The Complete Guide to Lacerte Data Conversion

Still, switching tax software is never a casual decision for accounting firms. Years of client data, historical returns, depreciation schedules, and firm-specific settings make migration risky if handled poorly. That’s why Lacerte Data Conversion must be planned carefully, not rushed.

This blog guides what Lacerte data conversion is, how it works, common challenges, and how firms reduce risk—especially when combined with Lacerte Tax Software Hosting or Drake Hosting.

What Is Lacerte Data Conversion?

Lacerte Data Conversion is the process of transferring tax data from another tax preparation software into Lacerte. This typically includes:

Client demographic information
Prior-year tax returns
Depreciation schedules
Federal and state data
Carryforward details

The goal is simple: start working in Lacerte without losing historical accuracy or compliance continuity.

Why Firms Move to Lacerte

Firms usually migrate to Lacerte because of:

Advanced tax calculation capabilities
Strong handling of complex returns
Multi-user support for growing teams
Robust diagnostics and compliance checks

However, these benefits only matter if historical data is intact. Poor conversion defeats the purpose of switching.

What Data Can Be Converted?

Not all data converts perfectly, and pretending otherwise is dishonest.

Commonly Converted Data

Client names and addresses
Filing status
Federal tax forms
Most state returns
Depreciation and carryforwards

Data That Often Requires Review

Custom inputs
Notes and attachments
Special elections
Certain state-specific overrides

Blunt truth: Conversion reduces manual re-entry—but it never eliminates verification.

Lacerte Data Conversion Process (Step-by-Step)

Step 1: Pre-Conversion Assessment

Before conversion, firms should:

Identify source software
Decide which tax years to convert
Clean up incomplete or outdated client files

Skipping this step guarantees post-conversion errors.

Step 2: Data Backup (Non-Negotiable)

Always create a full backup of:

Source software data
Local systems or servers

If conversion fails and you skipped backups, that’s on you—not the software.

Step 3: Conversion Execution

Lacerte provides structured conversion tools for supported software. The system imports eligible data into Lacerte’s format.

At this stage:

Data moves fast
Errors aren’t always visible immediately

Which is why validation matters.

Step 4: Post-Conversion Review

This is where disciplined firms separate themselves from careless ones.

You must:

Compare converted returns against originals
Verify depreciation schedules
Review carryforward values
Check state-specific forms

If you don’t review, expect compliance issues later.

Common Lacerte Data Conversion Challenges

1. Incomplete Data Transfer

Not all forms convert 1:1. Manual adjustments are often required.

2. Multi-User Conflicts

Running conversion on shared local systems can cause file locks and corruption.

3. Performance Bottlenecks

Conversion is resource-intensive. Weak systems slow down or fail mid-process.

This is where Lacerte Tax Software Hosting becomes relevant.

Why Hosting Improves Lacerte Data Conversion

Running Lacerte on a cloud-hosted environment provides:

Dedicated CPU and RAM
Stable disk performance
Controlled user access during conversion
Centralized data storage

Firms using Lacerte Tax Software Hosting reduce risks tied to hardware failures, local crashes, and inconsistent access during migration.

Similarly, firms transitioning from Drake often choose Drake Hosting first, then convert data in a controlled cloud environment before fully switching platforms.

When Is the Best Time to Convert?

Here’s the honest answer:

Never during peak tax season
Ideally post-season or early fall

Converting data under deadline pressure leads to skipped validations and long-term data issues.

Best Practices for a Smooth Conversion

Convert a small client batch first
Validate before full-scale migration
Restrict user access during conversion
Keep original software accessible for reference
Use hosting to ensure consistent performance

Firms that rush conversion usually end up redoing work—twice.

Final Thoughts

Lacerte Data Conversion is not a technical formality—it’s a risk management exercise. Done right, it preserves years of client history and positions your firm for scalable growth. Done poorly, it creates silent errors that surface when it’s too late.

Combining careful planning with Lacerte Tax Software Hosting or Drake Hosting gives firms the stability, performance, and control needed for a successful transition.

If your firm is switching to Lacerte, treat data conversion as a project—not a checkbox.