Chart of Accounts Revolution!
Challenge
Non-profit organization was using a very outdated chart of accounts that had been cobbled together, somewhat arbitrarily, over the past many years. This led to confusion, inaccuracy, and concerns internally about how to manage and use the internal accounting and finance data.
Solution
We settled on dimensional reporting to make management’s job, as well as the accounting function’s work, much more intuitive and easier to understand and follow.
Implementation
With a strategic approach, we studied the underlying issues and identified what needed to be retained with a new accounting infrastructure and chart of accounts, as well as what should go. This thorough approach allowed us to move forward in a new direction with confidence
Results
Effectively reaching our goal, the organization moved from 800+ accounts in their official chart of accounts to less than 200. This allowed the accounting functions to be simplified and streamlined, without removing any key metrics or reporting mechanisms from management. Unlocking this next level of efficiency was crucial for this non-profit who ran with a lean staff and other perpetual budget constraints.
About the Author
Matt LaFleur, CPA
CFO Partner
A Certified Public Accountant with Big 4 experience and extensive non-profit financial leadership and stewardship experience; as well as a business and tech-savvy systems thinker.
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