why do we need to create a multiple accounts that represents one account at the end?!"chart of accounts"
Posted: 22 May 2022, 20:30
hello ,,
I know it may seem a naïve question but I want to know why do we need to create a different accounts that represents on type of account in the Charts of accounts
for example if we have a bank account should we sub divide it into Bank account 1, bank account 2 ,,etc.
so basically we are doing this so we can track every single account on it's own right ?
can we just make one account and make the GL Have more information about the JV itself
for example we get paid I'm gonna dr. bank account and in some field I'm gonna declare it's for the bank account 1
SO basically in the GL it's gonna appear with the needed information and we can track every single account but using one account
of course I'm talking here from an accounting system that can generate reports and filtering every single account easily
my question is that acceptable ? or there is other reasons we divide the accounts into smaller accounts in the COA
thanks in advance
I know it may seem a naïve question but I want to know why do we need to create a different accounts that represents on type of account in the Charts of accounts
for example if we have a bank account should we sub divide it into Bank account 1, bank account 2 ,,etc.
so basically we are doing this so we can track every single account on it's own right ?
can we just make one account and make the GL Have more information about the JV itself
for example we get paid I'm gonna dr. bank account and in some field I'm gonna declare it's for the bank account 1
SO basically in the GL it's gonna appear with the needed information and we can track every single account but using one account
of course I'm talking here from an accounting system that can generate reports and filtering every single account easily
my question is that acceptable ? or there is other reasons we divide the accounts into smaller accounts in the COA
thanks in advance