Once the decision is made to convert or upgrade existing financial systems, the big question is whether to staff the project internally or engage a consultant. Factors that weigh in this decision include the skills of the internal staff as well as their availability.

Many companies choose to bring in an experienced project professional for these initiatives. In fact, in our recent survey of 230 senior-level financial consultants, 44 percent of respondents cited financial systems conversions and upgrades as the biggest growth area of consulting over the next three years.

Consultants offer valuable expertise and assistance in all aspects of a conversion, from assessing systems requirements and establishing a budget to overseeing implementation and training. Using financial project professionals can also be a cost-effective solution.

Determine Technology Requirements
The first step in the conversion process is deciding what hardware and software applications are required. It is important in the initial stages to assess the available features that will best meet a company's needs. As the choices are narrowed, it is essential to develop a detailed budget with a line item for staff training.

Systems that can be expanded as the department grows should be considered, as well as systems that are compatible with technologies in other departments throughout the company. It is also important to allow for adequate capacity to archive older data along with future information.

Keep in mind that with the pace of technological advances, another upgrade may be needed in a few years - this should factor into the budget for the current technology changeover.

It is also vital that the new system be backed by reliable vendors who can provide technical support as needed. If appropriate, arrange for demonstration units to be installed where the finance and accounting staff can preview the new technologies.

Feedback and suggestions from employees on the selection of hardware and software should be particularly useful since they will be using the system the most. It can also help in customizing the system.

Time the Conversion Carefully
Obtain a consensus among the staff as to the timing of the conversion. Review calendars for critical projects, anticipated periods of heavy workloads and scheduled vacations. There is probably no one ideal time for the implementation, but it is possible to find a time when it can occur with as little disruption as possible.

There are two different methods to convert to the new system once it is installed. One is a "cold" cutover, which launches the new system all at once while shutting down the old one. This plan is usually the choice when staff members are completely fluent with the new system.

The second method is a "warm" cutover, which gradually activates the new system as employees complete training. Several workstations containing the old system remain available for emergency use while one functional module at a time is converted. Although this process reduces stress on staff, it takes longer, increases the risk of technical problems and ultimately costs more.

With any technology conversion, comprehensive staff training is critical to success. If possible, plan and implement a rotational schedule where part of the staff can attend training classes while new workstations are being installed at their desks. When the first group completes its training and returns to the office, another group receives instruction.

Although proper scheduling and rotational training can help maintain productivity during a technology changeover, there still will be a learning curve as employees get acclimated to the new system. Experienced accounting support specialists brought in on a project basis can help with the transition. Project professionals who are familiar with the new system may be able to perform double duty by also providing guidance to employees as they learn the new hardware and software.

Undergoing a computer system conversion is not an easy task. However, when the new system is completely installed and the staff has received proper training, the long-term benefits will far outweigh the short-term costs. These steps will help efficiently introduce new financial systems and streamline critical business functions.