This article walks you through a framework to create chart of accounts for your business accounting system. After completing series of tasks listed in this article, you'll complete the chart of accounts that enables to quickly assess your business financial performance.
Chart of Accounts (CAO) is the foundation base of accounting system that enables to communicate meaningful financial information to the reader.
Step 1: Summarize key areas of your business operations.
Step 2: Structure accounts in systemic order.
Step 3: Increase degree of details