Accounting Terms

Chart of Accounts
A chart of accounts is simply a list of the accounts (assets, liabilities, equity, revenue and expense) that you want to track. All accounts fall into one of these five account types. Account numbers are used as an easy account identification system. A three or four number system will suffice for most businesses. After the chart of accounts, you establish a general ledger system, which is the engine tat actually runs your accounting system on a daily basis.

The following is a sample chart of accounts.