Expense accounts - which to use?

Question

In our chart of accounts under the expense section, we have an account for "Accounting & Legal" and also for "Professional Fees." 
 I thought that "Professional Fees" was for things like paying the fees to belong to professional organizations. I know some companies will pay the fees for professional engineers on staff, for example. 
 However, our accoutant having done year end, as part of the adjusting journal entries we received from him, assigns his invoice if you will, to "Professional Fees." 
 I am aware that "Professional Fees" is often times a revenue account whereby professionals, such as lawyers, record their sales for their services rendered. 
 So my question: even though the adjusting journal entry from the accountant puts his fees to our expense account, "Professional Fees," I actually instead put it to, "Accounting & Legal." Am I wrong in doing this?

Alwyn · Accepted Answer

"Accounting and Legal" and "Professional Fees" are frequently used interchangeably in different sets of financial records. I don't recall seeing both names in the same Chart of Accounts. However, that being said, the name of the account should describe the type of expense recorded in the account and it really doesn't matter what you call it. What is important is that consistency rules. If you have the two accounts be sure what you are recording in one is always recorded in the same account. 
I always try to use the account which the accountant has shown on the adjusting entry but I will not create a new account if the name is the only difference. Again, consistency, year over year is very important.

Sage 50 Canada

Expense accounts - which to use?

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