Charts Of Accounts COA
Before recording transactions into the journal, we should first know what accounts to use. This is where a chart of accounts comes in handy.
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A chart of accounts is a list of all accounts used by a company in its accounting system. It makes the bookkeeper’s work easier.
The accounts included in the chart of accounts must be used consistently to prevent clerical or technical errors in the accounting system.
Nevertheless, take note that there is no standard chart of accounts because its contents depend upon the needs of the company using it.