What is a chart of accounts?
A chart of accounts is the account structure used to organize transactions into financial statement categories such as assets, liabilities, equity, revenue, direct costs, operating expenses, and other income or expense.
Business & Finance Tools
Chart of Accounts Generator
Generate a suggested chart of accounts based on industry, company size, and reporting goals. Use it as a starting point for cleaner financial reporting, KPI visibility, lender confidence, and transaction-ready financials.
Generator Inputs
Reporting Goals
Suggested Chart of Accounts
Select inputs and generate a suggested account structure. A preview is shown below.
| Number | Account | Type | Parent |
|---|---|---|---|
| 1000 | Assets | Assets | |
| 1100 | Cash and Cash Equivalents | Assets | 1000 Assets |
| 1110 | Operating Checking | Assets | 1100 Cash and Cash Equivalents |
| 1120 | Payroll Checking | Assets | 1100 Cash and Cash Equivalents |
| 1200 | Accounts Receivable | Assets | 1000 Assets |
| 1300 | Prepaid Expenses | Assets | 1000 Assets |
| 1500 | Fixed Assets | Assets | 1000 Assets |
| 1590 | Accumulated Depreciation | Assets | 1500 Fixed Assets |
| 2000 | Liabilities | Liabilities | |
| 2100 | Accounts Payable | Liabilities | 2000 Liabilities |
| 2200 | Accrued Expenses | Liabilities | 2000 Liabilities |
| 2300 | Current Portion of Long-Term Debt | Liabilities | 2000 Liabilities |
| 2400 | Long-Term Debt | Liabilities | 2000 Liabilities |
| 3000 | Equity | Equity | |
| 3100 | Owner Contributions | Equity | 3000 Equity |
| 3200 | Owner Distributions | Equity | 3000 Equity |
| 3900 | Retained Earnings | Equity | 3000 Equity |
| 4000 | Revenue | Revenue | |
| 4100 | Primary Service Revenue | Revenue | 4000 Revenue |
| 4110 | Advisory Revenue | Revenue | 4000 Revenue |
| 4120 | Project Revenue | Revenue | 4000 Revenue |
| 4200 | Other Operating Revenue | Revenue | 4000 Revenue |
| 5000 | Cost of Goods Sold / Direct Costs | Cost of Goods Sold / Direct Costs | |
| 5100 | Direct Labor | Cost of Goods Sold / Direct Costs | 5000 Cost of Goods Sold / Direct Costs |
| 5200 | Direct Materials and Supplies | Cost of Goods Sold / Direct Costs | 5000 Cost of Goods Sold / Direct Costs |
| 5210 | Contractor Costs | Cost of Goods Sold / Direct Costs | 5000 Cost of Goods Sold / Direct Costs |
| 6000 | Operating Expenses | Operating Expenses | |
| 6100 | Payroll and Benefits | Operating Expenses | 6000 Operating Expenses |
| 6110 | Owner Compensation | Operating Expenses | 6100 Payroll and Benefits |
| 6200 | Professional Fees | Operating Expenses | 6000 Operating Expenses |
| 6300 | Software and Technology | Operating Expenses | 6000 Operating Expenses |
| 6400 | Rent and Occupancy | Operating Expenses | 6000 Operating Expenses |
| 6500 | Insurance | Operating Expenses | 6000 Operating Expenses |
| 6510 | Professional Liability Insurance | Operating Expenses | 6500 Insurance |
| 6620 | Continuing Education | Operating Expenses | 6000 Operating Expenses |
| 6900 | Non-Recurring Expenses | Operating Expenses | 6000 Operating Expenses |
| 7000 | Other Income / Expense | Other Income / Expense | |
| 7100 | Interest Expense | Other Income / Expense | 7000 Other Income / Expense |
Professional Insights
Current vs. Long-Term Debt
Separating current and long-term debt supports clearer balance sheet presentation and helps lenders, investors, and buyers understand liquidity obligations.
Owner Compensation
Separating owner compensation from operating payroll can simplify normalization adjustments during valuation and diligence.
Revenue Segmentation
Tracking revenue by service line improves KPI reporting and helps management evaluate profitability across business units.
Non-Recurring Expenses
Separate tracking of unusual or non-recurring expenses can support cleaner management reporting and future transaction readiness.
Chart of Accounts Health Score
Need help cleaning up your chart of accounts?
Covault helps businesses design reporting structures that support better financial visibility, stronger controls, lender confidence, and sale-ready financials.
Why account numbering matters
A logical numbering system leaves room for expansion and helps bookkeepers, controllers, and advisors find accounts consistently as reporting needs become more sophisticated.
Why industry customization matters
Different businesses need different levels of detail. A medical laboratory, SaaS company, law firm, construction contractor, and real estate company each require accounts that reflect how revenue is earned and costs are managed.
How a clean COA supports transaction readiness
A well-designed chart of accounts can improve management reporting, support lender review, make KPI reporting easier, and help buyers or investors understand financial performance during diligence.