How Do You Create a Sample Chart of Accounts?

How Do You Create a Sample Chart of Accounts?

Create a sample chart of accounts by listing assets, liabilities and owner's equity on one side and operating revenues, operating expenses, non-operating revenues and non-operating expenses on the other side. Break down operating revenues and expenses further if desired, notes Accounting Coach.

A chart of accounts makes it easy to record transactions into a general ledger. Small businesses may include only the information they need by adding or removing accounts.

  1. Use the right program
  2. Choose a program such as Microsoft Excel to make a chart of accounts.

  3. Label each item
  4. Choose the labels for each column based on what the business needs.

  5. Break down each category as needed
  6. Break down the assets into categories such as supplies, inventory and petty cash. List things under liabilities such as accounts payable and interest payable. Only list things the business needs to make the chart as simple as possible, states Accounting Coach.

If desired, a sample accounting chart may have a three-digit number preceding each entry. Entries starting with a "1," for example, will signify an asset. Numbers beginning with a "3" will denote a revenue account.

Sample charts may include anything the business needs and there is no specific formula to making a chart of accounts.