So, you want to learn
Chart Of Accounts
by Bean Counter's Dave Marshall

Lesson 5
Review and Final Thoughts

Introduction Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5
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What Did We Cover ?

The Introduction defined, explained, and discussed what the chart of accounts is, how it's organized by major account types and balance sheet and income statement accounts and its purpose. In addition, codes were introduced and defined.

Lesson 1 - How Codes Are Used in Conjunction with Building The Chart Of Accounts introduced you to how to use account numbering or account identifiers to uniquely identify the accounts that make up the chart of accounts.

Lesson 2 - Types of Coding Systems defined,explained, and illustrated some of the different types of coding systems that are used in conjunction with the chart of accounts.

Lesson 3 - Importance of the Chart Of Accounts discussed and explained why the chart of accounts is so important and what needs to be considered in planning and setting up a good chart of accounts.

Lesson 4 - Show Me presented an example of commonly used Balance Sheet and Income Statement accounts that are included in a Chart Of Accounts as a guide to use in developing your own. Also, you were introduced to how the chart of accounts is used with accounting and bookkeeping software and what to look for, and where to find additional help.

What Should You Now Know ?

Putting together all that we just discussed, you should now understand or at least be familiar with:

  • What the chart of accounts is.
    As stated earlier, The Chart Of Accounts is a listing of all the individual accounts in the general ledger that contains the account's name, a brief description of the account, and optional other identifiers (codes) or a coded account number assigned to aid in recording, classifying, summarizing, and reporting transactions.
  • A chart of accounts can range from very simple to very complex.
  • What codes are and how they're used to assign information and build a Chart Of Accounts.
    The brain of your Chart Of Accounts is your coding system. It determines what information and reports you can and can not produce. Just like your own brain, a good coding system allows you to organize, process, store, and retrieve needed information.
  • What to consider and think about when setting up a chart of accounts.
  • How the chart of accounts is closely related to the Balance Sheet and Income Statement.
  • Where to find samples and additional help.
  • If nothing else, the importance of setting up a good chart of accounts for your business !!!!!
Your in my interrogation room to test your knowledge about how to classify the various Balance Sheet Accounts and what you now know about the Chart Of Accounts.

For the "kid" in all of us,
try my Games.
  • Fling The Teacher Game
    The object of my Fling The Teacher Bookkeeping and Accounting Games is to build a trebuchet by correctly answering 15 questions. If you can get it completely built, you can get rid of me (at least for a little while) by using the catapult to fling me away. A trebuchet, for those like me that didn't know, is a catapult or type of medieval artillery used during sieges.
  • Basketball
    The object of my Basketball Bookkeeping and Accounting Games is to test your 3-point shooting skills in addition to testing your basic bookkeeping and accounting knowledge.
  • Walk The Plank
    The object of my Walk The Plank Bookkeeping and Accounting Games is to feed me to the sharks by making me walk the plank. You accomplish this by answering bookkeeping and accounting questions correctly.
My Last Words Of Advice

Setting up your chart of accounts for a reasonably complex business by hand, as well as recording and classifying your daily business transactions, are time consuming tasks if you choose a manual accounting system. The tasks become much easier if you use accounting software to set up and do your bookkeeping. As I mentioned earlier, many of accounting software programs have a number of "canned" chart of accounts to choose from.

In addition, for a task this important, it doesn't hurt to consult with your friendly accountant.

If you benefited from my tutorial, consider purchasing an E-book or CD version of my tutorials. Your support makes it possible for me to continue to develop and add additional new tutorials to my Bean Counter Series.
Purchase E-book or CD Versions

Once Again Your Humble Tutor
Dave Marshall
Bean Counter

Cartoons in this tutorial provided by Ron Leishman. If you enjoyed them, get some of your own Toon-A-Day.

Introduction Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5
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