When we start out in business, we choose an accounting software and stick with it.  We do this because the thought of changing can be daunting.

But sometimes we are forced to change.

It could be that you are changing to a new bookkeeper or accountant.

It could be that you were previously using spreadsheets.

It could even be that you were using a desktop version of accounting software and you were forced to change because of the introduction of Making Tax Digital (HMRC).

Can I change software mid-financial year?

Yes, you can, although it is recommended to change at the end of your financial year.

If you change mid-year, it means you’ll have financial info in both sets of software which in the long run, will create more work having to work between the two and open to errors being made.

This is why it’s recommended to change at the end of your financial year.  If you are also changing bookkeeper, or accountant, at the same time, let your previous bookkeeper, or accountant, deal with the previous financial year and start afresh with the new one.

Should I move my old information across to the new accounting software?

Not necessarily.

All software packages will require opening balances to be entered when setting up.

Opening balances may be your bank balance at the end of your last financial year, customers who owed you money and suppliers that you owed money to.  You will need a detailed list of invoices outstanding by customer and supplier in order for these to be entered in the new software, in detail.  This info is required in order for these to be marked as paid at a later date.

A trial balance is a good starting point for opening balances.  Although these are just totals and won’t give you the detail.  It’s important to have hard copies of reports from the software like trial balance, debtors (customers who owe you money), creditors (suppliers you owe money to), detailed asset reports and any others you deem relevant for future reference.

What problems am I likely to have when I make the switch?

Moving from one software to another can be tricky.  If moving from say Sage 50 to Sage Business Cloud, it’s fairly straightforward in that it’s an export from one and import to another.  If moving from another software provider, like Quick Books, you may need to use another method like Move my Books.

If you are changing bookkeeper, or Accountant, at the same time as changing software, they may do this for you.

What if my opening balances are not ready?

This may be because your previous financial year is not finalised.

That’s fine, it just means you can enter what you have at that point and make amends later.

What software is best?

Do your research.  It may be that some packages don’t offer the same features as your last software, or perhaps they offer more.

If you are thinking of changing, the software that I use is Sage Business Cloud for both accounting and payroll.