The accounts used in your accounting software, such as assets, liabilities, revenues, and expenses, are listed in your chart of accounts. Your chart of accounts will be more logically ordered and understandable if you clean it up.

To clean up your chart of accounts, follow these steps:

• Review all accounts to ensure that they’re necessary and relevant to your business.
• Merge duplicate or unnecessary accounts.
• Rename accounts to make them more descriptive and easy to understand.
• Create new accounts as necessary to better track your business transactions.