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A chart of accounts is a lot like the game Jenga. If you take a block away from one section of your business, you have to add it back someplace else.

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This is a partial listing of another sample chart of accounts. Note that each account is assigned a three-digit number followed by the account name. The first digit of the number signifies if it is an asset, liability, etc. For example, if the first digit is a "1" it is an asset, if the first digit ...

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The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define the various accounts to be used by the business.

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A business firm needs to personalize its chart of accounts to some degree, to make sure it includes all accounts relevant to the specific business. For example, certain accounts appear in every company's chart of accounts, such as Cash or Accounts Receivable.

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A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger. A company has the flexibility to tailor its chart of accounts to best suit its needs, including adding accounts as needed.

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