Graphite reposted this
There is a time and place for putting things in Alphabetical Order. When I was a kid, Alphabetical Order meant I was usually the first or second kid seated in the classroom because my last name started with B. But… Presenting financial statements for your company in Alphabetical Order probably doesn’t make sense. Many startups begin with a default alphabetical chart of accounts, like the one QuickBooks provides: Advertising, Bank Fees, Contractors, etc. This jumble can be a headache to navigate as your business grows and your transactions increase. Use a standard chart of accounts tailored to your industry from the beginning — this simplifies management and scalability of your financial operations. On the expense side, I prefer to: Make the top level expense a Department (maybe General and Administrative, Sales and Marketing or Research and Development) ↳ Then within each of those, group personnel related expenses together and then other things together. If you can’t quickly see how much money you’re spending in each department, let alone by vs other stuff in each department, it will only get harder to understand over time. By setting these foundations early, you can scale your business without the financial oversight becoming overwhelming. We have a fantastic template to help you with this... Interested? Send me a DM & I'll send a copy your way.