Computerised accounting systems

• The transfer is planned: choose the system, set up the chart of accounts and ledgers, train staff, decide the changeover date and method.
• Changeover methods: direct, parallel running, pilot and phased. Each balances cost against risk.
• Opening balances are entered at the changeover date, usually a period end, after the old records have been balanced and reconciled.
• Integrity is protected by control totals, agreeing the trial balance before and after, reconciling control accounts and the bank, backups, test data, access controls and training.
• Knowledge of a particular software package is not required.

Plan, set up, change over, review

A typical transfer follows these stages:

• Plan: decide what the system must do, choose the software and hardware, set a budget and a timetable, and name who is responsible.
• Prepare the old records: bring the books up to date, balance every ledger, prepare the trial balance and reconcile the bank, sales ledger and purchases ledger control accounts. Errors must be cleared before transfer, not carried into the new system.
• Set up the new system: the chart of accounts (codes for each ledger account), customer and supplier records with credit limits and terms, inventory records, VAT or sales tax settings, user accounts and passwords.
• Train staff before the changeover date.
• Enter opening balances at the changeover date (usually the start of a month or the financial year), and check them.
• Change over by the chosen method, then review: compare the first month’s output with expectations and fix problems.

Complete and accurate

complete accurate secure