Re:Topic 5 DQ 1
The Chart of Accounts / COA is one of the utmost significant areas of a general ledger system. It is by way of this document that vital financial data is correctly and proficiently reported, therefore a regimented and effectual COA that enables reportage is of extreme significance to an institution’s Chief Financial Officer. There are several key considerations in a quality chart of accounts; two in particular are consistency and ease of use (Rylee, 2017, p. 61).
A COA should be designed as follows:
» A single, uniform chart of accounts with common definitions for accounts across the organization;
» Functionality and a basis for integration with other systems;
» A basis for standardized and flexible reporting;
» Support for accounting policies; and
» A centralized and single-point process for maintaining the chart of accounts (Rylee, 2017, p. 62).
When it comes to accounting data and how much is required in order to give the reader a clear understanding of the financial concerns of the proposal, we look at the following things-Some of the data that should be included in the proposed business plan regarding the financial picture are such things as a sales forecast of an EMR system being implemented into the current organization. Next would come an expenses budget as to how much it is going to cost to operate the EMR system. As part of this, the financial plan should project a cash-flow statement followed by income projections, assets and liabilities and a breakeven analysis as to when the EMR system will have paid for itself (Wasserman, 2018).
Rylee, C. D. (2017). So, you need a new chart of accounts. Planning for higher education, (3), 60.
Wasserman, E. (2018). How to write the financial section of a business plan. Retrieved from
A great and information packed post. Financial information forms the basis of evaluating the sustainability of an organization. In your post, you have categorically stated that a chart of account’s quality is dependent on various aspects including functionality. Zarowin and Hardin (2000) explain that financial information, in any business forms the basis of decision making as thus requiring financial data to be as accurate and easy to understand as possible. With this in mind, it is my opinion that in each of our proposal, there should be a great deal of data that can be manipulated to ease the process of decision making in our organizations being cognizant of possible consequences.
Zarowin, S., & Hardin, W. E. (2000). Finally, business talks the same language. Journal of Accountancy, 190(2), 24.
Response to Nekyelle Sumrall
Re:Topic 5 DQ 1
The Chart of Accounts is a rundown of the considerable number of records that the organization is utilizing by which to post its money related transactions. Each record has a name and a record sort and alternatively, each record may be given a specific account number. The Chart of Accounts is adaptable in that new records can be effectively included but productive Accounting Systems keep up a lean Chart of Accounts to make posting and business examination less demanding. Each record in the Chart of Accounts is named as one of five record sorts: Assets, Liabilities, Equity, Revenue/Income, and Expenses (Averkamp, 2017). The Chart of Accounts is frequently referred to as the General Ledger accounts. The General Ledger comprises of the Chart of Accounts, individual exchanges, account adjusts, and the monetary reports for a given bookkeeping period (Averkamp, 2017). At the end of the day, the General Ledger is the archive for every single money related record and articulations for a business for a specific day and age. At the point when an Accounting period is over, the bookkeeper arranges the General Ledger reports. The two most essential reports are the Balance Sheet and Income Statement. The Balance Sheet gives a monetary photo of the organization at a specific point in time by announcing its advantages, liabilities, and proprietor’s value. The Income Statement, or Profit and Loss Report, records all salary and cost account adjusts and computes Net Income (Averkamp, 2017).
In my CLC Business Plan, I want to be able to provide my clients proof of financial transactions that include the types of Chart of Accounts (assets, liabilities, equity, revenue/income, and expenses) if needed. By providing this, it would make it clever of generating an ample amount of statistical reports that provide interested parties with a clear set of data to aid in the decision-making process.
Averkamp, H. (2017). Accounting Basics. Retrieved June 18, 2017, from https://www.accountingcoach.com/accounting-basics/explanation/5
Great post, congratulations. It is a great observation you have made that an accounting system, starting with the chart of accounts, need to be dynamic enough to ensure that it accommodates the changing organization. This has been supported by Yamaguchi (2003). Dynamic systems allow a company to adopt to the changing revenues in a company’s internal and external environment. The CLC project should be made with the understanding that as a business, the agreement should be allowed before planning main of the papers is strolled.
ReferenceYamaguchi, K. (2003). Principle of accounting system dynamics–modeling corporate financial statements. In In Proceedings of the 21st International Conference of the System Dynamics Society.
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