> ## Documentation Index
> Fetch the complete documentation index at: https://docs.chift.eu/llms.txt
> Use this file to discover all available pages before exploring further.

# Chart of Accounts

### 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](/api-reference/endpoints/accounting/create-ledger-account)             | Create a new ledger account    |
| GET    | [Get Chart of Accounts](/api-reference/endpoints/accounting/get-chart-of-accounts)             | Retrieve the chart of accounts |
| POST   | [Get the Balance of Accounts](/api-reference/endpoints/accounting/get-the-balance-of-accounts) | Retrieve balances of accounts  |