Three Important Considerations When Managing Chart of Accounts

#1 
HOW MUCH DETAIL?

Think about what income streams you want to track when building your Chart of Accounts(CoA). You probably won’t want just a single CoA called, “Income” where all invoice items get thrown into it. If you did, you would have no idea how much money different aspects of your team are making. Nor would you want a separate meet fees CoA for every single meet you attend (although some larger teams do get that detailed). Be realistic about your Chart of Account setup and match it to your team's needs. If you run QuickBooks, it is a great idea to match CoAs correspondingly.

#2
CONSISTENCY MATTERS

Initially, it is important to create a Chart of Accounts that is unlikely to change for several years. This way, you can compare the results in the same account over a multi-year period. If you start with a small number of accounts and then gradually expand the number over time, it becomes increasingly difficult to obtain comparable financial information for more than the past year.

Information from AccountingTools.com 

#3
TRACK ROSTER GROUP REVENUE

Do you want to track how much revenue each roster group generates? If not, a single 'Team Dues' CoA may be enough. But if so, consider naming your CoAs 'Team Dues - Gold,' 'Team Dues - Silver,' 'Team Dues - Bronze', and so on. Since you cannot generate reports by Billing Group or Roster Group, this is how you will need to set up your CoAs if you want to track each group. This is helpful when determining the financial health of each group.

Likewise, even if your prices are the same for each Billing/Roster Group, you will need a separate Billing Group for each since you will need to associate a different CoA with each one. Roster groups are not tied to finances in any way, so you will likely name your Billing Groups the same as your Roster Groups if you want to optimize the way you track this income.

From time to time, season to season, you may need to come back to CoA Setup for modification as you add your Billing Groups and edit the Membership Dues Schedule. Since they all interact, it just takes a few simple edits and you will be on the road to billing bliss. If you need to turn on your TeamUnify Billing System, please email info@teamunify.com. If you need more information on setting up your Billing Chart of Accounts, visit our Knowledgebase to discover more!