By CA Ankith C Shetty
Investing in a Accounting software is paramount for any Business. Be it managing compliances like GST and income tax or preparing annual Financials. Accounting software helps you run business optimally by tracking profits and cashflow on a daily basis and to know whom you owe money and who owes you money gives you sound sleep in the night.
With cloud accounting software's, your life is even more simpler as it offers automatic bank feeds being pulled from your bank statements and can map it to your expenses using rules. You can share access to an accountant and help you with tricky matters.
QuickBooks was launched in India in 2012 and offers accounting software such as Cloud accounting, invoicing, inventory management and cash flow management.
Zoho Books was launched in 2011, offers almost similar features as quickbooks however, being made in India, the developments were quick and adhered to local compliances straight out of the box.
Quickbooks has slick interface, which is easy to use for even a Individual without accounting knowledge. Globally, Quickbooks along with Xero are leaders in cloud accounting space, hence enjoyed a huge universe of apps to integrate with for shopify, Payment gateways, payment reminders, Business Dashboards, Forecasting tools, Email Marketing, CRM and was economical in pricing.
Zoho Books offered Free for ever app for small businesses. It also offered some interesting features like Customer and Vendor Portal where customers and suppliers could directly upload invoices and check status of payments. Zoho offers Auto scan featuring OCR technology which can automate expense recording by just clicking a picture from mobile app.
Moving to a new accounting software from a legacy accounting software can be scary to even the most experienced accountant. As it involves handling historical data as well as learning the new software and mastering it to get the best out of the software.
In this article we are talking about moving from Quickbooks to Zoho books in an overly simplified description only for a services oriented business entity which is not dealing with inventory or stock.
You'll need to set up your organisation in Zoho Books and make sure all the required details are saved. Here's how you can do it:
You'll need to login to Quickbooks account and download the following
a. Chart of Accounts: Go to Accounting > Chart of Accounts > Run report > Export to excel
b. Customer & Supplier Contact List: Go to sales > customers > Export to excel Go to expenses > suppliers > Export to excel
c. Trial Balance: Go to Reports > Search Trial balance > Select date of migration > Export to excel
Customer Balances: Go to Reports > A/R Ageing Summary Report > select migration date > export to excel
d. Vendor Balances: Go to Reports > A/P Ageing Summary Report > select migration date > export to excel
Zoho Books has various modules such as Estimates, Timesheet, Recurring Bills, and Debit Note to manage transactions easily. You can enable the ones that are needed for your business. Here's how:
Go to Settings > Preferences > General.
Here you can customise the format of your invoices, credit notes, branding, email notifications, transaction number series, giving user access to accountants, configuring roles and even approvals.
This is an important step if you want to personalise Zoho books to resemble your brand and meet your customer requirements.
This is the most crucial part of migration process which requires care
Following are the modules that have to be imported
Note: Some account types in QuickBooks Online vary from those in Zoho Books. So, before importing the Chart of Accounts, you need to make some changes in the import file.
Note: Zoho books has a feature to invite cistomers to customer portal and vendors to vendor portal. This enables self-servicing and saves precious time of accountants, Accounts receivable team and Payables team. To enable this customer email has to be imported along with customer and vendor names.
Note: Live Bank Feeds If you choose to fetch live feeds from your bank, make sure to fetch the feeds from the date you've entered the opening balance. Otherwise, there is a chance of automatically fetching the previous financial year's statements.
Note:, if invoice was ageing is required. You should follow the advanced data migration.
After you have imported all the required transactions, it is important that you check if they've been properly synced with the Opening Balances. Only then will you get accurate account values in the Trial Balance report.
For Validating data, download the Following from Quickbooks and Zoho Books on the same date and compare the balances. If it matches then migration is successful
Note:, if invoice wise ageing is required. You should follow the advanced data migration.
Migration of Accounts Receivable and Payables Ageing
This will be explained in our Advanced Accounting software migration guide
After the migration is done, accounting in the Zoho books can be commenced and would be help you track performance of your business going forward. However if you want to compare performance with previous period data to track the trend then it would be possible only if historical data is migrated. This would require considerable time and effort as all the historical bank entries have to be manually matched.
We recommend to migrate historical data of current year financial year to meet the regulatory reporting requirements in India. Rest of the accounting data can remain in the legacy software if, its access is not restricted at any time in the future.