A Chart of Accounts (COA) is the complete list of every account in your accounting system, organized by category. Think of it as the filing system for your finances — every transaction gets recorded into one of these accounts.
Groups transactions logically so you can find and report on any category instantly.
Everyone in your team records transactions to the same accounts — no guessing.
Financial statements (P&L, Balance Sheet) are generated directly from your COA structure.
Makes tax filing straightforward — expenses are categorized, deductions are trackable.
Most accounting systems use a numbered hierarchy. The first digit identifies the account type, and sub-accounts use additional digits. This makes it easy to add new accounts without reorganizing.
Resources the business owns or controls that have economic value.
Amounts the business owes to external parties.
Owner's claim on the business after all liabilities are paid.
Income earned from business operations.
Direct costs of producing goods or delivering services sold.
Day-to-day costs of running the business (not directly tied to production).
Start simple — you can always add accounts later. Don't create 200 accounts on day one.
Use a consistent numbering system. Leave gaps (1000, 1010, 1020) so you can insert new accounts between existing ones.
Match your COA to your industry. A restaurant needs 'Food Costs' and 'Beverage Costs', not 'Raw Materials'.
Review annually. Remove accounts you never use, merge similar ones, add new ones as your business grows.
Keep sub-accounts specific. 'Marketing — Google Ads' and 'Marketing — Print' are better than just 'Marketing'.
Don't create personal accounts in your business COA. Keep business and personal finances completely separate.
Pre-built COA templates for India, Ireland, Australia, UK, Singapore, Malaysia, USA, and Canada.
Auto-creates standard accounts when you sign up — Cash, Bank, Receivables, Payables, and 50+ more.
Add custom accounts anytime — sub-accounts, cost centres, and department-level tracking.
Every invoice, payment, and expense automatically maps to the correct account.
One-click financial statements generated directly from your COA.