Defining a chart of accounts

Your chart of accounts provides a framework for your financial tracking and reporting. It is made up of the individual accounts that you use to organize your business information such as your assets, liabilities, equity, income, and expenses. This chapter focuses on the procedures required to create and maintain a chart of accounts.

Before defining your chart of accounts, carefully plan your chart of accounts and company structure on paper. The decisions you make regarding your company structure can impact the number of charts you want to define. See Defining a company.