As you reading the article, I hope you already know what is Chart o Accounts. In very short it is a list which contains all approved accounts head, that company book their transitions. In this blog I will show you 6 easy step – Make your chart of accounts unique ID in less than 5 minutes..
These accounts typically ordered the following manner:
Owner’s Equity (Also known as Stockholder’s Equity)
Income Statement Item
Non-Operating Revenue and Gain
Non-Operating Expenses and Loss
If you understand all of these, you are now ready for papering Chart of Account. You need to use Excel. In short video I’ll show you the process One by one. Hope it will be useful for you to understand , how easy you can prepare chart of account.
You need the following Column
2. Asset Code
3. Sub Segment
4. Sub segment Code
6. Incremental ID
Step # 1
Give a suitable Code for Asset. As Example we are Assuming Asset code is 10
Step # 2
Determine how many kind of asset you have (Asset Sub Segment). Let you have two kind of Asset
1. Current Asset
2. Fixed Asset
Give Sub segment value
Current Asset = 10
Fixed Asset = 20
Step # 3
Input all of your Assets on Description Column and give a unique Value for each one.
Step # 4
Marge all Code (i.e. Asset+Asset Sub-Segemnt+ Description ID)
Use the following formula in Excel for joining/Merging the values
Step # 5
Repeat the process for liability
Step # 6
Now you will get your desired Chart of Accounts. Now you can import the data into your database or ERP system with a single mouse click.
Enjoy. If you have any difficulties, please let me know in comment or YouTube Channel.