Accounting terms

Dictionary of all accounting terms

What is Chart of Accounts?

A chart of accounts is a list of accounts that a company owns, with its corresponding type as well as the account balance.

Each account is a unique record for a type of asset, liability, equity, revenue, or an expense. Chart of accounts is a tool to help a business organize their financial information within their general ledger under a variety of subcategories.

A medium sized enterprise may have include these subcategories under their asset account -

Company liabilities may consist of these categories -

Keep in mind these chart of accounts are only examples, you may use more or less subcategories. This will all depend on the size and complexity of your business.

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