Chart Of Accounts Tutorial
So, you want to learn Bookkeeping ! Chart Of Accounts
The chart of accounts tutorial and course defines, explains, and discusses what the chart of accounts is, how it's organized by major account types, balance sheet and income statement accounts, and its purpose. In addition, codes are introduced and defined.
In my opinion, this topic like the red-headed step-child, is not given the attention and respect it deserves. Many of the textbooks and courses that I've looked at "gloss" over the chart of accounts by giving a definition and throwing in a simple example. This tutorial is my attempt to give this topic the respect that it is due. Of course we're going to define and use examples. Unlike the others though, like learning about a clock, we're not only going to learn to tell time, but also what makes the clock tick.
What's Covered ?
The Introduction defines, explains, and discusses 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 are introduced and defined.
Lesson 1 - How Codes Are Used in Conjunction with Building The Chart Of Accounts introduces 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 defines,explains, and illustrates 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 discusses and explains 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 presents 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're 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.
Lesson 5 - Review and Final Thoughts summarizes what we covered and what you should now know about the Chart Of Accounts.