A term often tossed around when discussing accounting or bookkeeping is the Chart of Accounts. I want to take some time today to make sure you know what it is and why it is important. But first let us look at a basic definition…
The chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.
Now that we have an idea what it is, let’s look at the component of the COA…
A term often tossed around when discussing accounting or bookkeeping is the Chart of Accounts. I want to take some time today to make sure you know what it is and why it is important. But first let us look at a basic definition…
The chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.
Now that we have an idea what it is, let’s look at the component of the COA…