Any time you are establishing an accounting structure for your business, a chart of accounts is among the first things you will need to put in place to get your bookkeeping up and running.
Fortunately, with an outstanding web-based accounting system, establishing your chart of accounts is simple to perform, and in no time, you will be on the road to setting up your company’s financial records!
Before we discuss just what you’ll find in a chart of accounts, we have to answer these questions - what, exactly, a chart of accounts is and why it’s so important.
A chart of accounts is an ordered listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger. Each financial transaction is assigned to a specific account. For example, a business needs and should want to know where