What is a chart of accounts?

Definition of chart of accounts

A chart of accounts is a list of all the different accounts in your business’s general ledger.

The chart of accounts doesn’t show how much the business has in each of its accounts - that is the job of the trial balance. Instead it lists all the accounts you have available to use in your business.

It will either start with income accounts and then show expense accounts, asset accounts, liability accounts and capital accounts in that order. Alternatively, it will start with asset accounts and go on to show liability accounts, capital accounts, then income accounts and finally expense accounts.