An item often taken for granted and seldom reviewed is a company’s chart of accounts. Often a hodgepodge of random accounts created for one-off events, it can lead to confusion and erroneous reporting. It is a good idea to take a look at the chart of accounts model periodically and clean it up. As always, simplicity is desirable, though not always attainable.
Chart of Accounts Model
You might consider this model to use as a guideline for cleaning up or establishing your firm’s chart of accounts.
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Standard Chart of Accounts
Problems in Chart of Accounts Design
Chart of Accounts Example for SG&A Expenses
Chart of Accounts (COA)