What is a chart of accounts?
The chart of accounts is the tree of ledger accounts your business uses to classify every transaction. Standard 5-part structure, sample CoAs, and a template.
A chart of accounts is the spine of your bookkeeping. Every transaction hits one or more CoA accounts; every report (P&L, balance sheet, tax return) rolls up from them. Get the CoA right at day one and every downstream process is easier.
Step-by-step
Assets (1000s), Liabilities (2000s), Equity (3000s), Income (4000s), Expenses (5000-7000s).
Reserve blocks so you can insert new accounts without renumbering.
40-60 accounts is plenty. Sub-accounts can grow later.
This is where Convert Bank Statements fits — auto-classify by counter-party and let you finalise.
FAQs
Small business: 40-60. Growing SaaS: 80-120. Enterprise: 300+. Beyond that, you're producing reports nobody reads.
Yes — inactivate accounts you don't use, add new ones as needed. Never delete an account with historical transactions.
Yes — each ships with a default per business type. Start there and customise.