Chart of accounts

A Chart of Accounts (COA) is a structured list of all the accounts used in a business’s general ledger to record financial transactions.

It forms the basis for structuring financial data and ensures consistency in bookkeeping and reporting. The COA typically includes five main account types: assets, liabilities, equity, revenue, and expenses. Each account is usually assigned a unique code or number to simplify tracking and reporting. By classifying transactions under the correct accounts, businesses can produce accurate financial statements and better monitor their financial position.

A well-structured COA also supports budgeting, auditing, and compliance with financial reporting standards.