6 Questions to Prepare You for an ERP Conversion

When your business hits a growth spurt, it’s time to evaluate your ERP/accounting system to assess if the current software can accommodate changing needs. Once you and your software partner determine your company will be best served with new software solutions, you’ll need to plan your ERP conversion approach.

Coffee-break-demo - Micro Accounting

Here are 6 important questions to help you prepare for an ERP conversion:

  1. Should we change our Chart of Accounts (COA)?
    As your company grows, you will need a COA that can handle more extensive financial reporting and aid in greater decision-making capabilities. Before migrating to a new system, map the old account to the new account. Note that to bring historical transactions to the new account, you may need to map old accounts that you no longer use. Tip: To avoid data conversion challenges, do not map a single old account to multiple new accounts.
  1. How much historical data should we convert?
    The greater amount of data you bring to the new system, the greater the cost—in both time and money, so be selective. Most companies choose not to carry many years of General Ledger history but bring open transactions balances for Accounts Payable and Accounts Receivable, open sales and purchase orders, and inventory balances. If you are worried about losing crucial data, ask your ERP partner how long you will be able to access your old system.
  1. Which reports should we migrate to the new system?
    Business intelligence is more important now than ever. Be aware, though, that your company may have multiple reports containing the same data. To alleviate confusion and file clutter, analyze the reports you have generated, and only carry over those related to the current month or other pertinent data.
  1. Which software, modules, and features do we want to integrate with our new system?
    Many of today’s systems can integrate with websites, sales tax, credit cards and many other important features. Review your current integrations and identify which ones have been the most useful to you. Next, consider additional options that can help your team operate more efficiently. Implementing integrations requires minimal configuration, and the result can save you so much time! Tip: Implement new integrations after you go live with the new software so users first have a chance to become familiar with the new system.
  1. What are the new system’s hardware requirements?
    Companies are turning to the cloud for freedom from businesses of clunky, expensive machines. If you choose a true cloud solution, the hardware requirements are minimal. Even many on-premise products remove equipment from the equation by providing hosting in a data center. Tip: Choose off-premise servers for greater security and reduced costs.
  1. When we implement a new accounting system, should we go live with all companies at once, or one or two at a time?
    Most businesses find it more efficient to implement only one or two companies at a time. This allows the team to become acquainted with the new software before bringing over the remaining companies. Also, any post go-live issues can be resolved more quickly when isolating a control group of a smaller number of companies.

Overall, be prepared! Make sure you discuss all of these questions with your ERP partner before converting to a new ERP system! Please contact us for assistance with this process.