The chart of accounts organizes financial transactions to allow you and your client to analyze the business’s financial data, run financial reports, and prepare for taxes.
What is a chart of accounts?
- A chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in the general ledger of a company, broken down into subcategories.
- It is used to organize finances and give interested parties, such as investors and shareholders, a clearer insight into a company’s financial health.
- To make it easier for readers to locate specific accounts, each chart of accounts typically contains a name, brief description, and an identification code.
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