Switching accounting software isn’t just a technical move. It’s a business choice that affects your finances, workflows, and even your team’s day-to-day processes. Maybe your current software can’t grip your growth, or perhaps you’re eyeing better automation. Whatsoever the reason, there’s a lot to weigh before making the leap. Here’s what you need to know.
The Real Cost of Switching
Let’s start with the most obvious: money. Implementing a new accounting system isn’t just about the sticker price.
Upfront vs. Long-Term Costs
According to Gestisoft, the cost of implementing new software varies widely depending on business size, needed features, and level of support. It’s not unusual for costs to balloon due to hidden expenses like:
- Data migration services
- Software customization
- Training sessions for your staff
- Ongoing support or subscription fees
Missing any of these in your budget plan can cause some unpleasant surprises later.
Cloud vs. On-Premise Considerations
The accounting software market is booming—it’s expected to hit $19.59 billion by 2026, up from $12.01 billion in 2020. Cloud-based solutions are driving much of this growth. As of 2020, 78% of small businesses had already moved to the cloud.
Why? Lower upfront costs, fewer maintenance headaches, and flexibility. But cloud migration isn’t always easy. According to Deloitte, how you migrate—whether through rehosting, replatforming, or rebuilding—affects the complexity and cost classification (capital vs. expense).
Compatibility with Your Existing Systems
Changing software doesn’t happen in a vacuum. Will your new system talk to your other business tools? Think payroll, inventory, CRM, and more.
Integration Woes
If your systems can’t sync, you’ll face duplication, confusion, and delays. This isn’t just frustrating—it costs time and money.
ERP systems in particular can be expensive and hard to integrate smoothly, especially for small and medium businesses, according to Digital Salla.
The Data Migration Maze
Let’s talk about data. Moving it from one platform to another isn’t plug-and-play. Mistakes here can lead to major headaches.
Common Pitfalls
- Formatting mismatches
- Missing transactions
- Historical data loss
- Delays in go-live timelines
Digital Salla points out that data migration errors are one of the most common issues during implementation.
Before you flip the switch, audit your current records. Back everything up. Have a detailed migration plan that includes mapping old fields to new ones.
Need more help? These tips for accounting migration can help you avoid major roadblocks.
Training: Often Overlooked, Always Necessary
Your new software won’t be helpful if no one knows how to use it.
Why Training Matters
Training gaps are a frequent cause of inefficiencies and incorrect usage. Even the best system won’t deliver if your team doesn’t feel confident navigating it. One study published in the Quantum Journal notes that inadequate training and support are major barriers to successful implementation.
Ask your vendor about:
- Onboarding programs
- Training documentation
- Ongoing support plans
- Peer user forums or community access
Don’t treat training as optional. Budget for it.
Vendor Reputation and Reliability
Choosing the right software is only half the job. Choosing the right vendor makes the difference between a smooth implementation and a nightmare.
Questions to Ask
- How long have they been in business?
- Do they specialize in your industry?
- What’s their track record with companies your size?
- Do they offer 24/7 support or just business hours?
User reviews and expert comparisons can give you insight. So can directly asking for customer references.
Timing Your Switch
There’s never a perfect time—but some are better than others.
Plan Around Your Calendar
Avoid switching mid-fiscal year. The best time? Right after your year-end close. You’ll start fresh with clean books and minimal disruption.
Also, consider your staff’s workload. Rolling out a new system during peak business times is asking for burnout.
Think About Audits
If you’re on the verge of an audit—or even just want to be ready—switching systems could complicate things. It’s wise to prepare for a business audit before you make any big system changes.
Final Thoughts
Switching your accounting software isn’t just a tech project—it’s a business initiative that touches every corner of your company. From cost and compatibility to training and timing, the decisions you make now will ripple for years to come.
Here’s a quick recap:
- Budget for more than just the software—think training, support, and migration.
- Check that your new system plays nicely with your existing tools.
- Plan a thoughtful, well-executed data migration.
- Invest in training so your team isn’t left guessing.
- Vet your vendor carefully.
- Choose the right time to switch, ideally around your fiscal year-end.
Take your time. Ask questions. Map it out. Your future financial health depends on getting this right.