Doing a periodic clean up on disused general ledger (GL) codes is a good idea. A few things to be mindful of.
Leaine’s Tips:
- Check for ‘locked’ codes – there might be bank rules or repeating invoices/bills to be removed first
- Don’t archive if any current year values on the code – check first OR if likely to be by year end
- Run ytd + past 2-3 years for Balance Sheet and P&L reports to check past usage
- Good for closed bank accounts / fully repaid loans
- Good for codes may need in future but not needing now (eg. wages if not yet employing staff)
- **May need to advise accountant why you have removed certain codes
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