Episode 13: Michigan Uniform Chart of Accounts for Local Government
Podcast Host: Ali Barnes, CPA
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On episode 13 of Everyday Business, host Ali Barnes, principal and member of Yeo & Yeo’s Government Services Group, is joined by Alan Panter, also a principal and member of the Government Services Group.
Listen in as Ali and Alan discuss the Michigan Uniform Chart of Accounts for local government in the second of our two-part podcast series focusing on auditing and accounting for government entities.
- Overview of the Michigan Uniform Chart of Accounts (1:13)
- Governmental accounting components that make up an account number (3:36)
- Why is the Michigan Chart of Accounts coming up now? (6:15)
- Excerpt of key implementation dates to remember from this episode:
- Compliance with the uniform chart of accounts is required, as a minimum, as of any fiscal year-end of October 31, 2022, or later. So, for a government with a December 31 year-end, the final implementation would not be required until December 31, 2022. September 30 fiscal year-ends are the last to go and would not be required to implement until September 30, 2023. Depending on what software you are using, and whether your vendor supports an in-year conversion, and how that process works, you may be able to wait until year-end to implement the uniform chart of accounts. This would be an acceptable method from a compliance standpoint but would not be the recommended method. We recommend implementing the chart of accounts as of the beginning of the fiscal year, whenever that falls. We recommend, however, that you implement the changes as of the beginning of the fiscal year, which would be January 1, 2022.
- Excerpt of key implementation dates to remember from this episode:
- What changes are in the updated chart of accounts to align general ledger accounting with some of the new standards? (8:35)
- Other fundamental changes to note (10:50)
- Recommendations for successful implementation (13:25)
- Can software such as QuickBooks help governments stay in compliance? (16:57)
- Suggested resources (18:36)
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Listen to our first episode in this two-part series: Episode 12: Single Audits for Government Entities
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The information provided in this podcast is believed to be valid and accurate on the date it was first published. The views, information, or opinions expressed during the podcast reflect the views of the speakers. This podcast does not constitute tax, accounting, legal, or other business advice or an advisor-client relationship. Before making any decision or taking action, consult with a professional regarding your specific circumstances.