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Small business chart of accounts template (97 accounts)

This simplified chart of accounts has 97 accounts in three levels, 76 of which accept postings. It uses six classes: 1 assets, 2 liabilities, 3 owner's equity, 4 revenue, 5 cost of sales and 6 expenses, with 4-digit posting codes such as 1101 Cash on hand and 4101 Sales of goods.

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Accounts: 97
Posting accounts: 76
Levels: 3
Top-level classes: 6

Top-level classes

1
Assets
26 accounts below
2
Liabilities
16 accounts below
3
Owner's equity
9 accounts below
4
Revenue
8 accounts below
5
Cost of sales
5 accounts below
6
Expenses
27 accounts below

Why fewer accounts work better for a small business

A small business needs enough accounts to file taxes and read its profit, not a ledger that mirrors a listed company. Ninety-seven accounts cover cash and bank, receivables, stock, fixed assets, loans, owner's capital, sales and the usual expenses, and nothing more.

Every account sits three levels deep at most: 1 Assets, 11 Cash and bank, 1101 Cash on hand. That keeps the trial balance on two pages and makes miscodings easy to spot.

Classes of the small business chart
Class	Groups	Example posting accounts
1 Assets	11 Cash and bank, 12 Receivables, 13 Inventory and prepayments, 14 Fixed assets	1102 Bank: business current account, 1201 Accounts receivable
2 Liabilities	21 Current, 22 Long-term	2101 Accounts payable, 2107 VAT / sales tax payable
3 Owner's equity	31 Capital, 32 Retained earnings and closing	3101 Owner's capital
4 Revenue	41 Sales, 42 Other income	4101 Sales of goods
5 Cost of sales	51 Cost of sales	5101 Cost of goods sold
6 Expenses	61 Operating, 62 Depreciation, 63 Finance and other, 64 Income tax	6101 Salaries and wages, 6401 Income tax expense

VAT or sales tax, payroll and owner drawings

1204 and 2107 hold tax on purchases and sales, so the chart works whether you charge VAT or US-style sales tax. Payroll uses 6101 Salaries and wages, 6102 Payroll taxes and social security, and 2106 for the amounts you still owe.

Money the owner puts in goes to 3101 Owner's capital. Record withdrawals in 3102 Owner's drawings so the profit for the year stays clean; the year-end closing guide shows how profit moves to retained earnings.

When to move to a fuller chart

Switch to the IFRS template or US GAAP template when you need audited statements, manufacturing inventory, several revenue streams with their own margins, or investors who expect standard line items. Until then, eight contra accounts and seven customer or supplier accounts are all most small firms need.

Full account list

Indentation shows the hierarchy. Entries are posted to the lowest level; higher levels only add up their children.

Small business chart of accounts
Code	Account	Type	Notes
1	Assets	Asset
11	Cash and bank	Asset
1101	Cash on hand	Asset	Posting
1102	Bank: business current account	Asset	Posting
1103	Bank: savings account	Asset	Posting
1104	Online payment accounts	Asset	Posting
12	Receivables	Asset
1201	Accounts receivable	Asset	Posting · Customer or supplier required
1202	Notes and cheques receivable	Asset	Posting · Customer or supplier required
1203	Allowance for doubtful debts	Asset	Posting · Contra
1204	VAT / sales tax receivable	Asset	Posting
13	Inventory and prepayments	Asset
1301	Inventory: goods for sale	Asset	Posting
1302	Materials and supplies	Asset	Posting
1303	Prepaid expenses	Asset	Posting
1304	Advances to suppliers	Asset	Posting · Customer or supplier required
14	Fixed assets	Asset
1401	Land and buildings	Asset	Posting
1402	Equipment and machinery	Asset	Posting
1403	Vehicles	Asset	Posting
1404	Furniture and computers	Asset	Posting
1405	Accumulated depreciation: buildings	Asset	Posting · Contra
1406	Accumulated depreciation: equipment and machinery	Asset	Posting · Contra
1407	Accumulated depreciation: vehicles	Asset	Posting · Contra
1408	Accumulated depreciation: furniture and computers	Asset	Posting · Contra
1409	Software and licences	Asset	Posting
1410	Security deposits	Asset	Posting
2	Liabilities	Liability
21	Current liabilities	Liability
2101	Accounts payable	Liability	Posting · Customer or supplier required
2102	Notes and cheques payable	Liability	Posting · Customer or supplier required
2103	Credit cards payable	Liability	Posting
2104	Accrued expenses	Liability	Posting
2105	Wages payable	Liability	Posting
2106	Payroll taxes and social security payable	Liability	Posting
2107	VAT / sales tax payable	Liability	Posting
2108	Income tax payable	Liability	Posting
2109	Customer deposits and deferred revenue	Liability	Posting · Customer or supplier required
2110	Short-term bank loans	Liability	Posting
22	Long-term liabilities	Liability
2201	Long-term bank loans	Liability	Posting
2202	Loans from owner	Liability	Posting · Customer or supplier required
2203	Lease liabilities	Liability	Posting
2204	Provision for employee benefits	Liability	Posting
3	Owner's equity	Equity
31	Capital	Equity
3101	Owner's capital	Equity	Posting
3102	Owner's drawings	Equity	Posting · Contra
3103	Legal reserve	Equity	Posting
32	Retained earnings and closing accounts	Equity
3201	Retained earnings	Equity	Posting
3202	Profit or loss for the year	Equity	Posting
3203	Opening balance equity	Equity	Posting
3204	Income summary	Equity	Posting
4	Revenue	Revenue
41	Sales	Revenue
4101	Sales of goods	Revenue	Posting
4102	Service income	Revenue	Posting
4103	Sales returns and discounts	Revenue	Posting · Contra
42	Other income	Revenue
4201	Interest income	Revenue	Posting
4202	Foreign exchange gains and losses	Revenue	Posting
4203	Other income	Revenue	Posting
5	Cost of sales	Expense
51	Cost of sales	Expense
5101	Cost of goods sold	Expense	Posting
5102	Freight on purchases	Expense	Posting
5103	Subcontractors and direct costs	Expense	Posting
5104	Purchase discounts	Expense	Posting · Contra
6	Expenses	Expense
61	Operating expenses	Expense
6101	Salaries and wages	Expense	Posting
6102	Payroll taxes and social security	Expense	Posting
6103	Rent	Expense	Posting
6104	Utilities	Expense	Posting
6105	Insurance	Expense	Posting
6106	Accounting and legal fees	Expense	Posting
6107	Office supplies	Expense	Posting
6108	Telephone and internet	Expense	Posting
6109	Travel	Expense	Posting
6110	Vehicle expenses	Expense	Posting
6111	Repairs and maintenance	Expense	Posting
6112	Software and subscriptions	Expense	Posting
6113	Licences, permits and fees	Expense	Posting
6114	Bad debts	Expense	Posting
6115	Advertising and marketing	Expense	Posting
6116	Shipping and delivery	Expense	Posting
6117	Meals and entertainment	Expense	Posting
62	Depreciation and amortisation	Expense
6201	Depreciation expense	Expense	Posting
6202	Amortisation expense	Expense	Posting
63	Finance and other expenses	Expense
6301	Interest expense	Expense	Posting
6302	Bank charges	Expense	Posting
6303	Other expenses	Expense	Posting
64	Income tax	Expense
6401	Income tax expense	Expense	Posting

Download the template

Free, no signup. The Excel file keeps account codes as text so leading digits survive.

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How to start bookkeeping with the small business chart

1
Download
Open the Excel file and read through the 76 posting accounts.
2
Rename to fit
Rename accounts to match your business, such as 4101 to 'Sales: online shop'.
3
Add only what you report
Add an expense account only when you want to see that cost on its own line.
4
Install
In Ledgeriano you choose this template when you open your first fiscal year.
5
Record opening balances
Enter bank, stock and loan balances against 3203 Opening balance equity.

FAQ

Frequently asked questions

How many accounts does a small business need?

Usually 40 to 100. This template has 97, of which 76 accept postings, and most small businesses use about half of them.

Is it suitable for a sole trader or freelancer?

Yes. Leave inventory and fixed asset accounts unused if you do not have them, and use 3101 Owner's capital for money you put in.

Should I separate personal and business expenses?

Always. Run personal spending through a separate bank account; if a personal payment hits the business account, post it to equity as a withdrawal, not to an expense.

Can I add accounts later?

Yes. Add a code under the right group, such as 6118, without changing existing accounts. History stays comparable.

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Last reviewed: Friday, 6 November 2026

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