Asset AccountsĪssets are what the business owns and includes the following:įixed Assets – These are physical items like computers, machinery, furniture, fixtures and fittings. It is used to see the financial health of the company. ![]() The balance sheet accounts give a snapshot of the business on any given date. It is split between bank, income, direct costs, expenses, assets, liabilities and equity. ![]() It is a simple set but will give an idea of how they are formatted. Our sample chart of accounts uses the numbering system from Xero. Using bookkeeping software is more flexible and will often save business time on the accounts. Don’t worry about the system you use, as you will soon get used to the account codes and where to add them.Īll accounting packages use an accounting chart of accounts. Sage uses a different numbering system starting from 0010 and ending 9999. Xero uses smaller numbers than QuickBooks. Xero Sample Chart of Accounts – taken from the demo DescriptionĪs you can see from the two examples, the number system is different. The bank and cash accounts on most accounting software are set up through banking rather than the CoA. Looking at different cloud accounting software, each has its standard chart numbering system. This allows the chart of accounts to be more industry-specific. When setting up the business in the software, some packages will ask for the industry of the business. Additionally, you can adjust the chart to better suit your needs by adding specific accounts. The software will have a chart of accounts pre-built into it, saving you time and effort. However, by using accounting software, this process becomes much easier. Producing a chart of accounts can be a cumbersome task if done manually. ![]() It includes 5 income accounts and 13 expense accounts. Our free Excel cashbook template allows you to name your accounts. If you use an Excel spreadsheet, you will still have a list of accounts, although this may be simplified to a cloud accounting based software package. The accounts list may also include codes that you do not require but is worth keeping for future use. Using the wrong account code or not having enough codes will limit or produce incorrect financial statements. The chart of accounts is the foundation of the businesses accounting system.
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