{"id":7309,"date":"2017-06-30T08:43:49","date_gmt":"2017-06-30T12:43:49","guid":{"rendered":"https:\/\/foundationsoft.com\/?p=7309"},"modified":"2025-04-14T10:12:32","modified_gmt":"2025-04-14T14:12:32","slug":"change-accounting-software","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/change-accounting-software\/","title":{"rendered":"When Is the Best Time to Change Accounting Software?"},"content":{"rendered":"

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Let\u2019s say you\u2019ve decided to switch accounting software<\/a> for your construction business. Do you have to do it at year-end? Is it ever OK to change mid-year? If getting new construction accounting software is the right move for your business, there\u2019s no single right answer about when \u2014 but certain times can make it easier on your business to implement a new accounting system successfully. Here are some considerations to help you plan your timeline.<\/p>\n\"UG<\/a>\n

<\/span>Do you have to start on January 1?<\/span><\/h3>\n

There are several advantages to starting January 1 in a new accounting system, but there\u2019s no requirement to do so. First, 65% of publicly traded companies<\/a> in the United States use the calendar year as their fiscal year. For these companies, the benefit is that they won\u2019t have to carry over part of the year\u2019s finances as a lump sum. At year-end, they\u2019ll have 12 months of detailed history all in one place.<\/p>\n

Second, there\u2019s no payroll history to carry over into the new application. Regardless of when your own fiscal year turns over, payroll reporting always restarts after year-end. That\u2019s part of the reason why businesses often see a January 1 changeover as the cleanest. However, as we\u2019ll see, contractors can also make a clean transition with their books at other points on the calendar.<\/p>\n

Finally, for many contractors, winter is the slowest time of year when it comes to financial data coming in from projects. A lot of construction companies take advantage of the break in their job cycles to change software in their back office. That said, keep in mind holiday schedules and the time constraints that year-end accounting procedures place on your staff each winter. These can cause obstacles to the best-laid plans for a January 1 transition.<\/p>\n

<\/span>What\u2019s the best time of year to change accounting software?<\/span><\/h3>\n

Look at the ebbs and flows of your business. That includes your fiscal calendar, your staff schedules and your project cycles. If you\u2019re a seasonal contractor in the Northeast or Midwest, winter might be a less hectic time for your construction company. In contrast, southern or California weather might spread your projects out year-round. In that case, mid-year implementation might be more feasible than if your busy season runs April to September.<\/p>\n

Don\u2019t feel locked into just one option until you form a game plan with your vendor and CPA and commit to it. The start of Q2 (April 1) or Q4 (October 1) can also be great benchmarks. For most contractors, these dates are outside the heart of busy season. Meanwhile, they still provide a clean tie-out to your quarter before moving your data. October 1 has a particular advantage, with three full months to prepare for a smooth year-end \u2014 plus, because it\u2019s a less well-known transition time, vendors will often have more resources on hand for you than at year-end.<\/p>\n

The important thing is to figure out when you\u2019re going to be ready and how much time you need in order to make the transition. Your vendor can create a game plan with you to calculate the best date to target from there \u2014 and help you meet it.<\/p>\n

<\/span>How long does it take to change accounting software?<\/span><\/h3>\n

In an ideal world, implementing a base job cost accounting system could take three to four months from purchase. A large ERP could take six months to a year. But, that depends on several factors. Count on more time for:<\/p>\n