What is a Chart of Accounts?

📚 New! Get my 2nd Edition Accounting Cheat Sheet Bundle → https://accountingstuff.com/shop A 'Chart of Accounts' is an organized list of every account held in a General Ledger. You can think of it as an index that categorizes a business's financial transactions into different accounts. What does a Chart of Accounts look like? A Chart of Accounts is usually divided into five main categories. We have Assets, Liabilities and Equity which are the Balance Sheet accounts. And then Revenue and Expenses which belong on the Income Statement. Each category is given a range of account numbers to keep things organised and easy to find. For example, Assets might use the 1000s, Liabilities could get the 2000s, Equity the 3000s, Revenue the 4s and Expenses the 5s. These five groups of accounts are the same across all businesses because they align with the structure of Financial Statements. But the specific accounts can vary depending on the industry and the type of business. 🔴Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel 🔎FAQ ▪ My Favourite Accounting Book for Beginners → http://geni.us/5mKR7m 🔝 CLOUD ACCOUNTING SOFTWARE ▪ XERO (Free Trial / Discount) → https://xero5440.partnerlinks.io/08mfchsgfw8z ▪ QuickBooks Online USA (Free Trial / Discount) → https://geni.us/quickbooksonlineusa ▪ QuickBooks Online Canada (Free Trial / Discount) → https://geni.us/quickbooksonlinecanada 🚶FOLLOW ME ON ▪ Instagram → https://www.instagram.com/accountingstuff ▪ TikTok → https://www.tiktok.com/@accounting_stuff ▪ Facebook → https://www.facebook.com/accountingstuff/ ________________________ DISCLAIMER Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you! ________________________ #accounting #accountingbasics #accountingstuff