Chart of accounts

A chart of accounts is like a special list of all the different kinds of money things that a person or a company has. You know how you have a piggy bank and maybe you keep some coins, some paper money, and maybe even some special things like gift cards or IOUs from your friends? A chart of accounts is kind of like that, but for grown-ups and businesses!

So, on this special list, the grown-up or business keeps track of all their different types of money things they have. For example, they might list all the money in their piggy bank as "cash" and all the money they have in the bank as "checking account" or "savings account." They might also list things like "accounts receivable," which is money that other people owe them, and "accounts payable," which is money that they owe to other people.

This list is very important because it helps the grown-up or business know exactly how much money they have and where it is located. It also helps them keep track of what they owe to others and what others owe to them. By using this chart of accounts, they can organize their finances, keep accurate records, and make sure they are making smart decisions about their money!