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Chart of Accounts Definition

November 9, 2015

mkappel

Term Definition
A structured list that is used to organize all of the different transactions that occur in your business; broken down into easy-to-use categories (accounts). A chart of accounts (COA) uses alphanumeric characters to organize the accounts, and it is used to create the general ledger.

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. Every “account” is given its own account number that corresponds to the type of transaction for easy organization (e.g., 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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