Switching to Navigator Near Your Financial Year End

Overview
Switching accounting systems is a major change. If you switch close to your financial year end, the risk of reporting issues and reconciliation problems increases.

This guide explains the best time to go live, what risks to avoid, and what to do if you must switch near year end.

Why This Matters
Your accounts must remain accurate for:

• VAT returns

• month end reporting

• year end accounts preparation

• audit trail and invoice history

• your accountant’s review and submissions

Switching too close to year end can cause duplicate postings, missing transactions, or differences between systems that take time to untangle.

The Best Time to Go Live
The cleanest go live date is:

• the first day of a new financial year

This creates a clear cut off point. Your previous accounting system contains a complete year of transactions, and Navigator begins cleanly with opening balances.

If that is not possible, the next best option is:

• the first day of a month

• not within the final month of your financial year

Why Switching Mid Month Is Not Recommended
Switching mid month usually means you need to split the month between two systems.

This causes problems because:

• invoices can be entered twice

• payments can be allocated differently

• VAT reporting can be harder to reconcile

• month end totals are harder to verify

If you do switch mid month, you must agree a clear cut off date and stop posting in the old system from that point onwards.

Why Switching Near Year End Is Higher Risk
Switching close to year end creates extra complications because:

• year end reporting requires a full audit trail

• accountants expect a consistent system for the full year

• opening balance adjustments may be required

• reconciliation has to be completed quickly under time pressure

This is especially difficult if you try to operate both systems at once.

Why Running Two Systems in Parallel Causes Issues
Some businesses want to keep using their old accounting system while also using Navigator.

This is not recommended.

Navigator is a dealer accounting system. It posts transactions differently to general accounting platforms. It also automatically updates control accounts and stock values.

Parallel running creates problems such as:

• duplicate transactions when importing balances

• differences in nominal structures between systems

• control accounts not matching

• difficulty reconciling trial balances line by line

Even if the bottom line matches, the breakdown across departments and nominal codes often will not.

Recommended Approach If You Are Close to Year End
If you are within the final month of your financial year, the best approach is usually:

Option 1: Delay Go Live Until After Year End
This is the cleanest option.

You complete the year in your existing system, then move to Navigator at the start of the next financial year.

Benefits:

• simplest reconciliation

• clean opening balances

• easiest for your accountant

Downside:

• you delay using Navigator

Option 2: Switch Before Year End With a Clean Cut Off
If you must go live before year end:

• choose a single cut off date

• stop posting transactions in the old system from that date onwards

• import balances into Navigator as at that cut off point

• continue all transactions only in Navigator

This reduces duplication risk and avoids trying to reconcile two live systems.

Downside:

• your year end will be split across two systems

• your accountant may need to review both systems for evidence

What You Must Do If Switching Before Year End
If you go live close to year end, you must prepare properly.

Before go live:

• reconcile your old system up to the cut off date

• confirm your debtor and creditor balances

• export invoice by invoice sales ledger and purchase ledger data

• record your total sales ledger and purchase ledger balances for reconciliation

After go live:

• post all invoices, receipts, and payments in Navigator only

• do not duplicate postings in your old system

• retain access to your old system for year end reference and invoice history

What to Tell Your Accountant
If you go live close to year end, inform your accountant early.

Tell them:

• the go live date

• the cut off point used for opening balances

• what system contains which part of the year

• where supporting invoices and audit trail are stored

This avoids confusion later during year end accounts preparation.

Common Problems to Watch For

1. Duplicate invoices
   Happens when transactions are entered in both systems or imported after posting has already started.

2. Control accounts not matching
   Navigator automatically posts stock and sales movements. Your old system may not reflect these the same way.

3. Nominal code mismatch
   Navigator uses a structured dealer based nominal layout. Your old system may group income differently.

4. Year end confusion
   Invoices may exist in one system while payments exist in another. This creates reconciliation delays.

Recommended Checklist
Before confirming your go live date, check:

• Are you within 30 days of year end?

• Are you also within a VAT quarter end?

• Do you have time to reconcile opening balances properly?

• Can you stop using the old system completely from the cut off date?

• Do you have invoice level sales and purchase ledger exports ready?