If you are converting from a manual system to a computerized system, you should enter your data based on your most recent trial balance. The system will let you do a general journal entry with this data.

You should set the date for the general journal entry as the last day of the month prior to the one you’ll be starting to use for daily transactions. For example, let’s assume Lisa’s Candle Shop decides to convert as of March 1. She will enter her trial balance from February 28 to get the accounts set up.

After you’ve entered all the data, run a series of reports based on that data to be sure things are formatted the way you would like them. Also, check the reports to be sure the data matches your reports that were developed manually. This extra step lets you test your setup and be sure that you started the entire computerized process based on accurate numbers that match your prior accounting system’s records.

The process may vary slightly depending on the software program chosen. Read through the manual, review the start-up suggestions, and proceed based on the methods that will best meet your business needs.

We have discussed the basics of using a computerized system throughout the book, so you should be familiar with how to use these systems. Now the future of your accounting system is up to you and how carefully you manage its information to help you make key business decisions, manage your money, and make your profits.