Maybe you’ve been wondering about QuickBooks Online (“QBO”) for some time or maybe it hasn’t even crossed your mind. Either way, now is a great time to do your research and maybe even give it a try.
Why is January such a good time to switch to QuickBooks Online?
If you have a traditional January to December fiscal year, then you can start fresh with a clean QBO file. You can close out last year in your old accounting system and make peace with a complete set of records. Then, as you complete the year, you will have a new complete set of records in a system that is much more mobile and robust to meet your needs.
Do I need to close out my books in my old system before I start my new QuickBooks Online file?
Not necessarily, because you can go back and adjust your beginning balances once your prior year ending balances are finalized. However, if you want the cleanest possible records, it is best to reconcile in your old system so you can easily input your beginning balance sheet accounts.
This year is going to fly by.
It might seem daunting to start a new accounting system when you really won’t see major benefits until 12 months from now, but that time will fly by. You have to start somewhere, and if you don’t start now then you are seriously cheating your future self. You will feel so accomplished when you can run year-over-year reports easily and on the go, so you can always compare your current performance to what you’ve experienced in the past and adjust accordingly.
Even if you can’t get started on January 1, it’s never officially too late. If your business has a high volume of transactions, it might be too difficult to rebuild records all the way back to the beginning of the year. Just be aware that this will take extra time for your accountant to consolidate reports out of two systems at year-end and you could be charged for the extra time.
As always, don’t hesitate to reach out if you have further implementation questions or if you just want to discuss the benefits of QuickBooks Online.
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