Ensuring that the chart of accounts is applied uniformly within a department or across a group of reporting entities requires coordination and communication. In a group structure, each reporting entity may have its own chart of accounts that is tailored to its specific operations. However, the overall structure of the chart of accounts should be consistent across the group. This can be achieved through regular communication and training, but most of all through a clear accounting manual that provides all users with an up-to-date understanding of the chart of accounts with definitions, do’s and don’ts for each account based on business practices and references to the relevant accounting policy or accounting treatment, for example.
This is all covered in the Fidugius Accounting & Reporting Manual and will ensure the correct application of the chart of accounts and result in reliable reporting of the transactions that have occurred during the period.