A chart of accounts (sometimes referred to as a “COA”) lists all accounts owned by a given company that are included on the general ledger.
The chart of accounts is typically divided into balance-sheet accounts (assets, liabilities, and owner’s equity) and income-statement accounts (revenues, expenses). Each line item on the chart typically includes a numeric identifier, title, and brief description.
Chart Of Accounts Example Structure
What follows is an example chart of accounts for a small company.
How a Chart of Accounts is used
A chart of accounts (COA) is an accounting tool that can be used to get quick snapshots of certain account types (liabilities, for example), or make comparisons of a company’s finances over time. The larger and more complex the company, the more accounts will be listed in each chart.