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Real World - Accounting: What Should You Name Your Accounts?

Compared to deciding how many accounts you need, naming accounts is a far more straight-forward, but no less important, process. Each time you create an account in QuickBooks, you can give it a unique name (and rename it in your Chart of Accounts).

 

Trevor Matheson and David O’Brien from Real World Training are back to share more practical accounting guidelines with the community, this time on account naming conventions:

 

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According to the Real World trainers, account names are more or less subjective. Give accounts meaningful, easy-to-understand names that jive with your bookkeeper’s personal tastes - it will make the process faster and infinitely less painful.

 

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I renamed my Undeposited Funds Account "Blue Vinyl Bank Bag" as a throwback to my restaurant days when we kept the store's cash in a navy blue 11x 6" bag before depositing it in the bank. Makes me nostalgic every time!

 

The names of your accounts may be different from other people’s accounts, and that’s ok. As long as the stakeholders understand each account’s function, you’re golden.

 

Keep Real World’s tips in mind when naming (or renaming) your accounts:

 

  • Less is more, shorter is better
  • Keep names simple but meaningful
  • Make names sensible and relevant
     

 

 Now it’s your turn

 

What is the strangest name you’ve ever given an account?

 

Are there any account names you refuse to change – and if so, why?