Switching accounting software is often put off because it feels complicated. Data migration, learning a new system, and the fear of losing transaction history all make businesses stick with software they have outgrown or are unhappy with. In practice, a careful switch is manageable and often well worth the disruption.
When Is the Right Time to Switch?
The best time to switch accounting software is at the start of a new financial year. Starting fresh means you bring in opening balances rather than mid-year transactions, which is simpler and reduces the risk of duplicated entries.
If you cannot wait until your year-end, switching at the start of a new quarter is the next best option. Avoid switching in the middle of a complex period such as a VAT quarter end, year-end, or payroll run.
What Data Do You Need to Migrate?
Before you start, make a list of what data you need in your new system. This typically includes:
- Chart of accounts — the structure your income and expenses are organised under
- Customer and supplier contact records
- Outstanding invoices — both unpaid sales invoices and bills you owe
- Opening balances for bank accounts, assets, and liabilities
- Historical transaction data if you need it visible in the new system
- Payroll records if switching payroll provider at the same time
Not everything needs to move. Many businesses keep their old software accessible for reference rather than importing all historical transactions into the new system. What matters is that your opening balances are accurate so your reports make sense going forward.
Export Your Data From the Old System
Before cancelling your old subscription, export everything you might need. Most accounting software allows you to export customer lists, supplier lists, and transaction data as CSV files. Run and save copies of key reports — profit and loss, balance sheet, aged debtors, aged creditors — for each completed year.
Store these exports somewhere safe, such as a cloud storage folder. Even if you never need them, having them costs nothing.
Check MTD Compliance in the New Software
If your business is VAT-registered, confirm the new software is on the HMRC-approved list for Making Tax Digital before you switch. Switching mid-VAT-quarter without a compliant system could create a compliance problem. See our full guide on Making Tax Digital for VAT for details on what is required.
Set Up the New System Before Going Live
Do not cancel the old system until the new one is ready. Set up your chart of accounts, enter your opening balances, add your bank account details, and run a test invoice through the system before you start relying on it for live transactions.
Most accounting software providers offer migration support or setup wizards. Use them. Some offer free onboarding calls — take the call even if you consider yourself technically confident, as it will surface things you might otherwise miss.
Enter Your Opening Balances
Opening balances are the financial position of your business on the day you start using the new software. These include bank balances, amounts owed to you by customers, amounts you owe to suppliers, and any assets or loans on your balance sheet.
If you are switching at year-end, your final year-end accounts provide these figures. If switching mid-year, your accountant can help you produce an accurate set of opening balances.
Getting these right is the most important part of a migration. Incorrect opening balances will cause reports to be wrong until they are corrected, which can be time-consuming to untangle.
Migrate Customer and Supplier Records
Most accounting software allows bulk import of contacts via CSV. Export your customer and supplier lists from the old system, check the format required by the new system, and import them. This saves manually re-entering hundreds of records.
Reconcile Before Committing
Once your opening balances are in and your first transactions have been entered, run a reconciliation against your bank statement. Check that the balance in the software matches your actual bank balance. If it does, you have migrated successfully. If not, review your opening balances for errors before going further.
Keep the Old System Running Briefly
Keep your old subscription active for at least a month after switching. This gives you a reference point if anything looks wrong in the new system, and allows you to cross-check figures. Once you are confident the new system is accurate, cancel the old subscription and retain your exported data.
Tell Your Accountant
Let your accountant know you have switched before they next need to access your records. Give them access to the new system and confirm they are comfortable with it. If your previous software gave your accountant direct access, set up equivalent access in the new system before you need it urgently.
If you are considering switching but not sure whether your current software is the problem, read our guide on how to choose accounting software for your UK small business.
