Bookkeeping › Computerized Bookkeeping
What is the chart of accounts (nominal codes) in accounting software?
IntermediateAnswer
The chart of accounts is the structured list of all nominal ledger accounts, each with a code and name, organized by type (assets, liabilities, capital, income, expenses). It determines how transactions are classified and how reports are grouped. Setting it up correctly is fundamental to accurate computerized bookkeeping.
e.g., 4000 Sales, 5000 Purchases, 7500 Rent,
1200 Bank, 2100 Creditors control.Real-world example Transactions are coded to the right nominal account so the profit and loss and balance sheet group correctly.