Every nonprofit organization has a unique COA that depends on your specific programs, revenue sources, and activities. The chart of accounts (or COA) is a numbered list that categorizes your financial activity into different accounts and subaccounts. When it comes to accounting, the first step is to create your chart of accounts.
You can’t group similar accounts together if all the numbers are already taken! Think about how your needs might change in the future, and leave gaps between your account numbers so you can add new accounts later.Below is a sample chart of accounts for nonprofit organizations. It’s easier to read and understand your financial reports when your accounts are listed in a logical order.Leave room for growth. If you need more detailed layers of organization, you can add class codes.Group similar accounts together. You don’t need separate accounts for paper, pens, envelopes, and staples you can just have one account for office supplies.
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