What is meant by Chart of accounts?
A chart of accounts is a systematic organization of all accounts used in a company's accounting system. It serves as a template and guide for creating an individual chart of accounts that meets the specific requirements of the company. The chart of accounts ensures a uniform structure and facilitates the comparability of accounting records between different companies, especially within an industry.
Typical features of software in the area of chart of accounts include:
- Templates and Standards: Provision of standard charts of accounts (e.g., SKR03, SKR04) and industry-specific templates that serve as a basis for the individual chart of accounts.
- Customizability: Ability to customize and extend the chart of accounts to meet the specific needs of the company.
- Categorization and Structuring: Support for systematic categorization and structuring of accounts to facilitate bookkeeping and reporting.
- Integration with Accounting Systems: Seamless integration with other accounting modules and ERP systems for consistent account management.
- Automatic Account Assignment: Automatic assignment of transactions to the appropriate accounts based on predefined rules.
