10/16/2026
The chart of accounts is the list of all the different places you can post the transactions of your business.
There are five major categories
• Assets – something you own
• Liabilities – something you owe
• Equity – the difference between the sum of what you own and what you owe on it
These three are for-e-ver on your “balance sheet” (more to come).
• Income – money received for goods or services
• Expenses – money paid to make those goods or services
These two are for-a-year on your “Income statement” (you’ve always heard it as “P&L” don’t get us started on the “AND” part…)
Of course there are nuances; but these are the main five. In another series we’ll go through what should get posted into each of these five categories. Today what is important is knowing that no matter what accounting system you use to keep your books (quickbooks, xero, wave, simplywise, simple, autobooks aplos, momentum, odoo…etc…) every function feeds back to this nervous system.
Can't wait to learn more? Give us a call at 406-426-1026 or email [email protected] and get started on the right foot.