Setting Up a Chart of Accounts

If you’ve just started running a business and keeping your company’s books, all this talk of accounts, credits, and debits might have you flummoxed. Accounting is a cross between mathematics and the mystical arts; its goal is to record and report the financial performance of an organization. The end result of bookkeeping and accounting is a set of financial statements (page 448), but the starting point is the chart of accounts.