When to Convert from One Accounting System to Another
Question: Is there a good time to convert from one accounting system to another?
Answer: Actually, you can convert at any time of the year, but there is a “best time” that makes things as fast and easy as possible. If your fiscal year is Jan. 1 through Dec. 31, the best time to convert systems is as of Jan. 1.
The beginning of your fiscal year is best because your income from the previous year has been closed into your balance sheet at that point. You only need recreate and enter the balance sheet accounts and not the income and expense accounts. This also allows you to have the details of all of your orders in your new system for that year. If you convert part way through the year, you will either have to recreate the transactions for that year up to that point or enter the year to date income and expense amounts up to that date—leaving the details only in the previous system.
You can, of course, convert at anytime of the year. The time and effort required will be dependent on your transaction volume.
That results in your having the full year of transactions in the new system which is helpful.
Please email your questions to Harriet at Ask The Accountant.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at email@example.com.