Chart of Accounts

A Chart of Accounts is a structured list of all the financial categories a business uses to record its transactions. It acts like a financial map, organizing income, expenses, assets, liabilities, and equity into unique codes or names. This system helps a company track where money comes from and goes to, ensuring accurate financial reporting and analysis. Think of it as a detailed filing system for all financial activities, making it easier to prepare reports, monitor financial health, and comply with accounting standards.