Friday, March 1, 2024

Bookkeeping Part V - Expense Clasiffication

 Accurate expense classification are critical for 1) accurate financial statements, 2) accurate tax returns and 3) accurate analytics.

This starts with a chart of account that is well constructed and has enough account classifications (but not too many).

Beyond that, the day-to-day coding and classification of payables and disbursements is critical to accuracy.

Design and operational accuracy are both critical.


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