Chart of Accounts (COA)
Definition
An organized list of every account used to record financial transactions in your general ledger. Categories include assets, liabilities, equity, revenue, and expenses. HelloBooks creates a standard COA automatically when you set up your entity.
Related Terms in Core Accounting
Cost of Goods Sold (COGS)
The direct costs of producing goods or services sold by your business — materials, labor, and overhead. Deducted from revenue to calculate gross profit. HelloBooks tracks COGS through inventory and purchase management.
Credit Note
A document issued by a seller to reduce the amount a buyer owes. Used for returns, overpayments, or post-sale discounts. In GST systems, credit notes adjust tax liability and must be reported in GSTR-1.
Debit Note
A document issued when the amount on the original invoice needs to increase — for additional charges, price revisions, or supplementary services. Opposite of a credit note.
Depreciation
The gradual reduction in value of a fixed asset over its useful life. Common methods include straight-line and declining balance. In the US, Section 179 allows immediate expensing of qualifying assets.
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