Chart of accounts
A chart of accounts is a list of accounts you use to organize your accounting records. It is made up of balance sheet accounts (assets, liabilities, and equity) and income statement accounts (income and expenses). The balance sheet and income statement accounts are made up of summary and detail accounts.
How is a chart of accounts used?
The chart of accounts is used to post journal entries and to summarize general ledger information for reports and inquiries. The account numbers and descriptions you define are reflected in your balance sheets, income statements, and other reports and inquiries. Detail accounts roll up into summary accounts to provide totals.
For more information, see the General Ledger User Guide.