4 minute read
Switching to a new financial software
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.
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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 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
considering: budget, timescale and complexity.
Do you have a tight timeline and budget to go live on the new system?
Will you still have access to your legacy financial instance for historical reports?
Do you have an option to store your historical details in a separate system or a database?
Discuss these issues with your software partner – you may wish to consider bringing in monthly trial balances for the past couple of years, for comparative reports, rather than detailed historical transactions.
Currency Exchange and Consolidation
If the retail or any other part of the organisation is currently operating internationally, recording multiple types of foreign currency exchange rates can create a myriad of requirements from a financial system. Ensure that the system you select offers the continual update of exchange rates that is crucial to maintaining proper books that can have the appropriate foreign tax rates applied during financial closing.
‘Go Live’ Timing
Choosing the optimal time to go live is the final crucial aspect to consider, particularly with sporting seasonal peaks and troughs of activity. The first day of a month or quarter or year can often seem like the logical choice, but that means closing books in your old system at the last day of the previous year or quarter, which isn’t always practical. Assess your business and choose a timing that works strategically and practically for you and your team. An experienced partner will work with you to agree a detailed project plan to achieve the target date. Understand your current close process and what a cutover will mean for your users and operations and ensure these are factored into the plan for a seamless and successful transition.
By considering these steps, you will have increased peace of mind knowing that your organisation is following tried and tested best practices. At Eureka Solutions – with customers including Juddemonte Farms, The Ageas Bowl, St Andrews Links Trust, Derby County Football Club and Powerleague Fives – we pride ourselves on sharing learnings and best practice from the hundreds of successful transitions we have implemented for our customers, moving them from legacy systems to futureproof technology and managed by our experienced project management and implementation teams.
A well planned and well-timed financial cutover will allow you to focus on getting the most out of your new system straight away, speeding up ROI and user adoption and allowing you to focus on business growth and strategy. ◆
