Advice needed on the practicalities of switching accounting software

[Jennie Wilson]

Hi Guys.

Im new to this forum, and appreciate there has already been a lot of threads on setting up a bookkeeping business (as I am doing). However I do have one unanswered question... forgive me for being obtuse...

When I attract new clients 2 situations could arise (1) they could be using manual accounts (2) they will be using a different software package to the one I intend to use. Say if I start doing the bookkeeping from 1st Oct, should I just start from then on my software or should I re-enter all transactions from April (tax year) or even their business' previous year end.

It may ba a stupid question, but i'm thinking along the lines of ease of tax computations for the year, as well as monthly profit and loss, and year to date profit and loss.

OR do I simply enter opening balances into the nominal onto the new system, from the closing figures at 30th Sept that the business holds?

Responses will be much appreciated. I suppose, I am feeling confident with book-keeping in general, but the initial start-up and set-up confuses me a little.

Thanks Guys

Jen

 

[dp0848]

Hello Jen

I would just enter the opening balances in to your software and work forwards from there. However you'll still need access to the old software for detail e.g. you may have an opening debtor balance of £2,367 but what makes up that balance?

Regards.

David.

 

[ARK]

i'd agree with David and just enter the opening balances, but make sure you have back up/breakdown for each figure you do enter

 

[Jennie Wilson]

Thanks for the advice guys, but surely if I take this approach there will be vast teething problems, if say the person who has been doing the books up to now wasn't a professional. Would I have to investigate the system that has been being used up to this point to ensure everything had been posted correctly. For examples sake, a bill for 12 months that should be prepaid, but has just been posted as a regular invoice, then this charge wouldnt show on a monthly basis in my new accounts and therefore my p&l wouldnt be accurate. Sometimes its more time consuming redoing errors than starting afresh.

Sorry if im being a nut, lol

Jen

 

[ARK]

switching systems is never easy, like the example you just quoted if the amount is material then you may need to investigate, otherwise make a judgement call. unless you can find a simple way/programme to tranfer the old data

 

[sheelagh]

I think you shouldn't worry too much about this until you actually find yourself in this situation, then you can assess each case individually. There are endless scenarios to taking on new clients, but discussions with the client, and a review of their existing records will help you to decide a plan of action.
If you are just setting up, you might find that you have time to visit the client's office to tidy up any loose ends on their system before transferring to your own software. If you are appointed close to the start or end of the financial year, you might agree with the client to back track a couple of months, or start at the beginning of the next financial year. Either way, you could still have opening debtors and creditors and bank rec to deal with.

Good luck with your venture