🗂️ Free Chart of Accounts Template
Below is a standard chart of accounts structure: five account types (Assets, Liabilities, Equity, Income, Expenses) with sample account numbers and descriptions. Adapt the account names to your business.
A chart of accounts (CoA) is the backbone of your bookkeeping — every transaction gets posted to an account in this list. This template follows the standard numbering convention (1000s for assets, 2000s for liabilities, etc.) so it’s compatible with most accounting software. Start with these accounts and add or remove as your business needs evolve.
1xxx — Assets (What You Own)
| Fields | Description |
|---|---|
| 1000 — Cash on Hand* | Petty cash and cash drawer. |
| 1010 — Bank Account (Current)* | Primary business checking account. |
| 1020 — Bank Account (Savings) | Reserve or savings account. |
| 1100 — Accounts Receivable* | Money owed to you by customers. |
| 1200 — Inventory | Goods held for sale. |
| 1500 — Equipment | Computers, machinery, vehicles. |
| 1510 — Accumulated Depreciation | Reduction in value of equipment over time. |
2xxx — Liabilities (What You Owe)
| Fields | Description |
|---|---|
| 2000 — Accounts Payable* | Money you owe to suppliers. |
| 2100 — VAT / Sales Tax Payable | VAT collected, owed to tax authority. |
| 2200 — Salaries Payable | Wages earned but not yet paid. |
| 2300 — Loans Payable | Outstanding business loans. |
3xxx — Equity (Owner’s Stake)
| Fields | Description |
|---|---|
| 3000 — Owner’s Capital* | Money the owner has invested. |
| 3100 — Owner’s Drawings | Money the owner has withdrawn. |
| 3200 — Retained Earnings | Accumulated profit kept in the business. |
4xxx — Income (Money Earned)
| Fields | Description |
|---|---|
| 4000 — Sales Revenue* | Income from your main product or service. |
| 4100 — Service Income | Income from services rendered. |
| 4900 — Other Income | Interest, grants, miscellaneous. |
5xxx–6xxx — Expenses (Money Spent)
| Fields | Description |
|---|---|
| 5000 — Cost of Goods Sold | Direct costs of products sold. |
| 6000 — Rent | Premises rental. |
| 6100 — Utilities | Electricity, water, internet. |
| 6200 — Salaries & Wages | Employee compensation. |
| 6300 — Marketing & Advertising | Promotional spend. |
| 6400 — Software & Subscriptions | SaaS tools and licenses. |
| 6500 — Office Supplies | Day-to-day consumables. |
| 6600 — Travel & Vehicle | Business travel costs. |
| 6700 — Professional Fees | Accountant, lawyer, consultants. |
| 6800 — Bank Fees & Interest | Bank charges and loan interest. |
| 6900 — Depreciation | Allocation of equipment cost over time. |
How to use
- 1Copy the accounts above into a spreadsheet or your accounting software.
- 2Review each account — delete the ones that don’t apply to your business and add any specific ones you need.
- 3Keep the numbering convention (1xxx assets, 2xxx liabilities, etc.) so your CoA stays compatible with standard reports.
- 4Aim for 20–40 accounts — too few and you can’t see where money goes; too many and it becomes unmanageable.
- 5Assign every transaction to exactly one account — never leave a transaction uncategorised.
- 6Review your chart of accounts annually and prune accounts with zero activity.
Or automate this
Setting up a chart of accounts is the easy part — keeping every transaction correctly posted to the right account, every time, is where it gets hard. Nika can categorise transactions against your CoA automatically — from {price} per transaction.
Questions
How many accounts should my chart of accounts have?
Most small businesses need 20–40 accounts. Start lean — you can always add accounts as new expense types appear. Avoid creating a separate account for every vendor; use the vendor field in transactions instead.
Can I change my chart of accounts later?
Yes, but do it carefully. Adding new accounts is always safe. Merging or renumbering existing accounts requires updating past transactions, so plan changes at the start of a financial year and consult your accountant.