What are the Types of Accounts Under COA?
The five major types of accounts under the Chart of Accounts are Assets, Liabilities, Revenue, Expense, and Equity. Some firms add more types of accounts to this list as per their needs and requirements.
Understanding COA Categories
A Chart of Accounts (COA) is a financial map that organizes all transactions into categories. The main types of accounts include:
1. Assets – Everything the business owns, such as cash, inventory, and equipment.
2. Liabilities – Debts and obligations, like loans and accounts payable.
3. Equity – Owner’s interest in the business.
4. Revenue – Income from sales and other sources.
5. Expenses – Costs incurred to run the business.
Our bookkeeping services ensure your COA is structured for accuracy. We work with clients nationwide, from California to New York.
FAQs
Why is the COA important?
It helps organize financial data for accurate reporting and tax compliance.
Can I customize my COA?
Yes. It should fit your business’s specific needs.
How often should I review it?
At least annually to merge duplicates and update categories.
Is there a standard numbering system?
Yes, but it can be adjusted to your business.
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