USA Combining Chart of Accounts - Revenue Accounts

[Sequencetheta]

Hi Guys,

Super green accountant working at a non-profit looking for a little help. Currently, my company uses two systems for accounting MIP(Sage Funding) for our general ledger and AP activities and AcctVantage (AV) to handle our inventory and AR. We're switching over to Netsuite and I realized on our MIP chart of accounts we only have one revenue account which all the revenue from AcctVantage is rolled up into. When I took a second look at the chart of accounts from AcctVantage I realized there were multiple revenue accounts for each of our product lines. My question here is what is best practice? Is is to have multiple GL accounts for revenue or just have one?

Any advice is much appreciated!

 

[kirby]

On your new NetSuite, set up all the revenue accounts that AV has. If you use one revenue acct you will not be able to easily analyze results nor compare to your historical data in detail.

 

[Sequencetheta]

Thank you for the insight Kirby!

 

[Steve-LevelUp]

Kirby is correct here. The intention of multiple revenue lines is to give easy visibility into various revenue streams. You will also want to consider what is presented on financial statements. Most accounting systems let you consolidate accounts, but they cannot split 1 account into many. So, it is better to default to more accounts rather than fewer.

Regards.
Steve.