Sorry but we don’t have a chart of accounts, we’ve evolved past that.

Embracing Modern Accounting: The Shift from Chart of Accounts to Worktags

Recently, while assisting a company with some Accounting tasks, I encountered a rather intriguing response when I inquired about their chart of accounts. Instead of the standard financial structure I expected, they informed me that they do not maintain a chart of accounts at all, stating they have “evolved” beyond its necessity. This concept was surprising, to say the least!

According to the team, they utilize Workday ERP, a platform that employs a system known as worktags, which effectively replaces traditional account structures. This approach allows them to categorize financial data in a more flexible and dynamic way. Curious about their unique system, they promised to arrange a meeting to explain it further.

In my response, I playfully suggested that if they don’t have a chart of accounts, at least providing me with a “chart of worktags” would be helpful. While I appreciate the innovation, I must admit I’m struggling to fully wrap my head around this new methodology.

Have you ever encountered a similar situation in your professional experience? How have you adapted to modern Accounting practices within your organization? I’m eager to hear your thoughts!