Chart of accounts
A chart of accounts is
- a directory of all accounts of a company , business or project ,
- a chart of accounts tailored to a company ,
- an integral part of double entry bookkeeping .
Chart of accounts compared to the chart of accounts
Every company develops its own chart of accounts from a suitable chart of accounts. Depending on the industry , the chart of accounts may contain fewer or more accounts than the underlying chart of accounts. A chart of accounts is therefore a chart of accounts specifically tailored to a company - the account classes and account numbering are taken from the original chart of accounts. The more extensive this chart of accounts, the more meaningful the bookkeeping, as more individual items can be differentiated. However, if too many accounts are represented, the bookkeeping becomes confusing.
Possible adjustments
- Reduction in the number of accounts: an insurance company e.g. B. no account "raw materials".
- Increase in the number of accounts through sub-accounts
- Examples:
- The accounts payable from deliveries and services are divided into sub-accounts according to vendors.
- For better control of the vehicle costs, an account is set up for each vehicle under "current vehicle costs" and labeled with the license plate number.
- The accounts payable from deliveries and services are divided into sub-accounts according to vendors.
- Each of these accounts is given an account number. These account numbers are usually one digit longer than that of the chart of accounts (five-digit instead of four-digit or six-digit instead of five-digit).
- Renaming of individual accounts for reasons of simplicity. The account number may not be changed when renaming. For example, the “Bank” account is given the name of the house bank (Kreissparkasse, Volksbank, etc.).
Dormant accounts
Accounts that were created with the value of the opening balance sheet but were not used for postings during the financial year are called dormant accounts.
Retention period
In Germany, the retention period according to Section 257 Paragraph 4 HGB and Section 147 Paragraph 3 AO is 10 years.
In Austria, the retention period according to Section 212 (1) UGB and Section 132 (1) BAO is 7 years.
literature
- Doris Carius: Financial accounting 1. Ilmenau 2012, ISBN 978-3-86718-500-4