FINANCE
Switching to a new financial software: Six steps to guarantee success When moving to a new financial system, planning a seamless changeover or ‘cutover’ between your old and new system becomes a key component for success, and can have a significant effect on user adoption and speed of return on investment. You can invest in modern, stateof-the art technology, but without your essential and accurate data, the system may not provide more of a headache than added value. So how do you plan for this crucial activity effectively?
Here we have a look at the six key areas to consider when performing a financial cutover. Addressing these areas will set you well on the way to achieving a successful financial software implementation. Restructuring the Chart of Accounts (CoA) Moving to a new system is often a great opportunity to take stock of your existing Chart of Accounts, clean up old and inactive accounts, and restructure to get the most out of your new financial solution. For example, a modern platform should offer dynamic and multiple segmentation options, therefore negating the need for unnecessary accounts just to be able to report on what you need to. You can start planning this activity very early in the process, with just a basic understanding 20 | OTFF ISSUE 15 ★ APRIL 2021
of the new platform. The closer you keep in touch with your partner the better throughout this process. Single Entity vs. Multiple Entities If – as is the case with most venue and sport businesses - you have multiple operating entities, your planning may need to include additional factors, such as your existing set up. Are you currently on multiple financial or disparate financial systems (for example, if you have a retail or conference arm at your venue or club using a different system from the parent company)? Do any of your entities have separate CoA or any statutory needs for such? Does your new system support a single platform and single consistent CoA for consolidation and reporting? Planning to bring over data in an integrated, consistent manner across all your entities is essential depending on your project goals and objectives. Again, an experienced partner will guide you through this.
Closed vs. Open Transactions To go live with your new system, the most straightforward approach to a financial cutover is to only bring in opening balances and your open transactions. Closing off as many transactions as you can in your legacy system helps limit the number of open transactions to be migrated. The simpler the data, the easier the changeover. If your organisation has specific business needs to bring in closed transactions details for a certain period in the past, then assess the impact of this with your partner early, to make sure your implementation plan has adequate budget and time factored in to support this requirement. Historical Transactions vs. Trial Balances Another key consideration is how much historical data there is to migrate from your legacy system to your new system. While the idea of having an exhaustive data history in your new system can be attractive and comforting, there are a few factors worth
