Chart of Accounts Definition

A chart of accounts is a structured list that organizes all of the different transactions that occur in your business, broken down into easy-to-use categories (accounts).

Accounts Extended Definition
A chart of accounts (COA) is a list of “accounts” (categories of expenses and incoming money) that is used to organize a company’s finances.

A COA uses alphanumeric characters to organize the accounts, and it is used to create the general ledger. Every “account” is given its own account number that corresponds to the type of transaction for easy organization.

For example, each revenue account may be assigned a unique number between 400 and 499. A chart of accounts is used to easily organize a company’s general ledger.

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Last Updated By

Rachel Blakely-Gray | Apr 17, 2023