Chart of Accounts

What is Chart of Accounts?

A chart of accounts is an organized list of every account in a company’s accounting system. It typically categorizes accounts into assets, liabilities, equity, revenue, and expenses, often using a numerical coding system for easy reference.

Why It Matters

• It provides the structural foundation for the entire financial reporting system.

• A well designed chart of accounts allows for detailed tracking of specific business activities.

• It ensures consistency in how transactions are recorded across different departments or locations.