What is chart of accounts?
Chart of accounts is a widely used financial organisation tool.
There are 5 major account types in the CoA: assets, liabilities, equity, income, and expense, which lists in detail all the subjects owned by the company in each ledger. Anyone who looks at the chart can clearly understand the nature of business and financial condition of the enterprise.
Why is a chart of accounts important?
The chart of accounts is a key part in dealing with financial work. It allows every transaction of the enterprise to be traceable.
Through a reasonable comparison of the chart of accounts, the financial information of the enterprise will be accurately reflected to help the company make better financial decisions, and the accounting team will also be able to comply with the Hong Kong Accounting Standards(HKAS).
Cloud accounting solution
“Accuracy” and “efficiency” are two major difficulties when dealing with financial bookkeeping.
Taking the management of the chart of accounts as an example, the accounting team needs to spend a lot of time to compare each account information with the bank statement, and then attach the corresponding account code, account name, type and tax rate to each subject, and finally put them into categories in different subject types.
Today, industry-leading professional accounting software like Xero is helping small and medium-sized enterprises “go to the cloud”. Through its highly confidential and secure architecture, your team, accountants and financial consultants will realise real-time online collaboration, at the same time, Xero supports automatic bank transaction reconciliation, and the accounting team no longer needs to manually check whether the accounts are correct . It greatly reduces the workload and improves the overall work efficiency.
As a partner of Xero, Workstem users can push the completed payroll data to the financial system with one click through API, which saves the tedious and time-consuming import/export work with the financial team, and makes payroll + accounting more efficient.