How to set up new accounting software for your small business

A crucial part of setting up a new business and ensuring its long-term success is by managing finances effectively. To do this, you’ll want to invest in and operate with accounting software that makes this process smoother for you and your business

Setting up new accounting software can feel like a daunting task, but it doesn’t have to be. With all the tools of today available at your disposal, it’s easier than ever to choose an accounting software that meets your requirements. 

In this guide, our experts will walk you through the practical steps of implementing a new system, from identifying your business’s requirements to ongoing adjustments as your operations evolve. 

But first, let’s explore why you may want to set up a new accounting system to begin with. 

Reasons for setting up a new accounting system

There are many reasons why you may want to set up a new accounting system, with some more fundamental than others. You may, for instance, simply want to formalise your accounting processes for the first time, or you may want to upgrade to a system better suited to your needs.

Then again, you may also feel that you need to keep adapting to the demands of a growing business, and that accounting software will help you. 

Using a system better suited to your business

No matter what business you’re in, the chances are that your venture will evolve rapidly as your business grows. 

This is where it can be particularly cumbersome to have an accounting system that either has limited functionality, outdated software or doesn’t integrate well with other key tools.  

Here, switching to a more advanced or specialised system can mean that you streamline your operations and consequently reduce errors with your accounting. In the process, you’ll likely learn more about your business with the help of greater financial insights. 

Formalising your accounting for the first time

If you’ve been managing finances manually or relying on basic tools like spreadsheets, implementing dedicated accounting software is a big step forward. 

Not only will formalising your accounting system mean you’re better organised, but it also means you’re less likely to run the risks of non-compliance with accounting regulations. It can also save you a lot of time in the long run. 

Tailoring your accounting system as your business grows

Growth is what every newly set up small business is striving for. But it also brings new complexities and potential complications for businesses that are stuck with an accounting software that is not scalable. 

Put simply, what worked when you were starting out may not suit the challenges of an expanding business. At the very least, you’ll have to handle increased transactions, manage an expanded payroll, and forecast future revenue to account for new business. 

A scalable and future-proof accounting system will allow you to customise features to suit your business wherever it finds itself. Whether that’s integrating automation, adding multi-currency support, or generating detailed reports. 

How to implement a new accounting tool

Now you know why you may want to set up a new accounting system, the next step is understanding how to implement it effectively.

Following these six steps is a good way to get started.

Define your business needs in accounting

Before selecting and implementing new accounting software, you need to understand what your business truly requires. A good place to start is by reviewing your existing accounting processes and identifying areas of strength and weakness. 

Consider the specific challenges your business faces, such as managing cash flow, tracking expenses, or handling payroll.

Think about your goals too, and what you’re looking for with your accounting software. For example, are you looking to improve efficiency, or are you just wanting to gain deeper insights into financial performance?

In some cases, you may simply be wanting to ensure compliance with industry regulations. By mapping out these needs, you'll create a clear picture of what your ideal accounting system should deliver.

When you’re assessing your need, it’s always a good idea to engage with your team as they’ll have valuable insights into daily operations. Their input can help you identify pain points and opportunities that might otherwise go unnoticed. 

Decide upon which accounting system best fits your business

Once you’ve outlined your needs, the next step is to evaluate and choose the right accounting software. 

Begin by researching tools designed for businesses of your size and industry. You’ll especially want to consider factors like ease of use, scalability and cost.

As well as this, take into account whether the software supports automation for routine tasks like invoicing or expense tracking, as this can save significant time. It may also have features, such as multi-currency support, that are perfect for specifications like international trade.

It’s also essential to consider compatibility with other tools you’re already using, such as your CRM or inventory management software. An integrated ecosystem means less duplication of work and a generally smoother workflow.

Finally, look for reviews, testimonials, and case studies from businesses similar to yours. Better yet, request a demo or trial period to explore how well the software meets your requirements before committing.

Conduct a data cleanse of all your finances

Before migrating to your new accounting system, it’s essential to clean up your financial data. This ensures the new system starts off on the right foot, free from clutter or inaccuracies.

To do this, review all of your records, such as customer and supplier data, as well as transaction histories and balance sheet accounts. 

Review all your records, including customer and supplier data, transaction histories, and balance sheet accounts. Then, identify and remove outdated or irrelevant information like inactive accounts or old customer records. 

This will mean that only accurate and relevant data is carried forward with your new accounting software.

Remember, quality over quantity is key. Only import what’s essential for your new system. Taking the time to declutter now will save you headaches later and make your new accounting software more efficient from day one.

Don’t try to replicate your existing system

If you’ve got an accounting system that’s currently working relatively well, it’s tempting to do all you can to replicate this new system when switching to a new setup. 

However, this can be counter-productive, as doing this will not only carry over the successful points from your previous software, but also the inefficiencies. Starting with a new accounting software should be best viewed as a clean slate. 

View this as an opportunity to rethink how your finance team operates. In particular, question why certain processes are in place and whether they still make sense. You won’t get a better chance to streamline your operations and modernise your approach.

Most modern accounting systems, like QuickBooks, should offer advanced features and integrations that can simplify your workflows and empower your team. If you stick with the old ways then you may be missing out on these benefits. 

Test and train for your new tools

Implementing a new accounting software isn’t as simple as just setting it up and watching it work. It takes thorough testing and training to make sure that you make the most of all the potential benefits on offer. 

Before going live, set aside time to ensure the system works as expected and meets the needs of your team. Start with structured testing phases, such as Beta testing, where the project team verifies basic functionality and configurations. 

Follow this with User Acceptance Testing (UAT), where everyday users simulate real-life scenarios to ensure the system operates seamlessly in practice. This phase is crucial for identifying and addressing any issues before full deployment.

Meanwhile, you also have to think about your team, who also need to feel comfortable with using the new software should they be using it. Running an effective programme will give your employees the chance to use all the new features and get to speed with how their workflow will change. 

Offer a mix of hands-on sessions, user guides, and on-demand resources like videos or FAQs to cater to different learning styles. Remember that this is also an opportunity to show how the new system will make day-to-day tasks easier and more efficient. 

Continue to tailor your system as your business grows

Once your new accounting system is live, don’t stop there. Treat implementation as the beginning of an ongoing journey rather than a one-time project.

As your business evolves, so will your needs. Regularly review your system to ensure it continues to meet your requirements. Explore features you may not have fully utilised during implementation, such as advanced reporting, automation options, or integrations with other business tools like payroll or inventory management.

Devoting time to continuously refining your system and staying up to date with new features or updates will ensure it remains a powerful asset that supports your business’s long-term success.

How can a new accounting system benefit your business?

There are a number of benefits to introducing a new accounting system to your business. As well as automating routine tasks like invoicing and expense tracking, it also frees up a portion of time that you can spend on what really matters: growing your business. 

As well as this, a modern accounting system will also offer real-time insights into your financial performance, and enable you to make data-driven decisions that make profitability more likely. 

Put simply, the right software will streamline your operations and provide you with the financial clarity you need to succeed.

Keep control of your finances with Quickbooks

If you're looking for an all-in-one solution that balances ease of use with powerful features, QuickBooks accounting software is an excellent choice. 

Our intuitive software is trusted by 6.5 million subscribers worldwide for its varied toolset and ease of use. It enables easy automation, customisable reporting, and seamless integrations with other essential tools.

We also offer tools to manage cash flow, track income and expenses, create invoices, and prepare for VAT compliance in line with HMRC’s Making Tax Digital rules. We’ll save you time and reduce your administrative burden.

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