Last Updated on: 5th May 2025, 12:56 pm

Business Accounting Software System Implementation

We have discussed various important aspects and features of Accounting Software; guidelines for review, evaluation metrics and selection process of the right accounting system as per organisation needs.

Accounting Software Systems Categories

To make the review and evaluation process simpler and focused, we classify the popular Indian Accounting Software into following broad categories:

• Enterprise Accounting System :  Covering all major functional areas of business, in a distributed system. These are targeted for large organisation for complete business information, Planning and Control.
• Integrated Accounting System : Covering various functional areas of Business, providing Business Information integrating all functional areas. These are targeted for Mid size organisation covering major areas of Business Functions.
• Invoicing & Basic Accounting System : Covering Quick Invoicing, Book Keeping and Basic Accounting Reports. These are targeted for Retail Invoicing & Accounting.

Accounting Software Systems Categories

Based on the above categorisation, we discuss the following popular accounting software, widely used in the Indian business environment, complying with statutory rules, customs, and practices in Indian business organizations.

• Enterprise Accounting System : Align Books, Logic ERP, ZOHO Books
• Integrated Accounting System : Busy Accounting, Marg ERP, Profit Books, Real Books, Reach Accountant, Saral Accounting, Tally Prime, Vyapar,
• Invoicing, Inventory & Accounting System : Khata Billing, Kuber Accounting, My Bill Book,
• GST Invoicing & Accounting : CaptainBiz, Clear One, FACE, FocusLyte, GoGST Bill, SleekBill, Swipe  & uBooks.  ZOHO and Vyapar also offer Mobile App for GST Invoicing & Inventory for Small users.

Planning for Accounting Software System Implementation

Every organisation intending to introduce computerized a system needs to make elaborate and extensive pre plan. In practice, following situations may emerge.

• First-time introduction of a computerized accounting system.
• Transition from popular apps like spreadsheets, to a computerized accounting system.
• Migrating from an existing computerized accounting system to a new system.

In any case, a pre- plan must be prepared, as explained in earlier chapter.Top of Form

Accounting Software System Installation

Having selected the Accounting System, it is time to install the system in the organisation, depending on the type of software selected.

• In-Premise System : Installation process of on premises software will depend on the software. each software has their own installation process. 
• Cloud-Based system : You don’t have to install the software because this software is already on cloud. You have to login and register your name to use it.

In-Premise System Installation

In case of In-premises, normally you have to download an Installation wizard from the vendor’s website,  and then install in your computer in the specified place. During Installation, you have to provide various information. See the vendor’s documentation for installation the process.  Some software installation require technical knowledge and expertise. Take assistance of vendor to install the software in your computer correctly.  This is a very crucial stage. The software may not work properly for any mistake or  improper procedure 

Screen Sharing Software: It would be useful to install a screen sharing software, like TeamViewer, AnyDesk, UltraViewer etc., in your computer, so that the vendor can directly access your computer and help you to install properly. Install the same software that the vendor is using or recommending. Such screensharing software will also be useful to get on-line dedicated support by vendor, from their own place, accessing your computer (they don’t have to come to you). This is the usual dedicated support service method provided by vendors, now a days.

Issues of Software system Installation : As explained Installation may be complex and technical for some software.

• Self Installation : Check that you can do it yourselves. Also understand the rules and process of Uninstallation, Re-installation, License Update, Software Upgrades. These issues will come up later on. The system should provide to install the software at user specified folder.
• Vendor Assisted Installation : In some cases, you need assistance of Vendor. See that all processes are user friendly and support is provided by Software Vendor in time.
• Post Installation : Some vendors require special process / permission to change the key data of Company Profile, like Company name, Registered Mobile Number etc., change of server / device, moving the data to another device/ system, etc. Take note of these important issues.

Online Help : An online help should be instantly accessible throughout the  system. It should provide General Help as well as context sensitive help, filtering out the appropriate solution of the issues asked related links for further details where necessary.

Post Installation Work

• Data Base Set up: After installation, create and set up the database to store user created data structured manner. Some software first creates a central database. Some systems separate database for each business.
• Company Profiles Creation : The Company Data sets are normally created when you create the company (organisation) profile providing the required details of the company. 
  So, the software system database gets created first. The organisation (Company) Data sets for each Company, are created next, as needed.
• Initial data Preparation : Having created the Company Data Base for a specific Company, first step is to collect initial data (Company Profile and Masters data)  from various scattered resources and entered into the system, through:
  • On line data entry into the system
  • Offline data entry outside the system

Company profile data may be quickly entered through software provided input form. Masters data may be input directly into the system or imported through various alternative method, as explained next.

Financial Accounts – General Ledger System Module

Financial Accounting Module covering the General Ledger System is the core module of Accounting System, which must be installed first, irrespective of other functional modules being integrated. A separate data sets would be created for each Company. So, we discuss General Ledger System as essential part of Software implementation.

• Masters Data Entry : After creation of company profile, create Masters data for the respective functionality. Masters Data may be entered directly trough the application, or imported off line, as explained next.
• Model Chart of Accounts : Organise the Master Data into Multi Level hierarchal format, as per Accepted Accounting System. Almost all software provide Model Chart of Accounts to create organised Chart of Accounts, easily and quickly.
• User Defined Input Data : Apart from the standard data fields provided in the input form for Master entry,  the software may provide for creation of its own additional elements, like, Numeric or text data fields, radio buttons, drop down list, muti line text box, multi select, Auto generated number, Attachment, validation rules etc., for each data Item, to customize the input data form.
• Input Form Interface: The Form layout aesthetics and organisation is important for data entry convenience. Similar info should be clubbed together. Information should be organised into sections.

The input fields should be logically organized. The input data should be instantly validated to prevent wrong data input. Selection options like drop-down list, radio buttons, checklists, etc, should be well organized, properly placed and intuitive. Normally a micro help of the currently focused option is displayed explaining a short description of the option.

General Ledger Accounts Masters : First the general ledger account Masters are to be created.  In the same way the other Master’s records are to be are also to be created.

• Unique Master record : Masters records are unique. To keep the sanctity and integrity of the system, two records of same Master should not be created. Each Master record is given a unique ID identifying the Master record.  But sometimes, a master may have multiple unique IDs, and same master record may be identified or selected through any of the parallel IDs. A master record may be identified by unique name, numerical or Alpha alphanumerical code or mnemonics.
• Hierarchal Structuring & Restructuring : The masters should be properly liked to the parent master record to create ideal hierarchal structure. The structure of chart of accounts maybe dynamically changed and reorganized seamlessly, by moving a master  from one parent to another. 
• Multiple IDs : Normally a master is uniquely identified by you unique name  but sometimes a master may also be identified by multiple unique names multiple alternate  unique names.
• Opening Balance : At the start of Financial Year account, the closing balance of previous  Financial year is carried into current year.
  • Entry in Specific Master: In some system, the previous year closing balance is entered /carried as current year opening balance.  In such case, each set of Master relates the specific financial year.
  • Entry as first Transaction : Alternatively, opening balance is separately entered in a special voucher  as a transaction.

The later method may be better, the opening balance is de-linked from the master record. So, the master record becomes independent of financial year. Same Master may be shared between different financial year, and even between different companies having similar accounting structure. 

Masters Data Preparation Methods

First, we discuss about entry of masters Data entry to be done first. The Pros and Cons of Data Entry Methods in these two plans are discussed and compared.

Manual Master Data Entry into the system

• One Shot Data Entry into the System: The Data entry form in the software is pre-designed. You may enter the data through the software Data Input Form.
• Piecemeal Data Entry into the System: However, input data might not be organized in the same way as per the System Form layout and sequence. The input info may be scattered in various places. So, you may need to enter pieces of data elements (or related data items) from different sources.

For example, while entering customer profile data, you may need  to input various detailed particulars that may be sourced from multiple locations. For example, the mailing address may be found in one area, while phone numbers and other contact details are located elsewhere, and tax information may be in yet another location.

The process of entering such dispersed data into a system’s input form can present challenges. It requires opening the entry form, searching for and selecting the customer, and systematically filling in the relevant information in several steps. This necessitates selecting each customer and entering the pertinent data in smaller, organized sections. Consequently, this process can be time-consuming, particularly when dealing with large volumes of data.

• Data Checking : Having entered the data, it must be thoroughly checked for correctness.
• On screen Checking : Data may be checked on screen and mistakes rectified. However, on -screen checking and editing may be difficult for large volume data from entered from multiple input sources.
• Data Checklist : So, instead of Data checking directly on the entry form, you may need to print a checklist, to check the correctness and completeness of the entire entered.

You should make the Data Checklist Items conveniently aligned with input documents. You may need a program to print all the data elements on a single sheet, according to the input documents. The software may not offer such functionality to print data in a customized way.

So, Direct Data entry of massive data directly in system, though looks simple and straight forward, is often practically difficult. It is advisable to discuss the initial data input plan with your software vendor. You may also seek their assistance in getting the Master data correctly.

Offline Data Entry Outside the System

Instead of direct entry of Master Data, Datacan be entered offline using popular applications (like spreadsheets) in a specified format, and then imported into the system using the data import tool. This is particularly useful for voluminous data, gathered from scattered sources.

We now discus the various methods and options of Off line data entry into the Accounting system just before the start of Implementation.

• Data Input Templates: To make offline data entry, you may use a data entry template (for example a spreadsheet), as per aligned with input Form. Off line data input templates offer a simple and easy tool to import data into the live system. This may be done in two ways:
  • User Created template.
  • Using developer created template

We now discuss both the methods:

• User created Data Template: Looking at the data to be entered, the input form provided by the system, and data to be collected from various sources, you should design a template to conveniently collect all data in simplest and quickest way.
• Vendor supported Data Template : Often vendor provide the template into which data to be entered. Normally, vendor also provides a Data Import tool, to import data from such template into the system.

Data Entry into Input Template Form: Having created a Template or selected the Vendor supplied Template, enter complete data offline int the Template Form. No info left out. Manually, check each data element carefully from the authentic input source. Instead of checking on screen, better print entire data sheet on paper. Check and mark the editing to be done. Edit the data. Now Off-line data entry is complete. Next step is to import the data into the system.

Data Import from Template into the Accounting System: Depending on Template used, data may be imported from Template to System in two ways:

• Data Mapping and Import: In case of user created Template, map each data element of the offline system, to the respective data element in the software system, so that the data from offline system gets into the computer system properly.
  Importing data to software system may sometimes be difficult, if the data structure is complex, or the data dictionary of the system is not properly and adequately documented. Proper data mapping may often require technical expertise. For small volume data, it may not be practically viable.
• Through Data Import Tool :  In case of vendor provided Template, compatible data import tool to import the data from the template directly into the system, are often provided. They also provide data validation tool is to check the correctness, completeness, and integrity of the imported data.

Digital Data Migration

We have discussed Initial Data preparation through on line and off line methods.However,many organizations maintain important information in digital formats like MS Word, Excel, or other systems.Much of the initial master data may already be available in these digital applications. In such case, instead of manually typing the data into the system, options for data copying or migration should be explored. It saves significant time and ensures correct data entry eliminating manual typo errors.

Existing data in digital form may be migrated into live system by following methods:

• Copy Paste: Simple and non technical method is to copy data from exiting digital resource and paste into the entry form of the system. This is alternate to typing, but may result better quality data than manual entry, due to elimination of typo mistakes. The points discussed about One shot entry and piecemeal entry as discussed earlier, should be kept in mind.
• Data Migration Tool: In case of heavy volume exiting data migration situation, possibility of creating Data migration tool, as explained in Off line Data entry method, may be explored, In such case, the migrated Data should be validated through a Data Validation tool to ensure data completeness, correctness and Integrity.

Accounting System Implementation Plan – Key Takeaways

We have discussed challenges and issues of implementing a Computerised Accounting System, requiring meticulous planning. We have also discussed the initial data preparation plan and methods, the first step of implementing Accounting system. We again summarized key points of all the steps and tasks involved.

Business Accounting Software System Implementation Plan – Key Steps  

Accounting Systems Types

• On-Premises Software: Installed locally on company computers with full control over data but limited remote access.
• Cloud Based Software: Software and data reside on cloud server of the service provider, accessible via the internet, offering scalability and easier remote access, with updates and backups handled by the provider.

Accounting Data Base Creation

• Software Data Base : After installation of In Premises Accounting Software, first the software data base is created to store all user created data.
• Company Data Sets : The software user may maintain Accounts of Multiple organisation (Company), spanning over multiple Financial Year Accounting period. After creation of Software data base, separate data sets are created for each such Company.

Data collection and Initial Data Entry Modes

• Direct Data Entry: Manual entry directly into pre-designed software forms. However, often it can be difficult for scattered data sources and voluminous data.
• Offline Data Entry: Data can be entered offline into a template form and imported into the system through proper impot tools. It is more suitable for entry from multiple data sources and large volume data.

Offline Data Input Templates : For offline data entry, proper templates need to be created. Create your own template or use one provided by the developer. Enter Data into the Template Form, print for verification and edit to make data correct and error free.

• Pre-created Templates : Import Data from Template into the system, using the developer’s import tool.
• User Created Template : Map corresponding Data Items in the Template with the Application. Then migrate data. Validate Data for correctness, completeness and data Integrity.
• Data capture using a template and importing it: This involves filling out a structured template and importing the data into the system.
  • Data Mapping and Import : It involves aligning fields in your existing data sources (e.g., customer names, Postal address, Phone Number,) with the corresponding fields in the Accounting system. For instance, ensuring that “Customer Name” in your spreadsheet matches “Customer Name” in system’s database.
  • Data Migration: Once mapping is complete, data can be transferred from the external source to the new system using a data migration program. It Helps automate bulk data entry instantly and correctly.
• Validation of Migrated Data : After data migration, it is essential to validate the transferred data to ensure
  • Correctness: The data is accurate and matches the original source.
  • Completeness: All relevant data fields have been imported without missing any critical   information.
  • Integrity: The structure of the data remains intact without any missing link or corruption during transfer.

Data Validation is Critical toensure the system functions smoothly

Transfer of Digital data from Other Systems

Many organizations already have master data in digital form, like Spreadsheet, other accounting software, etc.

• Copy Paste: Copy Data from the external digital media and paste into the System input form. It is simple, non technical, but time consuming.
• Data Migration : Map data between external system and the Application and migrate through a Data Migration tool. Validate Data for correctness, completeness and data Integrity, as explained.

Migrating from an existing to a new computerized accounting system:

• In Built Migration Tool: Many software systems provide tools to migrate from one system to another, like from Tally to their system, or from their system to Tally.
• Data Export and Import : In absence of In Bult migration tool between the two systems, first export data from the old system using its data export tool. Then Import the exported Data to the new System through Data mapping and Data Import Tool. For this you need to properly map data and create Data Migration tool to Import the data into the new system, validate the data for correctness, completeness and data Integrity. It may require technical expertise.

If data of both systems are incompatible and data migration is not practically possible, then type or copy paste into the new system, from the exported data of the old system. It is time consuming job for large volume data.

Financial Accounting Module – General ledger System

After creation of Company data set. For a specific Company, the Masters Data for core Financial Accounting Module covering the General Ledger System is created. There are several methods of creation of such data, like:

• Direct Data Entry: Manual entry directly into pre-designed software forms.
• Offline Data Entry: Data can entered offline, through model Pre created or user designed templates, as explained.
• Data Migration form other applications : Data existing in other application, may be imported through Data Migration tool or other suitable methods, as explained.

The organisation may select the right method suitable for them.

In the same way, data may be entered for other optional modules, or imported through Off line methods.