A Chart of Accounts is very much like a jigsaw puzzle; they come in different sizes with different levels of detail.A 50-piece or 100-piece jigsaw puzzle is pretty easy and can be completed quickly. For most adults, however, there is very little challenge or satisfaction.A 1,000-piece jigsaw puzzle is much more difficult and can take days or weeks to complete. Personally, I do not have the patience or desire to deal with all of the little pieces. A large Chart of Accounts gives you a lot of detail, but it leaves more room for error. Also, you can obtain those details through customizing your reports.My preference is a 500-piece jigsaw puzzle. It is just right! They are relatively simple, yet satisfy my desire to complete the puzzle in a timely manner. The same holds true for a Chart of Accounts. They are simple and easy to use.
A Chart of Accounts must be simple in order to be useful. It has to satisfy the detail level you desire without becoming cumbersome. Too few accounts do not give you the detail you need, and too many accounts give you too much detail and room for error. Start with a short Chart of Accounts … you can always add to it if necessary.
(c) 2017 Carl Stoddard For more information about using the Fine-Ants in your product or service, please contact Carl at carl@4ipp.net