As you close accounts related to project costs, what is the best practice regarding lingering expenses?

The best practice regarding lingering expenses when closing accounts related to project costs is to close all accounting codes except for those related to follow-up activities. This approach ensures that all expenses associated with the project are accounted for and simplified, allowing stakeholders to have a clear view of the project's financials.

By closing the accounting codes associated with the project, you reduce the chance of confusion or misallocation of costs in future accounting cycles. It also ensures that only the pertinent financial activities remain open, such as those related to ongoing follow-up or project deliverables that may still require budget oversight.

Maintaining clarity in financial records is crucial for effective project management, and this method enhances the accuracy and integrity of the financial data associated with the project. As projects can incur residual expenses related to follow-ups or warranty issues, keeping those accounting codes opens potential for tracking future costs that are indeed relevant to the completed project, while allowing unrelated costs to be closed out properly.