A chart of accounts (COA) is an organized master list of every account a company uses in its accounting system. It serves as the framework for recording all financial transactions.
Accounts are typically organized into five categories: Assets, Liabilities, Equity, Revenue, and Expenses. Each account has a unique number and name — for example, Account 1000 might be "Cash" and Account 5000 might be "Sales Revenue."
The chart of accounts is customized to each business. A manufacturing company will have different accounts than a consulting firm. A well-designed COA makes bookkeeping, reporting, and tax filing much easier.