The Fast Close Toolkit

CHAPTER NINEThe Common Chart of Accounts

INTRODUCTION: AMERICAN PRODUCTIVITY AND QUALITY CENTER (APQC) data shows that organizations with widespread adoption of a standard chart of accounts can shave about two days off of the time to complete their monthly consolidated financial statements, compared with organizations that have low adoption of this approach. The consistent use of names and identification numbers based on the standard chart of accounts means finance teams spend less time guessing and bridging gaps, so they can get information to decision-makers faster.

The chart of accounts provides the fundamental structure that underpins internal and external reporting within an organization. In order to ensure consistent, timely information is delivered to internal and external information users, it is essential that all finance staff understand how the chart is to be used and ensures that each account is reconciled according to corporate policy,

The number of accounts is determined by the size and complexity of a company. Additionally, the number of accounts will correlate directly to the number of general ledgers utilized by the organization.

BEST PRACTICE 7: IMPLEMENT A COMMON CHART OF ACCOUNTS

Introduction: A chart of accounts is a list of all accounts in the general ledger tracked by a single accounting system which is designed to capture fiscal information to make good fiscal decisions. Each account in the chart is assigned a unique identifier, typically an account ...