What is a standard CoA?

A standard COA will be a numbered list of the accounts that fill out a company’s general ledger, acting as a filing system that categorizes a company’s accounts. It also helps with recording transactions and organizing them by the accounts they affect to help keep the finances organized.

What is a CoA & how does it work?

The COA is typically set up to display information in the order that it appears in financial statements. That means that balance sheet accounts are listed first and are followed by accounts in the income statement.

What is a CoA & a liabilities account?

Expenses. An expense account balance, for example, shows how much money has been spent to operate your business, whereas a liabilities account balance shows how much money your business still owes. When you reference your COA from within your accounting software, you might also notice a “view register” option next to an account name.