5 things to think about before switching accounting platforms

Your accounting platform is a core foundation to your business and management decisions, working in combination with your broader finance function much like a high-performance racing car's engine and expert pit crew. Essential for navigating your business through financial tracks and ensuring a successful drive to its destination, it’s vital that your accounting platform is robust and fit for purpose – in the case of your business it should make it easy for you to access key financial information when you need it.

There are numerous platforms out there in the market, but we are big fans of Xero, a cloud-based platform offering a range of features and benefits that make it an ideal choice for many businesses.

Regardless of which platform you’re currently on, the decision to transition your accounting platform is a significant one that can impact your business operations and financial management (and if you are thinking of moving to Xero we suspect it will be a change for the better!).

In this blog we explore some of the essential factors you should consider before making the switch. We’ve written this based on a switch to Xero, but the points below will apply regardless of which platform you choose.

5 things to Consider Before Transitioning to Xero

1.     Now / Where / How

Before you think about any transformative or substantial systems change, take time to understand why you want to make the move, and what your ideal or perfect world solution looks like. From there you’ll be in a much better position to assess your options and ensure that which ever platform or tool you choose will be fit for purpose and help you improve your operational efficiency. We use our Now/Where/How framework to help us with this

Now: jot down all of the pains, frustrations, issues, with your current process//people/platform. Don’t hold back as the more detail you can identify now will ensure you don’t take those existing frustrations across to your new way of working

Where: Take note of everything you wish your system/ process / platform had or did. If people are involved, be sure to include what their role looks like, or how they’ll work. You might like to categorise these items as must-haves or nice-to-haves to help you in the next .

How: with your wish list, start investigating options that address as many of your must-haves and nice-to-haves as possible. This is where working with an external, neutral, operational efficiency consultant can assist you, as they’ll often have their finger on the pulse of the latest platforms, apps, features, and workflow solutions.

2.     Migrating Data

Before transitioning, consider how your existing financial data will be migrated to the new platform. Ensure that your current data can be smoothly transferred to Xero to avoid disruptions in financial reporting and analysis. Clean and organize your data beforehand, and consider seeking assistance from Xero-certified advisors to ensure a seamless migration.

3.     Integration with Existing Systems

Evaluate how well Xero integrates with your existing business systems, such as bank accounts, payment gateways, and other applications you rely on. These integrations were probably in your “Must-Have” list when you were painting your ideal world picture, so check if the required integrations are available and how easy it is to set them up. Smooth integration is essential for minimizing manual work and maximizing the benefits of using Xero. Again, an external consultant can often assist here.

4.     Training and Support

Transitioning to Xero requires proper training for your finance team and employees who will be using the platform. Familiarize yourself with Xero's learning resources, including webinars, tutorials, and help documentation. A Xero-certified advisor can guide your team through the learning process and provide ongoing support.

5.     Security and Data Privacy

When assessing which accounting platform you might like to use, you should familiarise yourself with its security measures and data privacy policies to ensure the safety of your financial data. Understand their encryption practices, multi-factor authentication options, data backup policies, and access controls to ensure compliance with your data protection standards.

Thinking of making the switch?

Transitioning accounting platforms isn’t a decision you make lightly, but there are a host of reasons why it might be right for you to make the move. With thought given to each of these areas you’ll have peace of mind that whichever platform you do choose meets your needs and will help you steer your business decisions in the right direction in the future.

If your current accounting platform or finance systems are causing you friction, it could be time for a tune up, or a transition. We can help you with either, our complimentary Now / Where / How review creates a space for you to step back and identify opportunities for improvement that will help you to turbocharge your operational efficiency, reduce waste, increase engagement, and achieve better business outcomes.

Already using Xero and want to confirm you’re leveraging the full power of the cloud to work smarter, not harder? Find out more about our Xero health check here.