This guide will help you to switch into semilimes platform from your legacy accounting systems like Quickbooks, Freshbooks, xero etc. The steps are as follows:
Step 1 – Set-up fiscal year and periods on semilimes
The very first step for switching process to semilimes will be setting-up fiscal year and periods for your company. During the configuration process through questionnaire, you will be asked to set-up the fiscal years/periods. But you can always change these settings later. For doing so, go to ‘Fiscal Years’ section under ‘Financial’ menu on semilimes and select ‘Fiscal Years’ in it.
It will then display the below screen where it will display all fiscal years which are already set-up.
If you have skipped to set-up fiscal year during configuration process then you can create a fiscal year by clicking on the ‘+’ icon from the above screen. It will then display the below screen where you will need to enter fiscal year information.
- Enter the name of the fiscal year.
- Select the starting date of the fiscal year by using date picker option.
- Select the ending date of the fiscal year by using date picker option.
- Click on the save icon to save the fiscal year information.
Now, you need to create the fiscal periods within the fiscal year. Typically companies close their accounts at the end of each month or each quarter within a fiscal year. You have both the options to generate the fiscal periods in the ‘Periods’ section of the screen.
- Press ‘create monthly periods’ button if you want to generate monthly periods within the range of the fiscal year.
- Press ‘create 3 monthly periods’ button if you want to generate quarterly periods within the range of the fiscal year.
Step 2 - Set-up your chart of accounts
As a part of configuration process, semilimes accounting system will automatically create a default chart of accounts for your company based on the country and business type you choose. The chart of accounts is a list of assets, liabilities, income, expenses and equity accounts.
Of course, you may not need all the accounts from the chart of accounts generated based on the configuration. Therefore, you can remove any account that you do not need. You can also add any account manually which are not available in the chart of accounts as per your requirements.
Step 3 - Import your existing Parties (Customers and Vendors) and Products
Another major advantage of switching to a new system is to filter out inactive customers and vendors that are no longer in use. This is the chance to clean the database and make the new system clean from the very beginning. Once you have the refined customers and vendors list, you can import those directly to semilimes by using a CSV file format.
Once the CSV file is ready to import, go to ‘Party’ menu on semilimes and choose the ‘Parties’ section in it. On the top right hand side you will see the import icon as highlighted below -
A pop-up window will be displayed if you click on the icon which will allow you to import your file.
You can skip this step as well if you think you can enter customers and vendors information later on your customer and supplier invoices on demand basis.
Similar to customers and vendors, you can also import your existing products. Once the import CSV file for the products is ready to import, go to ‘Product’ menu on semilimes and choose the ‘Products’ section in it.
A pop-up window will be displayed if you click on the icon which will allow you to import your file. You can skip this step as well as you can create products on the fly while you create transactions.
[Note – please check other tutorials on semilimes knowledge-base to learn different import files formatting for different types of data]
Step 4 - Create any outstanding (unpaid) supplier and customer invoices on semilimes
It is important that, you figure out all of your outstanding supplier and customer invoices and create those on semilimes accounting system as a part of switching process.
[Note – please check other tutorials on semilimes knowledge-base to learn how to create supplier and customer invoices on semilimes]
You can skip this step as well if you think you do not need to track your outstanding supplier and customer invoices on semilimes.
Step 5 - Extract GL account balances from the legacy system
Once you are ready to migrate the GL account balances to semilimes, you should close fiscal period on your legacy system. Then run the trial balance report on the legacy system to get the closing GL balances. The closing GL balances of the legacy system will be opening balances on semilimes.
Step 6 - Enter your account balances on semilimes
Now, you should be ready to enter your very first transaction which is opening balance journal on semilimes. To create the opening balance entry, please explore the ‘Financial’ menu and choose the ‘Entries’ section. Then select ‘Account Moves’ under the ‘Entries’ section.
Now, click on the ‘+’ button as shown on the below screenshot to enter the opening GL balances.
It will then display a screen to enter account opening balances. Let us first discuss about the general section of the account moves screen below.
- Select the journal as ‘Opening Balance’ from the list of journals.
- Select a period from the list of values. You should select the period from which you will start booking accounting transactions on semilimes.
- Select the effective date by using the date pickers. Usually it will be the first day of the selected period.
- Keep rest of the other fields blank and click on the save button.
As next, you need to enter the lines for the account moves. For each account balance you will need to create a new line.
- Select the account from the list of values.
- Enter the opening balance on the debit or credit field.
- Enter the description for the account move.
- Showing the state of the move. By default the value is ‘draft’. The state of the line will be changed to ‘posted’ when you post the account moves.
- Showing the ‘Party’ field because we have selected the account “Accounts receivable”. The party field will not be appeared for the accounts other than “accounts receivable” and “accounts payable”.
- Now press the ‘Save’ icon and ignore other fields. The line item for the account move will be created.
In this way, please complete entering all other accounts balances on separate lines as per trial balance report from your legacy system. If you have created the outstanding invoices on semilimes then you do not need to enter the accounts receivable and accounts payable balances. Once you have entered all lines with account balances then press the save button. System will validate whether total debit and credit balances are equal or not. If they match exactly then the account balances will be updated.
And that was the final step to migrate your entire accounting data from your legacy system to semilimes. Now you can generate trial balance on semilimes to verify whether the GL account balances are matched with the closing balances of the legacy system. To generate the trial balance report on semilimes please explore the ‘Financial’ menu and choose the ‘Reporting’ section. Then select ‘General Ledger’ under the ‘Reporting’ section. The closing GL balances of the legacy system will be equal to the opening GL balances of semilimes.
We are coming up with more tutorials in near future to make your accounting journey smooth on semilimes platform. Till then stay tuned with us. Happy accounting on semilimes!!!