What is the Chart of Accounts?

The Chart of Accounts is the set of codes used to classify and record financial transactions in meaningful ways. These codes enable an organization to:

• identify specific "pots" of money;
• specify what that money may be used for; and
• record the transactions related to that money

By fulfilling the above functions, the Chart of Accounts also:

• facilitates financial reporting;
• provides a framework for understanding the financial results of an organization's operations; and
• controls how financial transactions and balances are collected and stored in the financial system.