What are 2 Ways you can Clean Up Chart of Accounts to Reduce the Number of Accounts Shown?
Here are two methods for cleaning the chart of accounts and reducing the number of accounts displayed:
Download Our Free Brochure →1. Account Consolidation: Analyse which accounts have overlapping or related functions. Create new, more inclusive categories or subcategories from these accounts. For instance, if you have several expenditure accounts for office supplies, combine them into one account with the name “Office Supplies Expenses.” By removing unnecessary accounts, this simplifies the chart of accounts.
2. Account reclassification: Check the classification of the current accounts and their balances. Accounts may occasionally be duplicated or incorrectly assigned, adding needless complexity. You can get rid of extra accounts and simplify the chart of accounts by reclassifying them and making sure they are properly organised.
