| If you plan on starting a business, a basic | | | | balance, revenue, expenditure and transfer. |
| knowledge of the accounting code guide is | | | | |
| necessary in order to keep track of your | | | | PROGRAM |
| transactions. Even if you are not a | | | | |
| bookkeeper and you decide to hire a | | | | Yet another six character code, it represents |
| professional, the basic accounting knowledge | | | | the functions of the respective company. |
| is always a plus in the success of your | | | | |
| business. | | | | ACTIVITY |
| | | | |
| Accounting information is organized within | | | | This is designed for future use. |
| the financial system of your company through | | | | |
| the Chart of Accounts (COA). A list of all | | | | LOCATION |
| account names and numbers (cost elements) | | | | |
| that appear in the company's General Ledger | | | | It is a six character code, and it is used |
| is included in this document. | | | | for identifying assets from transactions. |
| | | | |
| The COA is used to classify transactions as | | | | INDEX |
| income, expenditure, assets, liabilities and | | | | |
| equity. All financial transactions must be | | | | This one is a seven character code and it |
| coded against an internal order (indicating | | | | represents FOPAL (fund, organization, |
| ownership) and cost element (what the | | | | program, activity and location). The first |
| transaction represents), which provide the | | | | three characters of the index are letters and |
| basis for budgeting, monitoring and | | | | they represent the name of the organization. |
| reporting. The elements of the COA are: | | | | The last four identify the FOPAL |
| | | | combinations. |
| FUND | | | | |
| | | | This is a simple and basic walkthrough in the |
| This is a 6 character code which basically | | | | world of the accounting code guide. A |
| describes to source of funding in a | | | | professional bookkeeper is much more than |
| transaction. Generally, the first 5 digits | | | | that though, and if you consider an |
| represent the office of the president fund | | | | accounting career, you should know that it's |
| number, while the final digit is used to | | | | a work that requires a lot of patience, but |
| establish sub-funds for further breakdown. | | | | it can pay off in the end. |
| | | | |
| ORGANIZATION | | | | You should also consider purchasing |
| | | | accounting software (although you can also |
| It is also a 6 digit code, which represents | | | | get it for free) if you are serious about |
| the department of a company. | | | | your company. The choice is yours, and it |
| | | | really depends on the size of your |
| ACCOUNT | | | | organization also. Most of the business |
| | | | owners leave the accounting stuff to |
| It is a six character code which represents | | | | specialized people, who are able to process |
| the basic accounts classification. There are | | | | all the information correctly, people who |
| 7 different account types, and these are: | | | | have a good knowledge of the accounting code |
| assets, liability, system control, fund | | | | guide. |