A Chart of Accounts is a structured listing of all financial accounts used by a business to record transactions in the general ledger.
The COA typically organizes accounts into primary categories correlated to various parts of the business such as Assets, Liabilities, Equity, Revenue and Expenses to categorize and track financial transactions.
The COA helps ensure businesses are conforming to accounting standards, such as Generally Accepted Accounting Principles (GAAP) and the Financial Accounting Standards Board (FASB).
If you are just starting your business and need an illustration of a Chart of Accounts to get started, you can find an example by clinking the link below.