Many organisations face challenges in obtaining meaningful analysis from financial reports due complex chart of account mappings and inconsistent understanding of the types of costs to be captured in the correct codes.
- Indicators of a weak Chart of Accounts include:
- The use of multiple charts of accounts to meet different reporting priorities,
- Inconsistent use of general ledger accounts across the organisation,
- Difficulty using the chart of accounts to generate useful financial andmanagement reporting, and
- The COA has not changed even though operations have.
Redesigning a global COA for your organisation is complex but critical if you want to get more meaningful insights into your organisation’s performance and desire alignment through a common information foundation.
A well designed Chart of Account will drive operational and reporting efficiencies in your business, particularly surrounding financial close, improving the timeliness and accuracy of management reporting.
As your organisation considers the need to redesign its COA, reflect on how these best practice principles could be incorporated in your approach . We have prepared some thought leadership on how your organisation can unlock value through your COA in the attached.
If your organisation is considering redesigning its COA, or has already started on the redesign journey, and would like to discuss possible approaches, please contact us for more information on the key steps to be performed during a COA redesign.