Surprise! No. The default charts of accounts embedded in QuickBooks used upon setup will be the beginning of the end. There is no semblance of compliance between a default chart of accounts and an adequate chart of accounts. For example, an adequate accounting system needs to accumulate costs by direct (by project), indirect (by cost pool) and unallowable costs. There’s no such thing in Quickbooks and since your chart of accounts is the backbone of your accounting system, recovering from this choice is very difficult. You will need to have your data file restructured or start over.
This is myth #3 of our SBIR Accounting Myths blog series. George Moker is a CPA and an entrepreneur who brings a real approach to managing the accounting needs of your firm. George created this series of blog posts to his more than 30 years of small business and startup experience in an attempt challenge the myths about an adequate accounting system and its importance within your organization.
For more information on how we can help with your SBIR accounting needs, please visit us at www.mokercpa.com