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Chart of Accounts

Standard Chart of Accounts
In accounting, a standard chart of accounts is a numbered list of the accounts that comprise a company’s general ledger. Furthermore, the company chart of accounts is basically a filing system for categorizing all of a company’s accounts as well as classifying all transactions according to the accounts they affect. 

The standard chart of accounts list of categories may include the following:

  • Assets
  • Liabilities
  • Owners’ equity or Shareholder’s
  • Equity
  • Revenues
  • Cost of goods sold
  • Operating expenses
  • Other relevant accounts
    (See the following standard chart of accounts example below).

The standard chart of accounts is also called the uniform chart of accounts. Use a chart of accounts template to prepare the basic chart of accounts for any subsidiary companies or related entities. By doing so, you make consolidation easier..

Organize in Numerical System

Furthermore, a standard chart of accounts is organized according to a numerical system. Thus, each major category will begin with a certain number, and then the sub-categories within that major category will all begin with the same number. If assets are classified by numbers starting with the digit 1, then cash accounts might be labeled 101, accounts receivable might be labeled 102, inventory might be labeled 103, and so on. Whereas, if liabilities accounts are classified by numbers starting with the digit 2, then accounts payable might be labeled 201, short-term debt might be labeled 202, and so on.

Number of Accounts Needed

Depending on the size of the company, the chart of accounts may include either few dozen accounts or a few thousand accounts. Whereas, if a company is more sophisticated, then the chart of accounts can be either paper-based or computer-based. In conclusion, the standard chart of account is useful for analyzing past transactions and using historical data to forecast future trends.

You can use the following example of chart of accounts to set up the general ledger of most companies. In addition, you may customize your COA to your industry by adding to the Inventory, Revenue and Cost of Goods Sold sections to the sample chart of accounts.

SAMPLE CHART OF ACCOUNTS

Refer to the following sample chart of accounts. Each company’s chart of accounts may look slightly different. But if you are starting from scratch, then the following is great place to start.

  • 1000 ASSETS
  • 1010 CASH Operating Account
  • 1020 CASH Debitors
  • 1030 CASH Petty Cash
  • 1200 RECEIVABLES
  • 1210 A/REC Trade
  • 1220 A/REC Trade Notes Receivable
  • 1230 A/REC Installment Receivables
  • 1240 A/REC Retainage Withheld
  • 1290 A/REC Allowance for Uncollectible Accounts
  • 1300 INVENTORIES
  • 1310 INV – Reserved
  • 1320 INV – Work-in-Progress
  • 1330 INV – Finished Goods
  • 1340 INV – Reserved
  • 1350 INV – Unbilled Cost & Fees
  • 1390 INV – Reserve for Obsolescence
  • 2230 Accrued – FICA
  • 2240 Accrued – Unemployment Taxes
  • 2250 Accrued – Workmen’s Comp
  • 1440 PREPAID – Rent
  • 1450 PREPAID – Deposits
  • 1500 PROPERTY PLANT & EQUIPMENT
  • 1510 PPE – Buildings
  • 1520 PPE – Machinery & Equipment
  • 1530 PPE – Vehicles
  • 1540 PPE – Computer Equipment
  • 1550 PPE – Furniture & Fixtures
  • 1560 PPE – Leasehold Improvements
  • 1600 ACCUMULATED DEPRECIATION & AMORTIZATION
  • 1610 ACCUM DEPR Buildings
  • 1620 ACCUM DEPR Machinery & Equipment
  • 1630 ACCUM DEPR Vehicles
  • 1640 ACCUM DEPR Computer Equipment
  • 1650 ACCUM DEPR Furniture & Fixtures
  • 1660 ACCUM DEPR Leasehold Improvements
  • 1400 PREPAID EXPENSES & OTHER CURRENT ASSETS
  • 1410 PREPAID – Insurance
  • 1420 PREPAID – Real Estate Taxes
  • 1430 PREPAID – Repairs & Maintenance
  • 1700 NON – CURRENT RECEIVABLES
  • 1710 NCA – Notes Receivable
  • 1720 NCA – Installment Receivables
  • 1730 NCA – Retainage Withheld
  • 1800 INTERCOMPANY RECEIVABLES
  • 1900 OTHER NON-CURRENT ASSETS
  • 1910 Organization Costs
  • 1920 Patents & Licenses
  • 1930 Intangible Assets – Capitalized Software Costs
  • 2000 LIABILITIES
  • 2100 PAYABLES
  • 2110 A/P Trade
  • 2120 A/P Accrued Accounts Payable
  • 2130 A/P Retainage Withheld
  • 2150 Current Maturities of Long-Term Debt
  • 2160 Bank Notes Payable
  • 2170 Construction Loans Payable
  • 2200 ACCRUED COMPENSATION & RELATED ITEMS
  • 2210 Accrued – Payroll
  • 2220 Accrued – Commissions
  • 2260 Accrued – Medical Benefits
  • 2270 Accrued – 401 K Company Match
  • 2275 W/H – FICA
  • 2280 W/H – Medical Benefits
  • 2285 W/H – 401 K Employee Contribution
  • 2300 OTHER ACCRUED EXPENSES
  • 2310 Accrued – Rent
  • 2320 Accrued – Interest
  • 2330 Accrued – Property Taxes
  • 2340 Accrued – Warranty Expense
  • 2500 ACCRUED TAXES
  • 2510 Accrued – Federal Income Taxes
  • 2520 Accrued – State Income Taxes
  • 2530 Accrued – Franchise Taxes
  • 2540 Deferred – FIT Current
  • 2550 Deferred – State Income Taxes
  • 2600 DEFERRED TAXES
  • 2610 D/T – FIT – NON CURRENT
  • 2620 D/T – SIT – NON CURRENT
  • 2700 LONG-TERM DEBT
  • 2710 LTD – Notes Payable
  • 2720 LTD – Mortgages Payable
  • 2730 LTD – Installment Notes Payable
  • 2800 INTERCOMPANY PAYABLES
  • 2900 OTHER NON CURRENT LIABILITIES
  • 3000 OWNERS EQUITIES
  • 3100 Common Stock
  • 3200 Preferred Stock
  • 3300 Paid in Capital
  • 3400 Partners Capital
  • 3500 Member Contributions
  • 3900 Retained Earnings
  • 4000 REVENUE
  • 4010 REVENUE – PRODUCT 1
  • 4020 REVENUE – PRODUCT 2
  • 4030 REVENUE – PRODUCT 3
  • 4040 REVENUE – PRODUCT 4
  • 4600 Interest Income
  • 4700 Other Income
  • 4800 Finance Charge Income
  • 4900 Sales Returns and Allowances
  • 4950 Sales Discounts
  • 5000 COST OF GOODS SOLD
  • 5010 COGS – PRODUCT 1
  • 5020 COGS – PRODUCT 2
  • 5030 COGS – PRODUCT 3
  • 5040 COGS – PRODUCT 4
  • 5700 Freight
  • 5800 Inventory Adjustments
  • 5900 Purchase Returns and Allowances
  • 5950 Reserved
  • 6000 – 7000 OPERATING EXPENSES
  • 6010 Advertising Expense
  • 6050 Amortization Expense
  • 6100 Auto Expense
  • 6150 Bad Debt Expense
  • 6200 Bank Charges
  • 6250 Cash Over and Short
  • 6300 Commission Expense
  • 6350 Depreciation Expense
  • 6400 Employee Benefit Program
  • 6550 Freight Expense
  • 6600 Gifts Expense
  • 6650 Insurance – General
  • 6700 Interest Expense
  • 6750 Professional Fees
  • 6800 License Expense
  • 6850 Maintenance Expense
  • 6900 Meals and Entertainment
  • 6950 Office Expense
  • 7000 Payroll Taxes
  • 7050 Printing
  • 7150 Postage
  • 7200 Rent
  • 7250 Repairs Expense
  • 7300 Salaries Expense
  • 7350 Supplies Expense
  • 7400 Taxes – FIT Expense
  • 7500 Utilities Expense
  • 7900 Gain/Loss on Sale of Assets