The chart of accounts, concept & design

The chart of account (CoA) is one of the most important structures in business. It reflects all the activities a business is involved in and it provides a foundation for the majority of financial and management reporting. Correct use of the chart of accounts can both simplify operations and improve decision making capability.

Often on accounting projects, there is a gap between accounting expertise and systems expertise, this can result in a poor CoA design. This can easily be overcome by understanding the historical context and modern-day principles that surround the CoA. We can then better understand the implementation options in business systems. This article will look at three topics:

• Part I: Accounting: history & modern principles;
• Part II: Implementing within business systems with SAP as an example;
• Part III: Common pain points and improvement initiatives.

Check out the detailed article on my projects page.