Chart of Accounts
A chart of accounts is the organised list of accounts used to classify a company's financial activity. Its structure affects reporting, tax work, reconciliations and migration balances.
A worked example
A practical example to make the concept clear.
| Step | Illustrative record and result |
|---|---|
| Starting record | Example account mapping: 1100 Bank, 1200 Customer receivables, 4000 Sales revenue. |
| Change or calculation | A tax-free 100,000 IQD customer invoice uses receivables and sales, rather than the bank account. |
| Meaning and exception | A later bank payment uses Bank and receivables. These illustrative codes require finance approval; they are not an Iraqi statutory chart. |
Why it matters
Build your chart of accounts around your business, then map opening balances and reporting groups with your finance team.
Make it practical
Who approves the account mapping and how will opening balances reconcile? Test the answer with the exact release and application package under consideration. Explore Datrylo applications.