Chart of Accounts - What is the meaning of chart of accounts?

Q: What is the meaning of chart of accounts?

A chart of accounts (COA) is an index of all the financial accounts in the general ledger of a company. In short, it is an organizational tool that provides a digestible breakdown of all the financial transactions that a company conducted during a specific accounting period, broken down into subcategories.

Answer

A COA is a list of all the financial accounts that make up a company's general ledger. In a nutshell, it's a planning tool that breaks down the many types of financial transactions that a business made throughout a certain accounting period into a format that's easy to understand.

Chart of Accounts - What is the meaning of chart of accounts?

Other useful ERP terms

AI suggestions