Understanding Chart of Accounts
The Chart of Accounts (CoA) is the foundation of your accounting system. It categorises all your financial transactions into logical groups.
What is a Chart of Accounts?
Think of it as a filing system for your money. Every transaction is assigned to an account, making it easy to track income, expenses, assets, and liabilities.
Account Types
Assets (1000-1999)
Things your business owns
1050 - Current Account
1100 - Trade Debtors
1200 - Stock
Liabilities (2000-2999)
Money your business owes
2100 - Trade Creditors
2200 - VAT Liability
2300 - Loans
Income (4000-4999)
Money coming into your business
4000 - Sales
4001 - Sales - Products
4002 - Sales - Services
Expenses (5000-8999)
Money going out of your business
5000 - Cost of Sales
6000 - Rent
7000 - Wages
Warning
Avoid deleting accounts that have transactions. Archive them instead to preserve your financial history.