Why a Solution Provider Normalized Chart of Accounts?
Since we initially defined the Predominant Business Model categories based on the differing management techniques needed to optimize each line of business, aligning the Chart of Accounts, and hence all the financial reporting in the company, to these, makes perfect sense. While we are doing aligning revenue with the Predominant Business Model categories, it would be just as well to align Cost of Goods Sold (COGS) and indeed to propose a complete, standard Chart of Accounts for Solution Providers which enables them to manage their business most effectively. Not only is this new Chart of Accounts, in and of itself, an excellent way to help a Solution Provider improve the management of the business, but it then creates a beneficial chain of accountability for those who promote best practices. This is shown in the chart below.
