Recruiter's Glossary

Examples: Financial Close • Income Statement • Amortization

Chart of Accounts

Term from Accounting industry explained for recruiters

A Chart of Accounts is like a master list or catalog that organizes all financial transactions in a business. Think of it as a filing system where each type of money movement (like income, expenses, assets, and debts) gets its own labeled folder. Accountants and bookkeepers use this system to make sure all financial information is organized consistently, which makes it easier to create financial reports and track how a business is doing. This organization method is fundamental to accounting systems like QuickBooks, Sage, or any other bookkeeping software. When people mention "COA" or "account structure" in their resumes, they're usually talking about this same concept.

Examples in Resumes

Developed and implemented new Chart of Accounts structure for multi-department organization

Streamlined financial reporting by restructuring company's Chart of Accounts and COA

Managed merger of two companies by consolidating their Charts of Accounts

Typical job title: "Accountants"

Also try searching for:

Accountant Staff Accountant Senior Accountant Financial Analyst Accounting Manager Controller Bookkeeper General Ledger Accountant

Where to Find Accountants

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you approach restructuring a Chart of Accounts for a company that's expanding internationally?

Expected Answer: A senior accountant should discuss considering different country reporting requirements, currency handling, consolidation needs, and ensuring the structure can scale while maintaining clear reporting lines.

Q: How do you ensure a Chart of Accounts supports both management and financial reporting needs?

Expected Answer: They should explain how to design account segments that track both statutory requirements and internal reporting needs, including department codes, project codes, and cost centers.

Mid Level Questions

Q: What key elements do you consider when setting up a new Chart of Accounts?

Expected Answer: Should mention account numbering system, logical groupings of accounts, consideration of financial statement presentation, and future growth needs.

Q: How do you maintain Chart of Accounts accuracy and cleanliness?

Expected Answer: Should discuss regular review processes, inactivating unused accounts, documentation of changes, and training staff on proper account usage.

Junior Level Questions

Q: Can you explain the basic structure of a Chart of Accounts?

Expected Answer: Should be able to explain the main categories: assets, liabilities, equity, income, and expenses, and basic account numbering systems.

Q: How do you decide which account to use when coding a transaction?

Expected Answer: Should explain looking at the nature of the transaction, checking account descriptions, and following company guidelines for account usage.