A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger . A company has the flexibility to tailor its chart of accounts to best suit its needs, including adding accounts as needed. Within the chart of accounts you will find that the accounts are typically listed in the following order: Within the categories of operating revenues and operating expenses, accounts might be further organized by business function (such as producing, selling, administrative, financing) and/or by company divisions, product lines, etc. A company's organization chart can serve as the outline for its accounting chart of accounts. For example, if a company divides its business into ten departments (production, marketing, human resources, etc.), each department will likely be accountable for its own expenses (salaries, supplies, phone, etc.). Each department will have its ...
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