Composed by Jacqueline Tiso, founder and CEO of JMT Consulting, and posted on March 16, 2021, to the Nonprofit Resource Hub, “What’s Wrong With Your Chart of Accounts and the Solutions You Need to Make It Right” looks at best practices for managing a chart of accounts, as well as common missteps along the path.
“Your chart of accounts is the framework that gives insight into your nonprofit organization’s financial health. If well-designed, a COA organizes all your agency’s accounting, reporting, and other organizational information to set you up for informed decision making under an established process. Often due to a lack of resources, many nonprofits struggle to keep well-managed COAs. That disorganization can lead to inefficient or broken processes, making visibility difficult to achieve. If you’re struggling to manage your chart of accounts, it may be time to conduct an audit.”