How to Migrate from Traditional Accounting Software to the Cloud

With new technology, more and more accounting firm owners ask themselves that maybe the time for their traditional accounting software migration to the cloud has come. Not all of them are able to decide on this because cloud migration sounds complicated and confusing. But, we want to say that, in reality, with today's rapid evolution of technology, such a transition has never been easier for your business.

Practically many accounting firms now have cloud-based accounting software. And, your customers may demand services that can only be delivered to them through the cloud by your firm. If you want to stay competitive and satisfy expectations, not only for present but also future clients, moving to cloud accounting software is the best option.

In this article, we share some tips on how to move your accounting firm to the cloud quickly, efficiently, and with the least headache.

01 | How to Understand the Time to Move From Traditional to Cloud Software Come

To understand when it might be time to transition to cloud accounting, take a glimpse at the problems and inefficiencies in your existing system. Frequent software delays or outdated functionalities are typical signals for upgrading. With traditional accounting systems, changes may not always be available; such practice invites errors or misinformed decisions into the picture, especially in rapid environments.

Other signs include limitations to remote access. If your team is bound to on-site work, that could be inhibitive to collaboration or productivity, especially when hybrid models of working have become more prevalent. Cloud bookkeeping allows access anytime, anywhere, which is very important for any modern accounting firm.

Traditional accounting software is also expensive to maintain. Expenses related to upgrades, IT support, or even server maintenance add up over time, while cloud solutions are more budget-friendly since updates are included in their subscription plans.

Security problems can prompt migration as well. If security for client data stands out as the utmost interest, then migration to the cloud may ensure more security.

Finally, evaluate your firm and existing software's scalability. If the present accounting software is not able to scale with the growth of your clients or the volume of work, the flexibility of cloud software provides a seamless solution for expansion. By recognizing these signs early, you'll be able to move to the cloud proactively and maintain your competitive advantage.

02 | Challenges and Considerations Before Switch to Cloud Accounting

Migrating to the cloud accounting platforms requires a lot of forethought and consideration regarding several potential challenges. Knowing your current situation and how to handle potential problems will help make it a smoother transition.

Compatibility

Migrate after ensuring that the chosen cloud solution will be compatible with the present system. Not all data or processes can fit in new software; thus, it requires some kind of adjustment. Assess whether or not the tools you are presently using can integrate with the cloud platform.

List Current Features

Make a list of your current features. Invoices, reporting, payroll management, or other functionalities you use in your current software. This helps identify the key features to be used in the new cloud solution.

Analyze Efficiencies

Assess what is your current accounting software and the related workflows that involve this. Identify limitations and find ways to improve the processes. Identify any processes that are taking too much time or causing errors. For example, manual data entry and/or delayed updates may need to be addressed with automation.

Training

This will definitely require your team to undergo some form of training to become familiar with the new software. Invest in training that will help your staff become acquainted with the new system. Ongoing support, like access to tutorials or dedicated training sessions, is also a consideration.

Temporary Downtime

Migration may cause temporary disruptions. Plan your migration strategy carefully so that you minimize the impact on your firm's operations; communicate with your clients in advance so that their expectations are managed during the transition period.

Data Security

Ensure that the provider is compliant with any relevant regulations, which can include GAAP and IRS standards and possibly even GDPR. Check the provider in regard to security certifications along with data recovery options.

Costs

While cloud solutions save money in the long run, there are initial cloud migration challenges and costs, such as training and data transfer. Calculate the total cost of ownership to avoid budget overruns.

03 | Steps to Transition to New Cloud Accounting Software

How to move from one accounting software system to another smoothly? Migration to any form of cloud base accounting software should be structured. Each phase of the accounting data migration and process is highlighted below with clear steps and best practices that one can follow.

Choose the Right Cloud Accounting Software

Research different cloud solutions. Look into the features, pricing options, and customer support options of each cloud solution you consider. Choose special cloud based accounting software for CPA and accounting firms. Opt for services that can provide scalability and compliance support with great customer service.

Plan the Migration Process

Draw up a very detailed migration plan. Clearly state the objectives that are to be realized, timelines, and milestones. Outline the different roles that different team members are expected to play to ensure accountability. Add contingency plans for when something goes awry, such as a delay in data transfer, loss of data, or other possible compatibility issues.

Prepare Your Team

Involve your staff as early as possible in the process. Provide training sessions and resources to help them understand the new system. Listen to and address any fears or resistance they might have. Encourage feedback throughout the training to identify possible gaps in understanding.

Migration Data to Another Accounting Software

Export the data from the current software and import it into the cloud solution using migration tools provided by the software vendor to ease the process. Verify the accuracy of the data after transfer. Focus your efforts on cleaning up old or irrelevant data from current system before migration so that it doesn't clog the new system.

Test and Validate the System

Perform some testing of the new system before completing migration: make sure all functions work right and data is intact. Work out the bugs before going live. Do pilot runs on a small subset of your clients in order to have the chance to identify and solve problems early.

Go Live and Monitor the New System

Once the testing is complete, go live with the cloud software in your daily business operations. Monitor performance closely for the first few weeks and fix any glitches right away. Gather feedback from your team and clients on how to refine workflows for seamless adoption.

Involve Clients

Inform the clients of the migration and how it would affect their services. Allow the clients to get comfortable using the new client portal, allow usage, and let feedback be given to further enhance the usability.

04 | Common Mistakes to Avoid in Time Cloud Accounting Software Migration

While migrating to the cloud, one can easily miss out on some of the key aspects that might further lead to problems. Being aware of common pitfalls saves time and resources.

Skipping Backups

Always backup in advance of migration. This ensures that if there are errors, you will have something to revert to. Store the backups well and check on their accessibility before the commencement of the transfer.

Insufficient Training

Without proper training, your team might not be able to adapt easily. Invest in training so that the transition is smoother. Give extra support during the first stages to handle any challenge as it comes.

Rushing the Process

Do everything step by step. Rushing will surely bring some errors or omitted details. Such a phased approach helps minimize risks and provides a transition that's easier to handle.

Ignoring Security Reviews

Not all provider of cloud bookkeeping services​ offer the same level of security, so be sure to check their certifications for compliance with industry standards. Perform routine security audits post-migration to ensure ongoing protection.

05 | Conclusion

This transition into cloud accounting software is an indispensable move any CPA and accounting firm should make for practice modernization. Although the transition requires quite a lot of careful planning, the rewards from making the transition are great compared to the challenges one faces in such migrations. Cloud bookkeeping software​ provides great efficiency, enhanced accessibility, and strong security. 

That solution needs your business to be successful in the accounting industry. If you decide to switch to cloud accounting, contact Eleven experts who will help you in implementing high-quality and reliable accounting software.

Begin now and stay ahead in this changing accounting world.

06 | FAQ

What should I do in case data is lost while migrating?

Contact your cloud provider's support team immediately. Yet another reason why backups are critical.

How long does migration take?

This depends on the size of your firm and how complicated the data is, but in general, it will take a few weeks.

What do I need to look for in cloud software?

Focus on scalability, security, and features relevant to CPA firms and accounting, such as tax compliance tools and real-time reporting.