Chart Of Accounts

A Chart of Accounts(COA) is a list of all account names and numbers in your company's general ledger . The chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Chart of Accounts is classified into one of the five categories :

1. Assets - It is the group of things that you own. Assets could include a car, cash, a house, stocks, or anything else that has convertible value.

2. Liabilities - It is the group of things on which you owe money liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time.

3. Equity - It is same as "net worth." It represents what is left over after subtracting your liabilities from your assets.

4. Income - It is the payment you receive for your time, services you provide, or the use of your money.

5. Expenses - It refers to money you spend to purchase goods or services provided by someone else.

Each account in the chart is assigned as unique identifier, typically an account number.For very small businesses, three digits may suffice for the account number. COA should be designed to capture financial information to make good financial decisions.

Whether you run a business or a student of business, Our online Accounting software Numia ,will help you to maintain your accounts easily.In Numia , we have many default accounts which covers almost all small scale business needs.

According to your business You can create your own accounts and account types too.