Chart of Accounts (COA)

A Chart of Accounts (COA) is the complete listing of every account in the general ledger, organized into categories. It serves as the financial framework for classifying and recording all business transactions.

Standard account categories:

• Assets (1xxx): Cash, bank accounts, receivables, inventory, fixed assets
• Liabilities (2xxx): Payables, loans, GST payable, TDS payable
• Equity (3xxx): Share capital, reserves, retained earnings
• Income (4xxx): Sales, service revenue, interest income, other income
• Expenses (5xxx): COGS, salaries, rent, utilities, depreciation

Indian business-specific accounts:

• CGST Input/Output accounts
• SGST Input/Output accounts
• IGST Input/Output accounts
• TDS Receivable / TDS Payable (section-wise)
• TCS Receivable / TCS Payable
• RCM GST accounts
• Professional Tax payable

Best practices: Keep the COA as simple as possible while ensuring enough detail for compliance and decision-making. Use consistent numbering. Review annually and archive unused accounts. A well-designed COA makes GST filing, TDS compliance, and financial reporting significantly easier.