Many companies start their business using a manual accounting system. For most entrepreneurs, this route allows the business to start operating without requiring a large investment for a computerized accounting system. The costs of installing a computerized accounting system include purchasing the system, labor to install the system and training costs to learn the system. A manual system involves writing each transaction in an accounting notebook and calculating all numbers manually. Many times, a business recognizes a need to convert from the manual system to a computerized accounting system.
Install New System
Finalize Data in Manual System
Transfer Balances to New System
Run Parallel Systems
The fourth step requires the owner to use both the manual system and the computerized system for a temporary period of time. This allows the owner to ensure that the new system operates as expected.
Discontinue Manual System
At the end of the trial period, the owner discontinues the manual system. The owner needs to focus on using the computerized accounting system. All of the records from the manual system can be packed up and stored.