A chart of accounts is a document that numbers and lists all the financial transactions that a company conducts in an accounting period. The information is usually arranged in categories that match those on the balance sheet and income statement.

A chart of accounts is made up of five main accounts from the balance sheet and income statement: assets, liabilities, equity, revenue and expenses. These accounts are universal, and your business may incorporate additional industry-specific accounts and subaccounts.

The chart of accounts provides the name of each account listed, a brief description, and identification codes that are specific to each account. The balance sheet accounts are listed first, followed by the accounts in the income statement.