1 Response to “Designing a Chart of Accounts”


  1. February 11, 2011 at 12:36 pm

    Not-for-profit organizations, both large and small, have very different reporting requirements compared to for-profit businesses and these reporting requirements have a direct impact on the design of the chart of accounts. As a starting point in chart of accounts design most not-for-profit organizations should begin with the unified chart of account (UCOA) and modify for their specific purpose. One of the major constraints in designing the chart of accounts is the accounting software the organization uses. A thorough understanding of the accounting software application is a must for effective chart of accounts setup. Also since the 990 requires not-for-profit organizations to categorize their expenditures into (1)program, (2)fundraising and (3)management and general the chart of accounts should be designed to easily capture and report on these different areas.


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