Does your Chart of Accounts still fit your Organisations Reporting Requirements?

October 23rd, 2020

Are you able to output the reports that your business requires straight from your Unit4 Financials system, without resorting to end user computing? If not, then your current Chart of Accounts design may no longer be fit for purpose.

In Unit4 Financials (U4F) the chart of accounts is not just a list of GL codes. It encompasses all of the accounting codes in your business including cost centres, projects, vat rates, customers, suppliers, employees, etc. and It does this through its element structure.

Your information is held in a specific location in its element structure. Through the flexible nature of this design users are able to produce any number of customised reports to reflect the state of their business. To make the most of this level of flexibility it is vital that your element structure is optimised to produce the correct information with minimal manual intervention.

As your business grows, the nature of the reporting requirements changes, and so your original chart of accounts may no longer be suitable to support this. Whilst most small businesses initially set up their accounting to meet GAAP and FRS requirements, they can often overlook the importance of having a robust Management accounting structure .

Management Accounting allows you to create the financial reporting that provides you with the information to manage your business. With a properly designed chart of accounts you can fulfil both your internal management accounting and statutory reporting.

Remodelling your chart of accounts can allow you to produce both your management and statutory reporting using standard Unit4 Financials Functionality, such as generic browse. It will also allow you to use more powerful analytical tools like metadata queries to produce more value-added reporting.

A properly designed Managerial Accounting chart of accounts will provide the following:

Here at Millennium Consulting, we can help you design a new chart of accounts and element structure within U4F to reflect your current business needs. Our skilled staff can undertake workshops to understand your organisational reporting needs and create an element structure and chart of accounts that will drive your business. To discuss further or arrange a workshop, please reply to this email.

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