Cloud accounting is rapidly becoming many companies’ de facto method of choice. According to Gartner Research, 85% of companies expect to adopt a cloud-first strategy by 2025.

However, shifting your accounting system to the cloud can be challenging. It is common for companies to question whether they have the right people, skills, and technologies to undergo a digital transformation of this magnitude. Others wonder if they can continue as they are and hope for the best.

The following ten steps will help you transition to cloud accounting.

10 Steps to Transition to Cloud Accounting

You will need to invest time, effort, and research in moving your accounting to the cloud. As your company shifts to cloud accounting, engaging a consultant who can assist you is also helpful. You can break down the project into the following ten steps.

Step 1: Assemble the Right Team

Initially, you might think that only IT people should be part of the cloud accounting selection team. Still, the team needs to include representatives from all major departments that will use the system. This includes accounting and finance, marketing, sales, and operations, as well as IT.

Step 2: Find an Executive Sponsor

An executive sponsor is someone on the executive team who supports and advocates for your team’s needs. Additionally, they will assist with the budget for the cloud accounting system you choose.

Step 3: Clear the Team’s Schedule

The selection team members should have enough time to work on the project. Providing them with enough time to gather requirements, interview vendors, attend demos, and more may require shifting some of their duties.

Step 4: Create a Wish List

List all the features you want in your new cloud accounting system. Everything from standard accounting functions to automated reporting or reimbursement may be included in this list.

Step 5: Don’t Limit Yourself

Your wish list shouldn’t be limited to what you have in your current system. Discover what newer cloud accounting systems offer by exploring different systems. When choosing a cloud-based system, ensure it doesn’t mirror your existing system. This is the time to update and upgrade your system.

Step 6: Understand System Dependencies

Here is where your IT team’s assistance is invaluable. They can assist in understanding and evaluating system dependencies, such as existing office productivity software or other remote systems that you must integrate with the cloud accounting system.

Step 7: Assess Reporting Functionality

Additionally, it’s important to determine if the new system can handle the types of reports you’ll need. You can customize some accounting systems easily with add-on software that builds custom reports or enables users to build reports as needed if they do not have custom requirements.

Step 8: Evaluate Security

The security offered by cloud accounting platforms is exceptional. Still, you will have to fully understand the security options provided and explain them to others in your company before the new software is approved.

Step 9: Allow for Adequate Training

Allow everyone to take part in training so they can become familiar with the system’s new features. You should ensure that someone who knows the software, such as a team member or an implementation company representative, can troubleshoot, teach, and answer questions.

Step 10: Make the Switch

If you decide to switch to cloud accounting, do it completely. Running two systems simultaneously during the transition is not a good idea. This can quickly lead to data redundancy and missing information as the systems can rapidly become out of sync. Prevention is better than cleaning up afterward.

ASI Is Here to Help

Making the switch to cloud-based accounting can be both exhilarating and daunting, but once you start using the new system, you’ll wonder how you lived without it. And you don’t have to do it alone. We’re here to help you make the switch as painlessly as possible. Contact us today to get started.