What is Chart of Accounts?
Accounting Basics
Explained Simply
The chart of accounts is organised into five main categories: Assets (what you own), Liabilities (what you owe), Equity (owner's stake), Revenue (income earned), and Expenses (costs incurred). In South Africa, there's no mandated standard, but most businesses follow a logical numbering system (e.g., 1000s for assets, 2000s for liabilities). A well-designed chart of accounts makes financial reporting, tax compliance, and auditing easier. Accounter provides industry-specific templates.
Related Terms
- General LedgerA general ledger is the master accounting record that contains all financial transactions of a business, organised by account, forming the basis for financial statements.
- Trial BalanceA trial balance is a report listing all accounts in the general ledger with their debit or credit balances, used to verify that total debits equal total credits.