Classes of the Accounting Plan, Necessary for the Bookkeeping?
The Chart of Accounts is a document governing accounting . First of all, the chart of accounts is much more than the chart of accounts – the famous laminated paper document which groups together the 7 classes of the asset, liability and result accounts. In fact, the chart of accounts also corresponds to the accounting rules. To define it, a chart of accounts is used by an economic actor within its accounting system in order to record the economic and financial events according to a standardized classification in the respect of the accounting principles. It is therefore an accounting classification standard. Let’s explore together the chart of accounts, its classes and its use through this article.
Is the chart of accounts current today?
The chart of accounts is a great asset for companies, balance sheet readers and partners. Indeed, the chart of accounts is a homogeneous element making it possible to have the same standards. People can communicate, talk to each other and use the same language. Nevertheless this kind of universal language requires learning. This training is not necessarily always well taught but to look more closely, it is very easily accessible.
The chart of accounts is divided into 7 categories
First of all, keeping the accounts is based on a double-part system . In other words, when we record an operation, we must systematically go through the operation in 2 steps: once at the debit and once at the credit. For example, if I spend money on refueling 100 euros, I will register the following transaction:
- at the debit, I will record the expense in the fuel account (class 6 account which includes charges)
- to the credit, I will record the outflow of money from my bank (class 5 account that groups the financial accounts)
Accounting is the act of recording all the flows of the business . Thus, we use a chart of accounts or in other words account numbers for registration. To make life easier, the chart of accounts is based on techniques in a memo-technical way. An example, a 6 in 2 nd position will mean financial in a charge or a product. Thus, account 66 signifies financial charges and 76 financial products. Here are various classes that are part of the General Accounting Plan.
- Capital: Class 1,
- Fixed assets: Class 2,
- Stock: Class 3,
- Thirds: Class 4,
- Financial: Class 5,
- Loads: Class 6,
- Products: Class 7.
The chart of accounts is no longer needed at Dougs
Dougs is an accounting application based on the recognition of the transaction. So, we built the Dougs app around the following idea:
- Each operation can be identified using our algorithms in terms of expense or product,
- All revenues and expenses are grouped into categories (what we count as account numbers),
- Thus, the robot will classify all operations into categories that the user will just have to validate (or change),
- No more problems of accounting knowledge ,
- The robot will record the accounting entries using real account plan numbers.