What is a Chart of Accounts?

[charlie]

I often hear about the Chart of Accounts (COA) in bookkeeping and accounting software, but I’d like to understand exactly what it is and how it’s used.


From what I gather, it’s a structured list of all the accounts a business uses to record financial transactions — like assets, liabilities, income, and expenses. But I’m not sure how it’s organized or how businesses decide which accounts to include.

 

[BlissCore]

A Chart of Accounts (COA) is essentially a master list of all the financial accounts a business uses to track its transactions. It’s organized into categories like assets, liabilities, equity, income, and expenses, often with unique codes for easy reference. Businesses create it based on their specific operations, ensuring every type of transaction has a place, which makes financial reporting and analysis much easier.

 

[riya]

A Chart of Accounts (COA) is an organized list of all financial accounts used by a business to record transactions. It includes assets, liabilities, equity, revenue, and expenses. The COA helps categorize financial data, m