What is a chart of accounts?
A chart of accounts is the structured list of every account a company uses in its general ledger, each with a code and a name, grouped into assets, liabilities, equity, income and expenses. It decides how transactions are classified and therefore how the financial statements and management reports can be produced.
Also calledCOAaccount structurenominal codes
Compare the softwareBest general ledger software →All 14 ERP and general ledger vendors →
- Groups
- Assets, liabilities, equity, income, expenses
- Detail held in
- Dimensions, not extra accounts
- Category
- ERP and general ledger
How a chart of accounts is designed
Accounts are numbered in ranges, for example one range for assets and another for expenses, with gaps left for new accounts. A good chart is detailed enough for the statutory accounts and tax returns but no more: detail by department, location, product or entity belongs in dimensions or tracking categories attached to each transaction, not in thousands of separate accounts. Groups use a common chart, or map each entity's accounts to a group chart, so consolidation can add like with like. Some countries prescribe a chart: in France the Plan comptable général sets standard account classes, and in Germany most businesses use the DATEV standard charts SKR 03 or SKR 04; UK and US companies design their own. Redesigning the chart is a common part of moving to a new ERP. Xero and QuickBooks start from templates; NetSuite, Sage Intacct and Campfire combine the chart with multiple dimensions.
Common questions
How many accounts should a chart of accounts have?+
As few as will produce the statutory accounts, tax returns and main management reports. Small businesses often use under a hundred; larger groups more, with detail held in dimensions rather than additional accounts.
What are dimensions in a chart of accounts?+
Extra fields on each transaction, such as department, location, project or entity, that let one account be reported in many ways. They keep the chart short while allowing detailed analysis.
Can the chart of accounts be changed?+
Yes, but changes should be controlled: new accounts added within the numbering ranges, old ones made inactive rather than deleted, and history mapped so reports stay comparable across periods.
Software for managing the chart of accounts
NetSuiteCloud ERP for mid-market companies outgrowing basic accounting.Profile →
Sage IntacctMulti-entity cloud financials with dimensional reporting.Profile →
XeroCloud accounting for small businesses with a large app ecosystem.Profile →
Intuit QuickBooksSmall business accounting covering books, invoicing and payroll.Profile →
CampfireAI-native ERP for startups outgrowing entry-level accounting software.Profile →
OdooOpen source modular suite spanning accounting and operations.Profile →Part of Accountio’s accounting technology coverage · Glossary
