky clouds are involved. Instead, data is kept on secure servers dotted around the world, meaning it’s ultra secure, with everything backed up.

It’s also more accessible, because you’ll be able to login in and access your records from any device with an internet connection.

In short, it streamlines the bookkeeping process while also backing up your data.

Signs you need to switch to new accounting software

The biggest sign is that you feel like your current software is holding you back in some way.

Maybe it’s missing key features. Maybe it takes 12 clicks to do something that should take two. Maybe you just loathe looking at the user interface. None of these are good signs.

Alternatively, you may just want to reduce the amount you’re spending on accounting software. For example, because your current provider has raised its subscription fee.

Whatever you decide, be honest with yourself and choose what truly supports your business. And when the time comes to make the switch, keep Making Tax Digital (MTD) in mind so you’ll be ready for changes in the future.

Choosing the right accounting software for your business

First and foremost, you want software that’s reasonably priced (or even free!) for what it offers. That’s pretty much a given.

But you also want to look out for tools and features that will simplify your bookkeeping and save you precious time. These will depend on what sort of records you have. Yes we are about to namedrop some of Pandle’s features, but that doesn’t stop them being helpful. So your shopping list could include things like:

There’s no point paying for features which you’re never ever going to use, but it might be handy to have them equipped and ready if you’ll need them in the near future.

Preparing your business for an accounting software switch

So, you’ve found new software and want to make the switch. Great – we love a bit of personal growth.

Now it’s time to make sure you’re ready.

Let’s go through some common questions people tend to have at this stage.

What data needs to be migrated?

Things like customer and supplier lists, as well as any historical data relating to transactions.

It’s extremely useful to check the data you’re bringing over is accurate and up to date before importing it to your new software. Otherwise you’ll be starting out with all manner of discrepancies to sort out.

If you have an accountant, you could ask them to confirm any year-end adjustments have been entered in your previous software prior to switching.

So it’s worth exporting everything before you give them the good news.

When is the best time to switch accounting software?

There’s no perfect moment (sorry), but some timings are definitely less painful than others.

For example, if your business is currently undergoing any major changes, this could actually be the ideal time to change over to new bookkeeping software, as it’s an opportunity for a fresh start all round.

A popular approach is to make the switch ahead of a new financial year starting. It gives you a nice clean break, rather than having to carry over every bit of info from the previous year.

By the same token, you could consider transitioning in time for the start of the next financial quarter (you don’t need a new year for a new you when it comes to bookkeeping).

Of course, if you already know your business has a quieter period at some point during the year (e.g. December), this is another good option. You’re less likely to lose track of where you’re up to with your billing.

How do I set up my new accounting software?

Some accounting software (like Pandle) will provide an onboarding assistant to help you manage the move and transfer your existing data over.

You may also find a help centre with useful articles and product tours.

In addition to self-service tools, Pandle gives you access to a Live Chat team of bookkeepers who know the software inside and out, meaning they can provide instant support.

It’s not all about us though (hope the boss isn’t reading this), and any good provider should make the transition as easy as possible. You might also be able to get your accountant to sort it out for you – but make sure you check what this means for your billing first!

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.