A chart of accounts (COA) is a financial listing of every account in the general ledger of a company, broken down into subcategories. It is usually sorted in order by account number, to ease the task of locating particular accounts. Introduced thousands of years ago, now chart of accounts are being used by all of accountants around the world as a standard to do their bookkeeping.
What is the Standard of Chart of Accounts?
Different countries have different standards. Commonly, it comprises of numbers only, texts only or combination between numbers and texts. This Chart of Accounts template provides common numbers and names you can use as references.
Why Chart of Accounts is important?
It is important because by segregating expenditures, revenue, assets and liabilities with COA format, analysts and investors can quickly get a sense of a company’s financial health. A well-designed COA not only meets the information needs of management, it also helps a business to comply with financial reporting standards.
How Can I Create Chart of Accounts?
You don’t have to create from the scratch. There are many references you can find in internet. You just need to check which standards that your country has applied. Accounting software usually provides several COA formats that you can choose.
How to Use this Chart of Accounts Template?
This template is part of accounting application spreadsheet. You can set its account number to any formats. Then, you can modify respective names to account names that you use. Since it is in Microsoft Excel format, you won’t have any difficulties on using this file.
As you can see in the screenshot above, there are one columns to categorize those accounts. You need to classify them into balance sheet or income statement. That’s how you can see summary of those accounts in financial statements.