A "chart of accounts" is a structured list of accounts used to organize and classify financial transactions within a company. It serves as a framework for accounting and enables consistent and systematic recording and management of business transactions. A chart of accounts consists of a hierarchy of account numbers and descriptions, organized according to the nature of transactions, account groups, and the company's structure. Typically, a chart of accounts includes accounts for assets, liabilities, equity, income, and expenses.
Typical features of software in the "chart of accounts" area may include:
Predefined account frameworks: Provision of predefined account frameworks according to applicable accounting regulations and standards such as DATEV, SKR (standard chart of accounts), or IKR (industrial chart of accounts).
Customizable account structures: Ability to customize the account structure based on specific requirements and company structure, and to add, edit, or delete individual accounts.
Account descriptions and categories: Providing descriptions and categories for each account to clearly define and document the meanings and purposes of the accounts.
Hierarchical organization: Structuring the accounts in a hierarchical order that represents the relationship and subordination between different accounts, such as using main accounts and sub-accounts.
Import and export of chart of accounts: Ability to import and export chart of accounts in various file formats for easy transfer between different systems or use of external chart of accounts.