Discover more options to manage your business reading What is accounting?
A COA is an index of all the company's accounts. You can use it to record your business transactions and associate them with a specific account.
An account is a chart to gather the same business operations in a chronological sequence.
What can you do in the account chart?
Learn more about the COA
You will have a chart of accounts according to the business' activity (self-employed, limited liability company, etc.) that you specified during your Holded subscription.
The accounts included in the COA can be classified in several ways, but a frequent distinction can be made based on their impact on the company's assets, liabilities or equity.
There are the goods and rights owned by your company. They can be tangible, like machinery or real estate, or intangible, like trademarks and patents. Also, you can classify them by their ability to be converted into money.
Learn how to manage your assets here.
These are your company's obligations and duties. The repayable liabilities in the short term are current liabilities, while the ones repayable in the long period are non-current liabilities. An example of this is a bank loan to be repaid with interest over a certain period.
Learn how to manage your liabilities here.
It represents the difference between assets and liabilities. In other words, the amount remaining between what you have and what you owe. Usually, the net equity is composed of partners' contributions (capital, resources, among others) and the company's profits.
Learn to monitor your net equity on your balance sheets here.