Learn how to clean up a messy Sage Intacct chart of accounts, avoid reporting issues, and plan updates without reimplementation.
Have you ever been in this situation — you’re excited to start your new role, but as you quickly get up to speed you realize the accounting platform’s core structure, its chart of accounts, is a bit of a disaster?
Maybe the organization has experienced leadership changes, acquisitions, or years of well-intentioned additions. Whatever the cause, the result is often a bit of a Frankenstein: Inconsistent account numbering, accounts in all the wrong places, and a core structure making everyday accounting more difficult than it needs to be.
A disorganized chart of accounts affects your finance team
A messy chart of accounts can create several recurring challenges:
Financial reports are difficult to manage
Because the rule of ranges has been broken (Why is that professional services account numbered 6711 when all the others are in 5600?), new accounts are accidentally left out of account groups and reports.
Users make mistakes when coding transactions
They don't see the account they're looking for in the typical range where all the other similar accounts are, so they pick something close enough (or worse miscellaneous). Add a new employee and this problem balloons.
Month-end close takes forever
As a result, you’re left updating financial reports every month and reclassifying miscoded transactions.
Most Sage Intacct users fear there’s no way to remedy this without re-implementing, so it’s less costly to just live with this reality. There is another solution, and it may be more manageable than expected when the change is carefully planned.
Over the last few years, Intacct has introduced the ability to update general ledger account numbers and class IDs. If that sounds intimidating, you aren’t alone. Here’s what changes in the system when these updates are made and some things to consider.
What changes when you update a GL account number?
The good news — Sage Intacct automatically handles most of the heavy lifting:
- Historical Transactions in any state, pending approval, posted, draft, paid are all automatically updated to the new account number.
- Recurring AP Bills, AR Invoices, Order Entry and Purchasing template are automatically updated with the new account number.
- Purchasing and Order Entry Transaction Definitions are automatically updated as well. If previously the item GL group for Travel – Conferences was mapped to debit 6505, it will automatically be updated to debit account 5605.
- Dimension Relationships between Item and GL Account, for example, are automatically updated as well. If previously my item for Travel – Conferences had a relationship with 6505, once the account number is changed, it automatically updates to the new account.
- Bank Accounts and Credit Cards
- Budgets
- Fixed Asset Classes containing asset, depreciation, and accumulated depreciation accounts
What might not be updated automatically?
Before updating the account number, consider where this account is used and what other updates might need to be made throughout Intacct.
Account Groups
Account groups based on ranges aren’t automatically updated when an account is changed. Updating an account from 6505 to 5605 allows it to automatically fall into the corresponding range 5600-5609 for Travel Expenses. However, had my group previously been 5600-5604, I would have needed to update the account group to account for the new account.
Sage Intacct Allocations
As Sage Intacct Allocations rely heavily on account groups for both the basis and source pools, when account groups are updated, you’ll also want to update any allocation definitions. If the account is in the target JE, there’s no need to update that account number.
Smart Rules
If I have a smart rule requiring a specific department for example be coded when a travel account in the range of 5600-5604 is used, I would need to update this smart rule to account for the new account 5605.
Smart Events and Triggers
If triggers or smart events either reference the old account or need to fire for the new account, these will need to be updated.
Reporting Accounts
If you’re using these (common in charter schools to present reports in an alternative uniform COA required by the state) they’re not automatically updated and would likely require re-creating the reporting accounts.
Integrations
Integrations may have a mapping of the third-party system’s object to your GL account and dimensions (for example a campaign or product in Salesforce may be mapped to a revenue account, department, and class) which aren’t updated automatically. Consider what integrations are in place and whether any updates will need to be made in the corresponding system.
How CLA can help Sage Intacct users organize their chart of accounts
Thinking about restructuring your chart of accounts? Before you do, let's talk.
In 30 minutes, we'll assess your current structure, identify what's fixable, flag any unintended consequences, and map out a realistic path forward.