Collective uses Collective Accounting for bookkeeping. Some members join Collective with a pre-existing bookkeeping solution (Quickbooks Online, Freshbooks, Wave, etc.). You may be wondering: what happens to my old bookkeeping software?
Does Collective need access to my old bookkeeping software?
No. Your onboarding accountant will assist you in building a fresh set of books for your s-corp using raw data from the bank.
Should I cancel my subscription to my old bookkeeping software?
Not right away. There are a few reasons to wait to cancel your subscription to your old bookkeeping software. You should ask your onboarding accountant during your training call when to cancel your old bookkeeping software.
1) If you were being taxed an s-corp before joining Collective, you may have been using your old bookkeeping platform to process payroll. Your onboarding accountant may need you to provide some payroll reports / data from your old bookkeeping platform in order to set up the new payroll software at Collective (Gusto).
2) You may have been using your old bookkeeping platform for invoicing and receiving customer payments. At Collective, some members choose to continue using their old bookkeeping platform for invoicing / receiving payments. Please see this article for more information on invoicing and customer payments.
3) Your old bookkeeping software may contain data needed for filing your individual tax return (sole proprietorship income/expenses).
Will Collective transfer customer data and bookkeeping data from my old bookkeeping platform?
No. Collective uses a "fresh start " approach when creating your account. Due to this, we encourage you to export data from your old bookkeeping software for your own record keeping / archiving purposes in case you need to refer to it in the future.
I was using my old bookkeeping platform for invoicing and receiving customer payments. Will I be able to use Collective Accounting for this?
Collective Accounting can be used for invoicing, but you may want to consider other options first. Please see this article for more information on invoicing and customer payments.
I was using my old bookkeeping platform for payroll. Will Collective Accounting be used for payroll?
At Collective, all members use Collective Payroll for payroll. If you were running payroll prior to joining Collective, your onboarding accountant will request some payroll reports / data required for setting up your account.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.