Though it may not be where most people start, the Chart of Accounts is a necessary stop on your path to financial efficiency. In order to introduce new software, merge business units or even implement new processes, you have to ensure the foundation can support the change. And that’s just what a Chart of Accounts (COA) is – the foundation for your General Ledger and really, the foundation of your financial reporting. When you think of it like that, there’s obvious value in reevaluating and revamping it, right?
- Different COAs exist or may not be consistent or consistently used within business units or company subsidiaries, and with different reporting priorities
- The COA has not been kept up to date with changes in your business models or statutory / regulatory reporting
- Your COA has a lack of flexibility or limited scalability to integrate growth or new business units driven through mergers and acquisitions
- There is no link between key performance indicators and the COA
- There is limited use of sub-ledger systems for low-level analysis
- The COA processes and policies are poorly defined
- It is not clear who owns the COA or has responsibility for maintaining it
- There is a lack of training on the COA or lack of management over COA changes
To learn more about The Value of Revamping Your Chart of Accounts and how we can assist, download our Whitepaper.