4. Leave room for growth
- Be careful not to run out of numbers within categories so you can add new accounts later.
- Consider using 4-digit account numbers; be concise in the number of accounts you create; and leave enough gaps between account numbers.
5. Create new accounts instead of repurposing old ones
- You may have an account you no longer post entries to. So, instead of setting up a new account and account number, you just rename the old account. There is nothing wrong with this, right? If the old account was used in the past two years, you may run into comparability issues with the prior year balance since it will include those previous amounts.
- Most of the time it is better to create a new account and account number and turn the old account inactive.
6. Consult with your Accountant