Intro to Chart of Accounts
What is a CoA?The Chart of Accounts is the coding structure that defines an organization’s operations in financial terms and serves as the building block of the general ledger and financial reporting. Simply put, the Chart of Accounts organizes business activities using codes and hierarchies to enable financial analysis and reporting. We use this information to communicate how our transactions support Baylor’s educational and research mission. Today, we primarily use 3-4 numbers in our Chart of Accounts – fund, department, account and occasionally project. Under Ignite, our CoA will consist of 7 segments – entity, department, fund, designation, purpose, account, and activity.
Why redesign the CoA?As Project Ignite began, university leadership recognized that implementing a new system would provide a unique opportunity to reevaluate our existing CoA in order to fully meet our regulatory and reporting needs. Additionally, it provided an opportunity for alignment and create efficiencies that were not always possible using our existing Banner and PeopleSoft systems. The end goals for this project are to:
- Ensure that the CoA provides an effective and efficient structure for recording and reporting the university's financial information.
- Allow for information to be complete and on-demand.
- Align Human Capital Management (HCM), Project Portfolio Management (PPM) and ERP (Enterprise Resource Planning) systems.
- Eliminate redundancies by providing an efficient use of information.