Developing a company chart of accounts

A company chart of accounts is an internal system according to which the company records assets, liabilities and economic events. It is called a chart of accounts and can be created at the stage of either starting a business activity or introducing full accounting. Usually we define it according to a certain pattern but it needs to be adjusted to the character of company’s activity.

The development of a company chart of accounts proposed by us includes:

• a list of accounts used by the entity:
  • general ledger accounts (synthetic accounts),
  • subsidiary accounts (analytical accounts),
  • off-balance accounts;
• description of synthetic accounts functioning, their characteristics and correspondence (mutual relations) with other synthetic accounts;
• principles of establishing subsidiary accounts (analytic accounts) in relation to specific synthetic accounts, of which they are a detail;
• indication of typical economic operations, occurring in the given company, recorded on accounts included in the company chart of accounts (records of typical operations);
• identification of accounting evidence, including substitute evidence, constituting the basis for the entries made.

We put emphasis on the technique of bookkeeping, including the principles of computer data processing.