Too much of the wrong detail is accounting granularity that is technically correct but immaterial and operationally irrelevant, so it adds work every week without improving any decision. 📝Weekly Accounting strips it out during 📝Balance Sheet Clean Up.
Examples
- Deferred merchant fee expense on annual prepayments. From a 📝GAAP perspective it would be technically correct to receive a payment of $1,200 for the year and to defer the $36 merchant account fee over 12 months. The reason not to do it is that it's extra work for no reason, because it's immaterial and operationally irrelevant.
- Making a balance sheet account for every one of the states we pay taxes in. Just make one account.
- Having a lot of expense accounts with very little activity in them. Make these main 📝Expense Accounts and organize the detail in sub-accounts.
- Creating expense accounts for individual vendors with very little activity.
- Making “clearing accounts” on the balance sheet in QuickBooks “Bank” accounts.