Switchboard Finance Logo – Chart of Accounts Glossary

Chart of Accounts

A Chart of Accounts (COA) is the complete, structured list of all financial accounts a business uses to record transactions. It forms the backbone of accounting and is reviewed by lenders during business finance assessments, including Business Loans, Working Capital Loans, and Business Lines of Credit. Related terms: Revenue, OPEX, CAPEX. Useful hub: Business Owners Finance Hub.

Why Chart of Accounts Matters

A well-organised Chart of Accounts gives lenders clear visibility into business performance, spending behaviour, and financial structure.

  • Shows how income and expenses are categorised
  • Improves financial transparency for loan assessments
  • Helps identify profitability and cost control
  • Used for BAS, tax, and financial reporting
  • Essential for cashflow analysis and borrowing capacity reviews

How a Chart of Accounts Is Structured

  • Assets — equipment, cash, vehicles, inventory
  • Liabilities — loans, credit lines, ATO debts
  • Equity — retained earnings and owner contributions
  • Income — sales, service fees, operating revenue
  • Expenses — OPEX, CAPEX, wages, rent, utilities

Lenders refer to the Chart of Accounts when analysing financial statements for products like Invoice Finance and Working Capital Loans.

Official reference: business.gov.au

What is included in a Chart of Accounts?
Assets, liabilities, equity, income, and all business expense categories.
Do lenders look at the Chart of Accounts?
Yes — it helps lenders understand business structure and financial accuracy.
Does every business need a Chart of Accounts?
Yes — it is essential for bookkeeping, tax reporting, and business finance management.
Is a Chart of Accounts the same for all industries?
No — tradies, cafés, medical clinics, and truck operators each use different account structures.
Can the Chart of Accounts affect loan approvals?
Yes — poorly maintained financials reduce clarity and may weaken approval strength.