Considered as an important feature in accounts and bookkeeping, keeps the accounts and data in a more centralized manner. When business fuels growth, the data accumulation increases which compels to maintain different accounts. To avoid confusion and inconsistency in the data management structuring accounts is necessary.

Chart of Accounts

Chart of Accounts provides an important framework for financial reporting consisting of informational fields to segregate or categorize financial data. Often small Businesses are little less influenced with this framework and realize later when there is spike in financial records. Chart of Accounts makes use of denotations for different accounts or categories. If your business has inter-company transactions then chart of accounts is a recommended technique.