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