Some members join Collective already using bookkeeping software like QuickBooks Online, FreshBooks, or Wave. Collective uses Collective Accounting for bookkeeping, so here's what happens to your old software and what to save before you cancel.
This article applies to both LLC and S Corp tier members. The payroll questions apply to S Corp tier members only.
Does Collective need access to my old bookkeeping software?
No. Our team builds a fresh set of books for your business from your connected bank accounts and the statements you upload.
What should I export before I cancel?
If your business was already operating, our team may ask you to export these reports and upload them to Documents. Export each one in both Excel or CSV and PDF:
- Balance Sheet, as of the end of last year and year to date
- Profit and Loss, for last year and year to date
- Trial Balance
- General Ledger, with transaction-level detail
- Chart of Accounts
- Bank reconciliations
- A list of any unpaid invoices
A summary PDF isn't enough on its own, since we work from transaction-level detail. We also recommend exporting a full copy of your data for your own records.
Should I cancel my old bookkeeping software?
Not right away. Wait until you've exported and uploaded the reports above and your onboarding is complete. There are a few reasons to keep it for now:
- Payroll records: If you ran payroll through your old software, we may need payroll reports from it to switch your payroll to Collective. See Switching to Collective Payroll from another payroll provider.
- Invoicing: You may be using your old software for invoicing and customer payments, and some members keep using it for that. See the invoicing question below.
- Tax records: Your old software may contain data you need for your Individual Tax Return (ITR), such as sole proprietorship income and expenses.
Will Collective transfer data from my old bookkeeping software?
No. Collective starts your books fresh, so customer and bookkeeping data isn't transferred. Export your data from your old software so you have it if you need to refer to it later. Unpaid invoices aren't brought over automatically either, so send your Collective team a list of any that are still open.
Can I use Collective Accounting for invoicing and customer payments?
Yes. You can also keep using your old platform for invoicing, as long as payments land in a bank account you've connected to Collective. To switch to Collective invoicing:
- Let your open invoices get paid where they are.
- Recreate any recurring invoices in Collective. We don't move recurring invoices over for you.
- Cancel your old platform.
I used my old software for payroll. What happens to my payroll?
S Corp tier members run payroll through Collective Payroll. If you ran payroll before joining, see Switching to Collective Payroll from another payroll provider for what we'll need and when to cancel your old payroll.
If you have questions about your old software, reach out to your Collective team. They're here to help.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice.