Bookkeeping

Chart of accounts

The structured list of ledger accounts a business posts to. Some countries prescribe a national chart, others leave it to the company.

What Chart of accounts means

The chart of accounts is the backbone of double-entry bookkeeping: a numbered list of accounts for assets, liabilities, equity, income and expenses. Every transaction is posted to at least two accounts, and financial statements are built by summing account balances according to the structure of the chart.

Approaches differ across the EU. France, Belgium, Spain, Portugal, Romania, Czechia and Slovakia prescribe a national chart that every business follows, which makes filings and audits uniform. Germany and Austria use standard charts published by professional bodies, such as DATEV SKR03 and SKR04, and the Nordic and Anglo-Irish countries leave the design largely to the company within reporting rules. Kontevia maps its categories to the chart used in each country so exports land on the right accounts.

How this applies in Malta

In Malta the reference chart is No national chart of accounts (UK-style; GAPSME or IFRS as adopted by the EU).

Related terms

Accrual basis accountingRecording income and expenses in the period they belong to, regardless of when the cash moves. The standard method for companies across the EU.Annual accounts (financial statements)The yearly balance sheet, profit and loss account and notes that companies must prepare, approve and file with a public register.Digital bookkeepingKeeping accounting records in software rather than on paper, increasingly required by law together with digital submission to the tax authority.SAF-T (Standard Audit File for Tax)An OECD-defined XML file of accounting data that tax authorities in several EU countries require for audits or as a periodic filing.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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