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As 2016 comes to a close, we begin to reflect on current accomplishments as well as fine tune our business processes for the coming year. What an opportune time for calendar year based companies to switch to a better accounting application? Here are three reasons why the beginning of the new year is a prime opportunity to start fresh with your accounting software.
First, the beginning of January is a good natural cut-off point because investors, auditors, and managers review accounting on an annual basis. All the work and focus needed to verify the closing balances in your general ledger directly pay off when you have accurate opening balances in your new system.
Secondly, by having all financial transactions and related documentation for each year sourced through one platform, reporting for audits, company performance, and taxation all become much more manageable. For example, going live with a new accounting application in the middle of the year typically means you are using Excel to combine reports from multiple systems to provide 1099 reporting. With software like Accounting Seed, you can easily create and export with a click of a button 1099 contractor data as a CSV file for uploading to Yearli or other recognized e-filing applications if your data for the year is in the system.
The third and final reason to start fresh with a better back office application is it will be the easiest and most clear message with regards to internal communications company-wide. For instance, when the staff asks where they can access financial data, it is more straightforward to say 2016 data is in the old system while 2017’s is in Accounting Seed. Therefore, you can reduce the unnecessary back and forth communications confirming where data is when it is tied to the calendar year.
