Free template
Chart of accounts template
A numbered starting chart of accounts for a small U.S. business, with each account's type, the statement it appears on, its normal balance and what to record there. Rename, delete and add accounts to match how you report.
Download the template
Download the chart of accounts template .xlsx
What’s in the workbook
- About 50 accounts numbered by type: assets 1000s, liabilities 2000s, equity 3000s, revenue 4000s, cost of sales 5000s, operating expenses 6000s, other items 7000s to 9000s
- For each: type, financial statement, normal balance and a plain-English description
Blue cells are inputs. Formulas recalculate in Excel, Google Sheets and LibreOffice. The sample data below is already filled in so you can see how it works; replace it with your own.
What the sample looks like
| No. | Account | Type | Normal balance | What goes here |
|---|---|---|---|---|
| 1000 | Cash, operating account | Asset | Debit | Main checking account |
| 1010 | Cash, payroll account | Asset | Debit | Account used only for payroll |
| 1050 | Petty cash | Asset | Debit | Cash kept on hand |
| 1200 | Accounts receivable | Asset | Debit | Amounts customers owe on invoices |
| 1210 | Allowance for doubtful accounts | Contra asset | Credit | Receivables not expected to be collected |
| 1300 | Prepaid expenses | Asset | Debit | Insurance, rent or software paid in advance |
| 1400 | Inventory | Asset | Debit | Goods held for sale, at cost |
| 1500 | Furniture and equipment | Asset | Debit | Long-lived assets at cost |
| 1510 | Computers and software | Asset | Debit | Capitalized hardware and software |
| 1520 | Vehicles | Asset | Debit | Business vehicles at cost |
| 1530 | Leasehold improvements | Asset | Debit | Improvements to leased space |
| 1590 | Accumulated depreciation | Contra asset | Credit | Depreciation taken to date on fixed assets |
| 1600 | Right-of-use assets | Asset | Debit | Leased assets recognized under ASC 842 |
| 1700 | Security deposits | Asset | Debit | Refundable deposits paid to landlords and others |
| 2000 | Accounts payable | Liability | Credit | Unpaid supplier invoices |
| 2050 | Credit card payable | Liability | Credit | Company card balances |
| 2100 | Accrued liabilities | Liability | Credit | Expenses incurred but not yet billed |
| 2110 | Accrued payroll | Liability | Credit | Wages earned but not yet paid |
| 2120 | Payroll taxes payable | Liability | Credit | Withholding and employer taxes owed |
| 2200 | Sales tax payable | Liability | Credit | Sales tax collected and not yet remitted |
| 2300 | Deferred revenue | Liability | Credit | Amounts billed or collected before they are earned |
| 2400 | Lease liabilities, current | Liability | Credit | Lease payments due within a year |
| 2500 | Notes payable, current | Liability | Credit | Loan principal due within a year |
| 2700 | Notes payable, long-term | Liability | Credit | Loan principal due after a year |
| 2750 | Lease liabilities, long-term | Liability | Credit | Lease payments due after a year |
| 3000 | Owner's capital or common stock | Equity | Credit | Owners' investment |
| 3100 | Owner's draws or distributions | Equity | Debit | Withdrawals by owners |
| 3900 | Retained earnings | Equity | Credit | Accumulated profits kept in the business |
| 4000 | Product sales | Revenue | Credit | Sales of goods |
| 4100 | Service revenue | Revenue | Credit | Fees for services |
| 4200 | Subscription revenue | Revenue | Credit | Recurring subscription fees |
| 4900 | Sales returns and discounts | Contra revenue | Debit | Refunds, returns and discounts given |
| 5000 | Cost of goods sold | Expense | Debit | Cost of products sold |
| 5100 | Direct labor | Expense | Debit | Wages of staff who make the product or deliver the service |
| 5200 | Freight and shipping | Expense | Debit | Shipping costs on goods sold |
| 5300 | Merchant and payment fees | Expense | Debit | Card processing and payment fees |
| 6000 | Advertising and marketing | Expense | Debit | Ads, sponsorships and promotion |
| 6100 | Salaries and wages | Expense | Debit | Wages of administrative and sales staff |
| 6150 | Payroll taxes | Expense | Debit | Employer share of payroll taxes |
| 6160 | Employee benefits | Expense | Debit | Health insurance and retirement contributions |
| 6200 | Software and subscriptions | Expense | Debit | Business software and cloud services |
| 6300 | Rent | Expense | Debit | Office and facility rent |
| 6400 | Insurance | Expense | Debit | General liability, property and other insurance |
| 6500 | Depreciation | Expense | Debit | Depreciation of fixed assets |
| 6600 | Professional fees | Expense | Debit | Accounting, legal and consulting fees |
| 6700 | Office supplies | Expense | Debit | Supplies and small equipment |
| 6800 | Travel and meals | Expense | Debit | Business travel and meals |
| 6900 | Utilities and telephone | Expense | Debit | Electricity, internet and phone |
| 6950 | Bank fees | Expense | Debit | Bank service charges |
| 7000 | Interest income | Other income | Credit | Interest earned on deposits |
| 7100 | Gain or loss on disposal of assets | Other income | Credit | Difference between sale price and book value |
| 8000 | Interest expense | Other expense | Debit | Interest on loans and credit lines |
| 9000 | Income tax expense | Expense | Debit | Federal and state income tax |
How the numbering works
| Range | Type | Statement |
|---|---|---|
| 1000-1999 | Assets | Balance sheet |
| 2000-2999 | Liabilities | Balance sheet |
| 3000-3999 | Equity | Balance sheet |
| 4000-4999 | Revenue | Income statement |
| 5000-5999 | Cost of goods sold | Income statement |
| 6000-6999 | Operating expenses | Income statement |
| 7000-9999 | Other income, other expenses and taxes | Income statement |
Leave gaps between numbers so new accounts can slot in where they belong, and keep the order the statements use: current assets before long-term, revenue before expenses.
Designing a chart that lasts
- Match your reporting. Create an account for each line you'll want on the financial statements or a tax return, and no more. Too many accounts invite miscoding.
- Use classes or departments for detail. Most ledgers can tag transactions by department, location or project, which beats separate accounts for each.
- Keep contra accounts next to their partner, such as accumulated depreciation after fixed assets.
- Ask your tax preparer. Mapping accounts to tax return lines from the start saves rework at year end.
Entries use these numbers in the journal entry template and the general ledger template.
Chart of accounts template: questions
- What is a chart of accounts?
- The list of all accounts in a business's general ledger, each with a number and a name. It decides where each transaction is recorded and how the financial statements are grouped.
- How many accounts should a small business have?
- As many as its reporting needs and no more. A small service business can run on a few dozen; a business with inventory, payroll and loans needs more. Start with the template, delete what you don't use and add accounts only when a report needs them.
- What is a normal balance?
- The side, debit or credit, that increases an account. Assets and expenses normally carry debit balances; liabilities, equity and revenue normally carry credit balances. A balance on the other side is a signal to check the account.
- Is there a required chart of accounts in the U.S.?
- No. U.S. businesses can choose their own chart, as long as it supports their financial statements and tax returns. Some regulated industries and governments have prescribed charts.