Your Chart of Accounts Should Make Accounting Easier

More detail doesn't always create more clarity.

Your chart of accounts is a perfect example.

Charts of accounts tend to grow over time.

Someone wants to track something, so they create an account.

Someone else wants slightly different information, so they create another.

Eventually there are so many choices that no one knows where anything belongs.

And when coding becomes subjective, consistency disappears.

A good chart of accounts should be simple, standardized and easy to use.

You can still capture management detail through tools like classes without creating a separate GL account for everything your leadership team wants to track.

The goal isn't fewer accounts just for the sake of having fewer accounts.

The goal is better financial information.

Want a starting point?

Email lori.yearwood@zealaccounting.com to ask me for our Standardized Chart of Accounts for Christian Schools.

I'll send it your way.