Switching software without losing your history
Most people put off switching because they assume they have to move everything or start again in April. Neither is true.
Opening balances are the whole trick
You do not need to re-enter years of transactions. You need the closing position from your old system at the point you switch: bank, debtors, creditors, VAT and capital. Enter those as opening balances and your reports carry on from there rather than starting from zero.
What to actually bring across
Bring the things you will need to use again.
- Opening balances at the switch date
- Your customer and supplier list
- Unpaid invoices, so you can still chase them
- The current year's transactions if you are switching mid-year and want one continuous set
What to leave where it is
Closed years belong in the old system. Keep read access or an export for the retention period HMRC requires, and do not spend a week re-keying history you will never touch. The exception is if your accountant has asked for a specific comparative.
Common questions
When is the best time to switch?
The start of a VAT quarter or a tax year is cleanest, because the switch point aligns with a return boundary. Mid-year is entirely possible with opening balances; it just means one period spans two systems.
Will I lose my VAT history?
No, provided you keep access to the old records for the retention period. Under MTD you must keep digital records for the required period, but they do not all have to live in the same product.
Do I need my accountant to do this?
For a sole trader with a simple position, usually not. If you have a balance sheet, stock or a company, having your accountant confirm the opening balances is worth it, because an error there propagates through every subsequent report.
Last updated 2026-04-25. Thresholds, rates and allowances are indexed or reset at fiscal events and are deliberately not quoted here; check GOV.UK for current amounts.