Hard Cutover vs Soft Cutover: QuickBooks to NetSuite

The difference between a hard and soft cutover comes down to timing. A hard cutover moves everything from QuickBooks to NetSuite at a single point in time. A soft cutover keeps QuickBooks open to finish closing the year, then migrates open transactions and the final trial balance in stages. Which one fits depends on how fast your team closes the books and whether you are migrating detailed transactions.

Migrating from QuickBooks to NetSuite is a significant step for any business. It marks a transition from a basic accounting system to a comprehensive, cloud-based Enterprise Resource Planning (ERP) solution. Getting the data migration cutover right avoids downtime and ensures a smooth transition. Below, I cover what the cutover process is, the two cutover options, and the pros and cons of each.

TL;DR

• A hard cutover stops all QuickBooks entries at a set date and moves everything to NetSuite at once. A soft cutover keeps QuickBooks open to finish the close, then migrates open transactions and the final trial balance in stages.
• Choose a soft cutover for a cleaner year-end close if your team closes fast. Choose a hard cutover for one clear transition point and simpler ongoing management.
• If you migrate detailed transactions, use a hard cutover. The soft cutover's main benefit disappears once full history lives in both systems.
• Avoid a January 1 go-live. A non-quarter month-end like December or February is easier on the accounting team.

What is a data migration cutover plan?

A data migration cutover plan is the approach an organization uses to stop entering transactions in the legacy system and begin entering them in NetSuite.

A typical comment around cutover timing is: "We want to go live in NetSuite on January 1, 2024, because I want all my 2023 transactions in QuickBooks and my 2024 transactions in NetSuite." The logic makes sense. The challenge is that no company closes its 2023 financial statements on January 1. It takes the accounting team several days or weeks to close the books.

That close timeline drives the decision between a hard cutover and a soft cutover. Each approach has pros and cons. I'll walk through both below and how each should shape your NetSuite data migration strategy.

What is a hard cutover?

A hard cutover is a complete and immediate switch from QuickBooks to NetSuite. Using the January 1 go-live example, the company would not enter any new transactions in QuickBooks after December 31, 2023.

Under this approach, the team stops entering transactions sometime in late December 2023. Assume the company closes QuickBooks on Thursday, December 28. At that point, the team loads the historical financial statements and open transactions from QuickBooks.

Then, on January 2, 2024, when the company returns from the holidays, everyone enters transactions in NetSuite. Any year-end journal entries or additional accounts payable (AP) transactions, regardless of transaction date, are entered into NetSuite.

Advantages of a hard cutover

• Immediate go-live: Once the cutover is complete, the organization is fully operational on NetSuite and using its capabilities without delay.
• Clear transition point: All financial and operational data moves from QuickBooks to NetSuite at a specific point in time. You can always rerun the closing balance sheet from QuickBooks.
• Minimized dual-system management: There is no prolonged period of running two systems in parallel, which can be resource-intensive.

Challenges of a hard cutover

• Risk of disruption: The cutover period has to be executed cleanly, or the organization risks delays. It is ideal to have a few days to complete the cutover.
• Two sources for audit requests: You will need both QuickBooks and NetSuite to pull audit requests for 2023. Most detailed transactions live in QuickBooks, but any 2023 transactions posted in 2024 during year-end close will be in NetSuite.

What is a soft cutover?

A soft cutover is a phased approach. In the January 1 example, the company keeps QuickBooks open to close the 2023 financial statements. Once accounts receivable (AR) and accounts payable (AP) are closed (typically about a week after month-end), the company migrates the open transactions. Then, once the financial statements are closed (typically a few weeks later), the company migrates the final December 2023 trial balance. Meanwhile, any transactions dated 2024 are entered directly into NetSuite.

Advantages of a soft cutover

• A clean close in QuickBooks: The company gets a clean close. All 2023 detailed transactions stay in QuickBooks, and all 2024 transactions go into NetSuite.
• Additional time for data migration: There is less pressure to migrate transactions, and each type can move in pieces. One caveat: the company cannot apply 2024 customer payments in NetSuite until the open 2023 invoices are migrated, and the same applies to AP. There is still some urgency, but less than under a hard cutover.

Challenges of a soft cutover

• Dual-system management: Running two systems simultaneously requires more resources and can cause confusion. The accounting team must determine whether each transaction belongs in QuickBooks or NetSuite.
• Complexity in data reconciliation: Keeping data consistent across two systems during the transition is challenging. You also cannot run 2024 financial statements until the historical financial statements have been migrated.

How do you choose between a hard and soft cutover?

The choice depends on a few factors:

• Level of effort at cutover: Consider how long it took the accounting team to load the first batch of historical financial statements. I recommend loading historical financial statements in two batches to get practice with the process, minimize the work required at cutover, and gauge the level of effort involved.
• Your close speed: A soft cutover works well with a quick close process because it reduces the time you run both QuickBooks and NetSuite.
• Time of year: January 1 is the worst time to cut over to NetSuite. It falls at the end of the holidays when accounting teams are busy with year-end close and January tax filings. If possible, choose a non-quarter month-end (December or February instead of January).
• Auditor sign-off: Ask your auditors in advance to confirm your approach.

What if I import my detailed transactions?

I recommend a hard cutover if you import your detailed transactions, because you will have all of the source transactions in both systems. The primary benefits of the soft cutover are eliminated when you migrate detailed transactions from QuickBooks to NetSuite.

The hard cutover is the approach we recommend when you hire OptimalData Consulting to load your detailed transactions. That said, I have successfully completed both approaches.

Frequently asked questions

Can you do a hard cutover if you migrate detailed transactions?

Yes, and it is usually the better choice. When you import detailed transactions, the source records live in both systems, so the soft cutover's clean-close advantage disappears. A hard cutover keeps the transition simpler.

When is the worst time to cut over to NetSuite?

January 1 is the worst time to cut over. It falls at the end of the holidays when accounting teams are busy with year-end close and January tax filings. A non-quarter month-end such as December or February is easier on the team.

Do you have to close QuickBooks before migrating open AR and AP?

Not entirely. In a soft cutover, you migrate open accounts receivable and accounts payable once they are closed for the period, usually about a week after month-end. You then migrate the final trial balance once the financial statements are fully closed.

Conclusion

For most fast-closing teams migrating summary balances, a soft cutover keeps year-end clean and takes pressure off the migration. If you are migrating detailed transactions, default to a hard cutover: with full history in both systems, the soft cutover's advantages fall away. Whichever you choose, confirm the approach with your auditors early and give your team a few days to execute the cutover cleanly.

OptimalData Consulting can help you prepare your data migration strategy and execute this critical task. Here is how we can help:

• Contact me for a free consultation.
• View my free article on loading historical financial statements and open transactions.
• Watch my free YouTube playlist: QuickBooks Online to NetSuite data migration.