While many items could be included in the top 10 accounting issues in utilities, these are common areas of accounting issues we’ve observed in utilities where even small adjustments can lead to stronger financial reporting and improved processes.

Utilities find that the standard chart of accounts for a municipal general fund doesn’t meet their needs. General fund accounting is based on a flow of funds basis, while utilities use the accrual basis of accounting like a private sector business. The general fund chart of accounts is not a good fit.

Here is one utility’s approach to making the municipal chart of accounts string usable to meet the utility’s reporting and management needs.