T-shirts and Calculators: Chart of Accounts

T-shirts and Calculators: Chart of Accounts by Samantha Aycock

The accounting world is full of jargon- most of which the everyday start-up or new craft brewery may not be familiar with.  In today’s blog, we give you a short (yet concise) definition of one term you and your business should be familiar with- chart of accounts.

A Chart of Accounts is essentially just a list of different categories that a business will use to describe it’s transactions. When you set up your business, your accountant will help you design the best chart of accounts for your company. Setting up an accurate chart of accounts when you start your business will give you the organization and simplicity essential to focus on growing your startup.

Many businesses will use a similar chart of accounts, but depending on your industry- there will always be variances. Typically, we break up a chart of accounts into 4 main sections: assets, liabilities, income and expenses. Consider common business transactions you and your employees make when you design your own chart of accounts with your accountant.
It is imperative you maintain stability within your accounts and make sure that you are consistent with how you book transactions.
If you have any questions on your current chart of accounts, let us know!