What Is a Chart of Accounts? How to Set One Up for a Small Business Step by Step

A chart of accounts (COA) is an organized list of accounts used to record business transactions and prepare financial reports. It typically includes five main categories: assets, liabilities, equity, revenue, and expenses.

To build one for a small business, start with cash, bank, receivables, inventory, payables, capital, sales, cost of goods sold, and operating expenses. Assign clear account codes and add subaccounts only when needed. Keep the structure simple and review it with an accountant. Try Cash Cloud for free to explore accounting and financial management tools.