Week 6 Day 3 Action Items

Day 3

• [ ] Explore a sample Chart of Accounts.
• [ ] Begin setting up basic categories tailored to your business.

What is a Chart of Accounts?

A Chart of Accounts (COA) is a systematic list of all the financial accounts used by an organization, arranged in a structured manner to categorize and record financial transactions. Each account in the chart represents a unique aspect of the company's financial activities, such as assets, liabilities, equity, income, and expenses. The COA provides a standardized framework for organizing and classifying financial information, facilitating accurate and efficient recording, tracking, and reporting of a company's financial transactions.

Basic Elements of a Chart of Accounts

Assets:

• 1000 Cash
• 1100 Accounts Receivable
• 1200 Inventory
• 1300 Equipment

Liabilities:

• 2000 Accounts Payable
• 2100 Short-Term Loans

Equity:

• 3000 Owner's Capital