---
title: "Small business chart of accounts template (97 accounts)"
description: "Free simplified chart of accounts for small businesses: 97 accounts in 6 classes, cash and bank to income tax, with VAT or sales tax. Get CSV or Excel."
canonical: https://ledgeriano.com/templates/small-business-chart-of-accounts
language: en
publisher: "Ledgeriano"
updated: 2026-11-06
---

# Small business chart of accounts template (97 accounts)

> Free simplified chart of accounts for small businesses: 97 accounts in 6 classes, cash and bank to income tax, with VAT or sales tax. Get CSV or Excel.

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.

Download: [Excel (.xlsx)](https://ledgeriano.com/templates/files/small-business-chart-of-accounts.xlsx), [CSV (UTF-8)](https://ledgeriano.com/templates/files/small-business-chart-of-accounts.csv)

Accounts: 97. Posting accounts: 76. Levels: 3.

## 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.

| 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](https://ledgeriano.com/guides/year-end-closing) shows how profit moves to retained earnings.

## When to move to a fuller chart

Switch to the [IFRS template](https://ledgeriano.com/templates/ifrs-chart-of-accounts) or [US GAAP template](https://ledgeriano.com/templates/us-gaap-chart-of-accounts) 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.

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

## 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](https://ledgeriano.com/features) 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.

## 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.