6 questions to prepare you for an ERP conversion

Before transitioning to a new ERP system, it’s crucial to address six key questions with your implementation partner—including how much historical data to migrate, which reports to bring over, and whether to adjust your chart of accounts—to ensure a smooth, efficient, and successful conversion that positions your business for ongoing growth.

As your business grows, you may reach a point where your current ERP or accounting system can no longer keep up. Operational inefficiencies, lack of integration capabilities, and limited reporting can all be signs that it’s time to consider an upgrade or replacement of your existing software. When that time comes, planning your ERP conversion is essential for a successful transition.

Once you and your ERP implementation partner at Rand Group have chosen the right ERP system, the next critical step is to develop a robust project plan for data conversion. Effective planning and execution can set your business up for enhanced financial reporting, better decision-making, and streamlined operations. Every ERP conversion is unique, but following a proven process will help ensure a smooth and high-quality transition.

ERP data conversion: a critical step in any ERP transition

ERP data conversion is the process of moving data from your old system to your new ERP solution. This step involves not only transferring data but also cleaning and rationalizing it—removing outdated accounts, correcting inaccuracies, and ensuring your organization starts with the best possible data. Working closely with your project manager, you’ll review legacy data, perform data cleansing, and decide what to migrate. Here are six key questions to ask your partner during the planning process:

How much historical data should we convert?

Data conversion is an essential part of moving to a new ERP system, but migrating large volumes of data can be costly and time-consuming. It’s important to be strategic:

• Most companies opt to bring over only key data, such as open transaction balances for Accounts Payable and Accounts Receivable, open sales and purchase orders, and current inventory balances—rather than years’ worth of General Ledger history.
• Discuss with your partner how long you will have access to your old system in case you need to reference legacy data.
• Weigh the cost and time required to migrate larger data sets before making your decision.

Which reports should we migrate to the new system?

While business intelligence and analytics are more important than ever, migrating all existing reports can lead to duplication and clutter. To keep your new system streamlined:

• Review all existing reports to determine which are current and relevant, and which are outdated or redundant.
• Consolidate similar reports to reduce clutter and redundancy.
• Establish a backup plan for reports or data you choose not to migrate.

By transferring only the most critical and useful reports, you’ll give your team a clean slate in the new ERP environment.

Should we change our chart of accounts (COA)?

As your organization expands, a more robust chart of accounts can improve reporting and decision-making. Before migration:

• Map your old accounts to the new chart of accounts to ensure historical transactions are preserved.
• Do not map a single old account to multiple new accounts, as this can create data conversion issues.
• Consider whether your new system’s COA structure supports your current and future business needs.

Which software, modules, and features do we want to integrate with our new system?

Modern ERP systems can integrate with a wide range of applications—such as e-commerce sites, payment processing, and tax compliance tools. When planning integrations:

• Evaluate your current integrations and identify which are essential. Also, consider new integrations that could enhance efficiency.
• Plan to implement new integrations after go-live, giving users time to adapt to the new system first.

What are the new system’s hardware requirements?

Understanding your ERP’s hardware requirements—whether you are deploying a cloud-based or on-premise solution—is crucial. Many organizations choose cloud ERP to reduce costs and increase security by eliminating expensive on-premise servers. Evaluate your options and select the approach that best aligns with your business needs and long-term IT strategy.

Should we go live with all companies at once, or one or two at a time?

Deciding whether to convert all business entities at once or in phases is a key consideration. Most organizations find it more effective to implement the new ERP for one or two companies first. This phased approach allows your team to get comfortable with the software and makes it easier to address any post-go-live issues within a smaller group before rolling out to the rest of the organization.

Conclusion

Careful planning and discussion around these questions will help ensure a smooth and successful ERP conversion. Engage your ERP project manager early and often to address these topics before making the switch.

Next steps

At Rand Group, our experienced ERP specialists can guide you through every step of the conversion process—whether you’re migrating from legacy systems like Dynamics GP, QuickBooks, or any other accounting software. We offer deep expertise in Microsoft Dynamics 365 Business Central, Dynamics 365 Finance & Operations, and other leading ERP solutions.

Ready to unlock your organization’s potential with a modern ERP? Contact Rand Group to learn how we can help you prepare, migrate, and thrive with your new system.