Planning Your Setup
There are many set up issues to consider prior to implementing your new accounting system, and the number and types of issues will be unique to your business. It is therefore impossible to list here every issue that you will need to consider prior to setting up. Nevertheless, here are some for you to consider:
- From what date do you want your new system to record data?
- What opening balances will you have and when will you enter them?
- If you are moving from one accounting system to another, do you need some data from your old system transferred to the new system?
- How do you want to set up the structure of your books in terms of Profit Centres, Chart of Accounts, Stock, Customer Groups, etc
- Will you be using pre-printed stationery like invoices and statements?
- Do you need some Implementation training and/or support for you and your staff?
- Do you need some new or upgraded hardware prior to implementing the new system?
- Have you or your responsible staff member identified sufficient time away from usual work commitments and interruptions, to undertake this task?
- Do you have sufficient consumables ready to go, like paper, printer ribbons/cartridges, floppy disks, ZIP disks, tape backup cartridges, etc?
- Have you briefed your staff of the changes you are about to implement?
The Start Date
Be realistic - if you need new hardware and furniture, or staff, then they should be in place prior to implementation day!! Choosing a start off date as at the beginning of a new financial year is OK, but you will be one of thousands of businesses wanting to do this, which means that support agencies are often stretched. Historically, support agencies and trainers are plentiful during March, December and September (the quiet months). If these months suit your business, you are more likely to get the best attention during these months.
Starting off during a month is generally not recommended because it makes monthly comparisons difficult because of the split month of implementation. Similarly, if you report quarterly for GST, then starting off in the middle of a GST quarter makes compiling GST reports for that quarter all that much more difficult (not impossible, but just difficult).
Of course most businesses have their own peaks and troughs - obviously the start up date must take account of these too.
Staff training is important with a new system, and so is practice. See if you can make sure your staff take their holidays before implementing, rather than a week or two after implementing.
Opening Balances
Ideally you will have your opening balances ready to input into your new system. Of course this is not always possible so you may have to have a plan of when you will get them, how you will get them and when you will enter them into your new system.
Migrating from Another System
Many accounting systems will be able to bring certain data across from another system saving you time and money in re-entering the data. Do not assume that your new system will do this automatically - ask. You will need to be quite specific as to what you want brought across. If your existing system is going because it is a heap of rubbish or is corrupt, seriously consider not migrating data from it into your new system.
The Structure of Your Books
You need to consider what your chart of accounts will look like and whether you will require Profit Centre reporting.
Stationery
If you plan on using specially printed stationery or blank-printed invoices and statements, then you will need to know the format you require (to fit in the with invoice and statement layout you set up) and you will need some stock on hand ready to go at implementation time.
Implementation Assistance
If you envisage having a Support Consultant assist you with implementation, then you will need to make an appointment with that person and have a clear understanding of what it is precisely that you want that person to do for you. Pre-implementation discussions are encouraged to ensure that you both know what is to occur and who is to do it.
Hardware
If you need new or upgraded hardware prior to implementing a new system, have it in place ready to go for implementation. Be sure to check your new system specifications with your Software Support Consultant prior to purchasing new hardware - you don't want to buy something that is incompatible.
Time
Implementation of your new system is important. Discuss your involvement in the implementation with your Support Consultant. If you need to devote more time to this task and less time to your normal duties, then schedule it that way.
Consumables
Your new system may require that you have a few consumables that you don't normally use, on hand. New printers - new ribbons or cartridges or toner drums, and of course the right paper. Point of Sale devices like Receipt Printers will need ribbons and/or paper rolls. New Backup devices will mean that you need a ready supply of media - tapes, disks, ZIP disks, etc.
Information Flow
Implementing a new accounting system is a reasonably big move. If your accounting staff have not been involved in the selection of the new system, you could have problems. People tend to 'turn off' and resist new accounting systems if they have not had a good flow of information leading up to the implementation. Involvement in the new system implementation is strongly recommended.
Will I Need Help?
If you have given your implementation sufficient thought and planned your approach, you probably will only require a few phone calls for assistance.
People often need a hand setting up their Chart of Accounts, but if you have your business taxation records from last year, you can always use them as a template. No doubt your Accountant would have produced a Balance Sheet and Profit and Loss Statement for your business. The balance sheet will hold the account names for your Asset, Liability and Capital accounts. The Profit and Loss Statement will have your Income and Expense accounts (there are usually a lot more expense accounts than income accounts).
Probably the area most business fall down in, is in staff training. If you are willing to devote some time to learning your system and can train your staff, that's great, but if you can't, you will inevitably need some assistance. Accounting systems are not like Word Processing packages for a number of reasons. If you make a mistake typing a letter, the result is obvious, so you simply re-type and the job is done. Accounting systems are not used for typing letters - they are used to assist with the management of your business - mistakes are a little harder to find (to the untrained eye), and because we attempt to maintain audit trails in our processing, mistakes cannot be simply 'deleted' and re-done. You can afford to make an occasional spelling mistake in a letter, but if you tell a customer they owe $100 when they really owe $1000, the consequences are a lot more significant. I think it is worth budgeting for and spending some money on training. The accounting function is too important not to consider this worthwhile.
