The Pros and Cons of Implementing a New Accounting System in Q4
Accounting software solutions are rising in popularity for companies (of all types and sizes) who want the flexibility and mobility of a cloud-based system with all the features and functionality they need to make sure that business financials and tax details are being properly handled and tracked.
Top Accounting Software Features
The features offered by accounting software providers are the tools that will help enhance your company’s processes. While your business needs, users, and budget will all work together to help you choose the best system for your business, there are a list of core features offered by most Accounting Software providers that you will want to make sure are included in whichever option you choose.
Features of accounting software include but are not limited to:
- Invoicing and billing
- Payroll management
- Tax calculation
- Stock and inventory management
- Sales and purchase orders
- General ledger
- Financial reporting
Accounting Implementation Timing
If you’re interested in implementing a new accounting software, you’re probably wondering when the best time to make the switch is for your business. Ultimately, it’s best to time your accounting system implementation or switch at the end of a fiscal year (or if that’s not feasible, then at the end of a quarter).
But is Q4 a good time to make a shift in your accounting processes and systems? Here’s a closer look at the pros ad cons implementing new accounting software at the end of the year.
Q4 Accounting Software Implementation: The Pros
Q4 is considered an ideal time for making an accounting process or system switch. This way, you can finish up your current year while you’re getting everything needed in place for your new accounting software and be ready for a fresh start on your new system alongside the start of a new year.
There are many advantages to choosing Q4 as your planning and implementation timeframe for a new accounting software solution.
Time to plan for a successful year-end switch.
Successfully choosing and implementing your ideal accounting system will take some planning and preparation, and using the end of the year for this phase can be very advantageous for companies whose businesses slow down near the end of the year and gear up at the start of a new year. You can use this time to compare accounting systems, research vendors and get demos of your top choices, and carefully consider all the integrations and process changes that will happen upon changing your accounting system.
Clean Transition and Switch Over
Making the clean transition at the end of the year (or end of a quarter) gives a cleaner cutoff and switch over date for all your data and financials. This will set up your business for a successful, productive, and efficient start of the new year.
Q4 Accounting Software Implementation: The Cons
While switching to a new accounting system at the end of the year, during Q4, tends to make a lot of sense for many companies, it simply may not be the best option for your business. There are several factors that can make a Q4 accounting implementation much more challenging for your company.
Year-end might be your company’s busiest time for sales.
If your business depends on the Q4 sales rush for a large portion of your yearly profits, or if your company is exceptionally busy during the last few months of the year, then it may be best for you to consider different timing for implementing a new accounting solution.
Large changes in product inventory, deliveries, and sales spikes can impact the switch, so it’s best to make the transition when these things are not going on.
Training resource limitations due to busy year end.
Since Q4 is such a popular time for companies to switch to a new accounting system, some companies may be busier than normal which can lead to limited resources for implementation support and training.
As you’re scoping out accounting software vendors, make sure that their company is prepared to support your implementation in Q4 with dedicated resources and training to ensure a smooth switch.
Tips for a Successful Accounting Software Implementation
No matter when you decide to make the transition to a new accounting software system, the switch doesn’t have to be confusing, stressful, or difficult if you follow our simple tips for a successful implementation.
Plan and prepare in advance
Preparation is crucial to any software implementation, and accounting systems are certainly no exception. You’ll need to allow yourself time to choose the best accounting solution for your business needs and then make sure you have all the key integrations completed before you launch and begin running all your financials thought your new solution.
Make the switch at the end of the year.
Timing is very important in an accounting software implementation, and to make sure you experience the least amount of disruption to your business and current accounting processes and systems, you should time your implementation for the end of the year (or at the very least, the end of a quarter).
Train your employees to increase adoption.
A step that many companies often miss when introducing a new accounting system is employee training. Making sure that all of your employees who will need to use the system fully understand how it functions and how it benefits them in their role and the company overall can improve adoption drastically and ensure that you get the maximum benefit from your software.
Like what you just read? At Wheelhouse, we are passionate about all things software, and our specialty is connecting software buyers to a solution that perfectly matches their needs.
Please visit our Accounting software page for a complete list of all the solutions we have on offer.