How To Implement An Accounting System In 3 Basic Steps

An accounting system integrated in to the business processes of a company is an excellent way of automating financial information and creating a more efficient infrastructure. This is especially true for switching from manual or ledger based accounting systems to a software based one. Successful implementation of such software can be lead by a dedicated project leader to ensure smooth operations. Here are a few steps in which you can implement such a system.

Choosing a suitable system

ERP systems need to be chosen with caution and much evaluation. You could also hire an accountant from outside to review the procedures that are needed and suggest any opinions or suggestions that can further improve the systems and help the company. Reviewing the advantages and disadvantages along with the consequences of changing from one medium to another will bring in a lot insight and understanding to the overall implementation. Suggestions will also have to be taken from the existing employees and financial department as their input will have a lot to do with their hands on experience on day to day accounting activities.

Planning the process

It is important to identify a project manager for the implementation process as this will help in the smooth transition of the two accounting platforms. Enterprise resource planning is a time consuming procedure and a person who has extensive experience in overall company project management, knowledge in the company accounting practices and IT support will help run this system smoothly from start to finish. The transition of accounting systems will also require special training to be given to the employees, department heads and so on. Therefore, keeping them informed well ahead of the implantation process will save time on any transitional mishaps.

Budget and design of the system

The accounting system software will have to be customized as per your company accounting requirements, thus an ERP system designer needs to be consulted for you to help understand and implement the new features and variables that you need. According to different vendors, the design and customization costs can vary due to various specifications or special functions that are required. Some companies may require different types of accounting systems to various departments. Then this would need a separate training program and training manual for each department to help with the technicalities. There are also some systems that come in packages where up to certain levels of customizations, it would be a fixed price overall. Therefore, it is necessary to research on the various accounting systems and reliable vendors available.