Wednesday, August 22, 2007

Who Came Up With Your Chart of Accounts?

I wrote an article for the Summer 2004 Concrete In Focus, the NRMCA quarterly magazine, called "NRMCA Seeks to Standardize Industry Financial Reporting. I'm sad to say I don't think it is still out on the Internet.

The problem I've observed through my work in the industry is that most producer's chart of accounts have origins as follows:
  1. It was the chart that came with the accounting system
  2. It was the one they always had
  3. It was set up by the computer consultant who installed the accounting system.

This is a shame, because a good chart of accounts will simplify your financial reporting, tell you more about your operating results, and allow you to benchmark your results to the annual Industry Data Survey.

I still have reprints of the article - just write and I will be happy to send it to you.

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