What is the Chart of Accounts?

Exactly what is the Chart of Accounts used for?

The Chart of Accounts is a complete list of all the general ledger accounts used to post amounts to. The chart of accounts is a useful tool when trying to identify the best account to use when recording transactions.

Typically, the chart of accounts will begin with balance sheet accounts then profit and loss accounts. The accounts will normally be in the same order as they will be found on the the two financial statements.

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