Accounting software implementation: 5 key stages in a new accounting system

Skytrend Consulting Blog

Accounting software implementation: 5 key stages in a new accounting system

Femi Adeoya

February 24, 2021

Accounting software implementation: 5 key stages in a new accounting system

What is an accounting software?

Skytrend Consulting defines “An accounting software as a business solution that records, analyzes and reports accounting transactions with a view to providing management information system from which business owners, decision makers or accountants can monitor financial processes, generate reports and make informed decisions.

Its essential feature is an interactive financial dashboard with a series of charts of accounts or general ledgers for handling double-entry bookkeeping. Common features to these accounting softwares include:

Monitoring turnover
Tracking direct and indirect costs
Tracking inventory movement and management
Automated invoicing
Receipt capturing
Monitoring and controlling vendors and creditors
Tracking profitability
Analytics for budgeting and revenue tracking
Financial reporting
Tracking Accounts payable/Receivables

Below are the 5 steps in a successful implementation of your new accounting software solution:

1. Analyze, Plan and Understand – Start at the beginning. The first step in the implementation process should begin with a thorough review of your business requirements and processes, to identify what is working well and which aspects of your business that may need improvement and refinement. These business requirements will then be mapped into your project plan, which will drive the remainder of the implementation.

2. Design, Develop and Build – Using the project plan produced in Step 1, the implementation team will next proceed to customize the accounting software into an accounting process that fits your orgazation. This will involve creation of ledger accounts, vendors, customers, bank and cash balances, fixed assets, employees, payroll, etc.

3. Training – This includes teaching your staff the best practices and procedures to deliver the required functionality. Results from the training period need to be reviewed and a sign-off should be secured, stating that the progress made to date is acceptable and in line with the overall goals of the implementation.

4. Implement and Go-Live – Working from the knowledge obtained in Steps 2 and 3, your new accounting system should now be complete. Your legacy data is migrated a final time to the new system and all of the experience and resources of the project team are on-site and ready to make the final transition to the new system.

5. Ongoing Support – With the successful launch of your new system, your financial consultant should now continue to provide on-going support. This can be delivered through a help-desk, along with the application of any new updates. Many financial consulting companies provide after implementation support services in the process of executing your daily accounting tasks.

As these 5 implementation steps are carried out, beginning with a broad-based and all-encompassing perspective of both your internal and external operating environments, the focus of the implementation project is then continuously narrowed to produce exactly the system that is required to meet and exceed the business objectives that have been defined.

Need an accounting software solution to run your business and understand the METRICS behind the figures? Call or Whatsapp us on 0803 239 3958.

You have an article or review on any accounting software solution or related financial services you want us to publish, send to blog@skytrendconsulting.com.