5. What are the benefits to designing an accounting system while you are planning a new business?
Designing the accounting system, at least the main elements such as the chart of accounts, is amazingly useful. It forces you to think about the information that will be collected and what data you will need to monitor operations and make decisions. You also focus on revenue and expenses to determine the important categories that you will need. Ultimately, you have to picture yourself in the day-to-day operations, which helps you understand how the business will actually function.