Definition
- Chart of Accounts (CoA): The complete list of all accounts a company uses to record its financial transactions, organized systematically.
- Ledger Accounts: The individual accounts within the CoA that track specific categories such as assets, liabilities, equity, revenues, or expenses.
Purpose
- The Chart of Accounts provides the backbone for financial reporting by ensuring all transactions are consistently classified.
- Ledger Accounts hold the detailed records of each type of financial activity and serve as the foundation for journals, entries, and financial statements.
Structure
- Chart of Accounts
- Organized by account codes or numbering ranges
- Can be hierarchical (main accounts, sub-accounts)
- Includes account type classifications (Asset, Liability, Equity, Revenue, Expense)
- Ledger Accounts
- Each has an account number, name, description, and type
- Store balances and transaction history
- Can be customized per folder/company while following the general framework
Relationships
- Each folder has one Chart of Accounts.
- The Chart of Accounts contains all ledger accounts.
- Ledger accounts are referenced by journal entries (debit and credit lines) and invoice lines.
- Account balances are continuously updated through journal entries.
- The CoA is the basis for generating financial statements.
| Method | Endpoint | Description |
|---|---|---|
| POST | Create Ledger Account | Create a new ledger account |
| GET | Get Chart of Accounts | Retrieve the chart of accounts |
| POST | Get the Balance of Accounts | Retrieve balances of accounts |