How to use the chart of accounts template
- Edit the list of accounts. Each has an optional number, a name, a type (asset, liability, equity, revenue or expense) and optional notes. The nine example accounts are a starting point.
- Leave a number blank and the next free number in that type's block is filled in: 1000s for assets, 2000s for liabilities, 3000s for equity, 4000s for revenue, 5000s for expenses, counting up by 10. Type your own number to keep it.
- Set the sheet title, your business name, whether to show the notes column and how many blank rows to leave at the end.
- Check the preview, then press Print or Download PDF. Tick Remember my entries in this browser to keep your list for next time.
The example chart
With the example accounts and blank numbers, Cash is 1000, Accounts Receivable 1010 and Equipment 1020, which are assets with a normal debit balance. Accounts Payable is 2000 and Loan Payable 2010, both liabilities with a normal credit balance. Owner Equity is 3000, Sales Revenue 4000, and Rent Expense and Utilities Expense are 5000 and 5010.
If you type 1500 for Vehicles and leave Cash blank, Cash is numbered after the highest asset number, 1510. The chart is always sorted by number. The leading digit tells you the type at a glance, and the gaps of ten leave room to add accounts between existing ones without renumbering.
What a chart of accounts is
A chart of accounts is the list of every account a business uses to record money: where it is held, what it owes, what it earns and what it spends. Every transaction is recorded against these accounts, so a clear list makes bookkeeping and reports easier. Accounts are grouped by type, and the numbering makes the groups easy to find.
The normal balance is the side, debit or credit, that increases the account. Assets and expenses are increased by debits, and liabilities, equity and revenue by credits. The sheet shows it for each account, as a reminder when you record entries.
Keeping the chart useful
Start with few accounts and add more only when you need a separate total. A small business often does well with a dozen or two. Use clear names, avoid two accounts that mean the same thing, and write a note where an account has a particular use. The numbering convention shown, with 1000s for assets and so on, is common but is an example and not a rule: use the scheme your accountant or software uses.
This template is a list, not a bookkeeping system, and the names and numbers are only examples. Ask your accountant which accounts you need, as requirements differ by business and place. Next, post transactions with the journal entry generator, keep a general ledger page for each account, and see revenue and expense accounts together in the profit and loss statement generator.
Assumptions and limits
- Account names, numbers and notes are examples to edit. They are not a required or recommended set of accounts.
- Automatic numbering starts each type at its block (1000, 2000, 3000, 4000 or 5000) and goes up by 10 after the highest number used in that block.
- Numbers must be unique and 1 to 6 digits. Up to 120 accounts fit.
- The sheet is a list and does not check that your accounts follow any accounting standard.
Frequently asked questions
What is a chart of accounts?
It is the numbered list of all the accounts a business uses to record transactions, grouped into assets, liabilities, equity, revenue and expenses.
How should I number my accounts?
A common approach gives each type a block of numbers, such as 1000s for assets and 5000s for expenses, with gaps so you can add accounts later. Your accountant or software may prefer another scheme.
What is a normal balance?
It is the side, debit or credit, that increases the account. Assets and expenses normally carry debit balances, while liabilities, equity and revenue normally carry credit balances.
Is my list saved?
Only if you tick Remember my entries, and then only in this browser. Nothing is uploaded.