Companies need to have Operating Financial Statements to manage both their direct and indirect costs to produce a Gross Margin. Other financial formats may be useful for other purposes such as tax return preparation, auditing, or bank presentations. Most computerized accounting software packages including QuickBooks, Foundation, Timberline, Great Plains, Sage have the capability of generating many Financial Statements at different levels of detail providing the Chart of Accounts accumulates the financial data in sufficiently.
The Chart of Accounts is the repository for the financial ramifications of every transaction that occurs in the course of your business. Designing a well thought out Chart of Accounts not only gives you the most efficient transaction flow, but it also gives you the information you need to monitor your business on a near real-time basis. This paper gives you suggestions on how to design your chart, how to implement it, and how to maintain it once it has been installed.
The purpose of formatting financial data on an operational basis is to increase use of Financial Statements
and other financial reports, in the management review, analysis, and decision-making process.
Click the link to view / download this white paper: Structuring the Chart of Accounts
