The Chart of Accounts

The Chart of Accounts is the structured set of accounts you will use to gather, record, report and analyse financial transactions.

This area is used to enter, edit and maintain your General Ledger accounts and codes. The chart of accounts enables you to set up a structure for collecting, classifying, and reporting on financial transactions.

Each general ledger account must have a description and an account type, for example, asset or liability.

There are only 4 main categories of accounts in the General Ledger

• Assets – things you own or are owed - DR
• Liabilities – things you owe - CR
• Income – Money you have earned - CR
• Expenses – Money you have spent - DR

Often these are broken down further into the following sub-categories

• 100 – 199 Sales or Other Income
• 200 – 299 Purchase or Cost of Sales
• 300 – 399 Expenses
• 400 – 499 Current Assets
• 500 – 599 Current Liabilities
• 600 – 699 Fixed Assets
• 700 – 799 Long Term Liabilities
• 800 – 899 Capital or shareholders funds