Chart of accounts
In Arabic دليل الحسابات
The list of every account a business posts to, grouped into assets, liabilities, equity, revenue and expenses, and often arranged as parents and children.
In plain words
Every journal line names an account from the chart, so its shape decides what the statements can show. A distributor that wants gross profit by channel needs revenue and cost accounts that split that way.
Accounts are numbered by type, with parent accounts that total the ones beneath them. Postings go to the lowest level; the parents roll the figures up for the trial balance, income statement and balance sheet.
The common mistake is adding an account for every small need. A chart with hundreds of near-duplicates splits the same cost across several accounts, and nobody trusts the totals.
- 1110 Cash on hand
- SAR 4,500
- 1120 Bank, current account
- SAR 38,200
- 1130 Bank, deposit account
- SAR 12,300
- 1100 Cash and bank
- SAR 55,000
In Axon Suite
How Axon Suite handles it
Axon Suite’s statements roll up your own chart of accounts, and each parent account totals the accounts beneath it. The chart can be brought in from a CSV file.
Feature
Trial balance, P&L and balance sheet
The trial balance, income statement and balance sheet read straight from the posted ledger. Each parent account totals the accounts beneath it, and the balance sheet tells you whether it balances.
Open: Trial balance, P&L and balance sheet