This blog will outline the pros and cons of switching to new accounting software at different points in your financial year. Many businesses and individuals struggle with this decision, as there are valid arguments for waiting until the end of the financial year or making the switch mid-year. We’ll explore the different factors to consider and provide guidance on which option may be the best for your specific situation. Whether you’re a small business owner, financial manager, or simply looking to improve your personal finances, this blog will provide valuable insights on how to make the most informed decision for your accounting needs.
So, when is the best time to change bookkeeping software?
At the beginning of the calendar year
For many businesses, the start of the fiscal year coincides with the start of the calendar year. As a result, January 1st is one of the ideal times to switch accounting software. One advantage to this is there is no financial carryover. If you begin using your new software in the new year, you won’t have to transfer funds from one system to the next in a flat sum.
There will be no payroll history to convert to the new programme either because payroll reporting normally commences with the new year.
At quarterly changeovers
Changing software towards the end of the fiscal year may not make sense in some organisations. In that instance, you might make the changeover at the start of a new quarter instead. The start of Q2 (April 1) or Q4 (October 1) could be suitable benchmarks as these dates are outside of most contractors’ peak season. With three months to arrange for a smooth year-end, October 1 has a unique advantage because it’s a lesser-known changeover time, vendors will typically have more resources on hand for you than at year-end.
When it syncs with your business growth plan
If you have a hard time visualising this idea, it may be time to create a comprehensive business expansion strategy. Investing in software is a long-term strategy; even a sole trader should consider future growth when making purchases. This growth plan may indicate that you’re not yet ready for a switch and would benefit by waiting until it fits better with your business growth plan.
When your current software holds you back
You may have experience with a particular piece of software from a prior job or at a different company and realise that it can be utilised to automate some of your current workloads. The more time you spend in Excel rather than your dedicated product, the more you know that you’ve outgrown your existing software. It’s best to choose a product that can grow with your needs and offers expert training and support.
When you can get a good deal
Who doesn’t love a good bargain? Whether it’s a January sale, March madness or Black Friday, be sure to research for the best long-term deal and watch out for high price hikes year-on-year that tie you in.
When you have had enough of your current provider
Whether you have had enough of poor customer service, extortionate price hikes and/or your account manager seems to always be on holiday, then today is the day to start looking for an alternative. If you’re tired of using several non-integrated providers, start looking for a more efficient solution for your growing practice.
Want to talk about switching to a new accounting software? Contact us today.