Most architecture firms start looking at Factor AE for the same reasons: easier time tracking and smoother billing. Those are good reasons. What many firms don’t expect is how much of the work happens outside Factor, in the books, the data, and the decisions about how you’ll run things going forward.
Here are five things to get right, and a few honest thoughts on when to call in help.
1- Clean up first, then move
Don’t move the mess. This is the perfect opportunity to tackle the accounting issues you’ve been meaning to fix.
Start with your list of accounts (accountants call it the ‘chart of accounts’). Look for unnecessary, outdated, or duplicate accounts and consolidate them where appropriate. Then review:
- Suspense or clearing accounts
- Uncleared checks and deposits
- Open vendor and client balances
- Uncollectible invoices
- Unreconciled transactions
2 - Understand where you’re starting
Your migration plan will depend partly on the system you are using today. For example, firms moving from Deltek may need to export historical information and bring it into QuickBooks Online through a manual process. Firms using BQE Core or QuickBooks Desktop may have synchronization options. Ask early what data must be exported, what can be imported or synced to QBO, and who will be responsible for migration and post migration review so there are no surprises.
3 - Decide how much history to transfer
You don’t have to bring everything to QBO. Most firms bring a year or two of summary data into QBO. Before deciding, consider. Less history means you may have to look things up in exported reports or in the old system now and then. Third-party tools that integrate with QBO, such as Sassant, can help with the heavy lifting of moving the data.
4 - Document how you work today
Before you change anything, document your current routines. Who approves timesheets? How do expenses get entered and linked to the right project? Map out how your firm handles: project setup, client and contract information, time and expense tracking, invoicing and collections, vendor and subconsultant bills, financial reporting, and month end and year end close procedures. Once these details are mapped out, you can decide what to keep, what to change, and what to eliminate. A move like this is a rare opportunity to fix things that never worked well. Getting the workflows down on paper ensures your team is on the same page when the new system goes live.
5 - Expect reporting and workflows to feel different
A new system will not behave exactly like the one you’re leaving. If you’re moving from Deltek Vision or Ajera, you may find QBO reports less customizable and that frustrates some users. You’ll also be adjusting to a two-system workflow: Factor AE will house the project-related information and reporting QBO will provide the firm-wide accounting and financial reporting
Your team will need clear processes and training. Give your team time to adjust, and decide early on the handful of reports you really need each month before attempting to recreate every report from your old system.
When should you ask for help?
Factor’s onboarding team knows Factor AE well, but accounting and QBO setup fall outside their area of expertise. We help guide firms through the transition.
The right level of support depends on your team and your timeline. If you have an experienced internal accounting department, we work alongside and provide guidance. If your books are managed by a part-time or outsourced bookkeeper, or by an owner, you may benefit from more hands-on help with QBO setup, data migration, workflow design, and training.
Outside support is worth considering if:
- Your bookkeeper or accounting team is already stretched thin
- You’re working against a tight Factor AE go-live date
- You want to outsource the QBO setup and data transfer
- You’re unsure how much historical data to move
- You have questions or don’t know where to begin
A smoother transition starts with a plan
After a Discovery Session with a firm’s director of finance, we developed a custom migration plan and walked him through the tools available to streamline the work. He took it from there, completing the QBO setup, importing the chart of accounts, and bringing in two years of monthly historical data, well ahead of the firm’s Factor AE go-live date.
We’ve helped architecture and engineering firms transition to Factor AE and QuickBooks Online with greater clarity and less disruption. The first step is a paid Discovery Session, where we’ll review your current setup and build a migration plan around your firm’s systems and timeline.
Schedule your Discovery Session - click on the 'Get in touch' button at apricusaccounting.com.