Chart of Accounts¶
Last reviewed: 2026-03-31 · Nnamdi
Status: Complete
Route: /accounts
1. What is it?¶
The Chart of Accounts (COA) is the complete list of all financial accounts used by the business. Every transaction in Finora posts to one or more COA accounts — expenses debit an expense account, revenue credits a revenue account, cash payments credit a cash account, and so on. The COA is the backbone of the General Ledger and determines how every naira is classified and reported on the P&L and Balance Sheet. Businesses get a pre-built COA when they create their account; they can add custom accounts on top.
2. How does it work in Finora?¶
2.1 The Chart of Accounts page (/accounts)¶
Header: - Total account count and business name (e.g., "119 accounts • COA Test School Academy") - Add Account button
Search and filter: - Search bar: by account name or code - Type filter: All Types / Assets / Liabilities / Equity / Revenue / Expenses
Account groups: The COA is organised into 5 collapsible groups. Each group shows account count and total balance:
| Group | Accounts | Description |
|---|---|---|
| Assets | 21 | What the business owns — cash, receivables, inventory, fixed assets |
| Liabilities | 24 | What the business owes — payables, loans, tax obligations |
| Equity | 6 | Owners' stake — share capital, retained earnings, capital contributions |
| Revenue | 21 | Income earned — school fees, service fees, other income |
| Expenses | 46 | Costs incurred — salaries, utilities, supplies, depreciation |
Test business total: 119 accounts (COA Test School Academy, school-specific COA)
Account table columns (within each group): - Code — numeric code (e.g., 1010, 6200) - Account Name — descriptive name - Category — sub-type within the group (e.g., current asset, fixed asset, operating expense) - Balance — current balance on this account - Actions — View Details / Edit Account / Delete Account
System accounts display "System accounts cannot be modified or deleted" instead of Edit/Delete buttons. User-created accounts show Edit and Delete.
2.2 Account numbering convention¶
Finora uses a standard numeric coding scheme:
| Range | Group | Examples |
|---|---|---|
| 1000–1999 | Assets | 1010 Cash on Hand, 1020 Cash at Bank, 1040 Input VAT Recoverable, 1100–1200 Fixed Assets |
| 2000–2999 | Liabilities | 2020 VAT Payable, 2021 Output VAT Payable, 2022 WHT Receivable, 2026 VAT Payable, 2027 WHT Payable, 2030 Loans Payable |
| 3000–3999 | Equity | 3000 Share Capital, 3020 Retained Earnings, 3025 Owner's Capital Contribution |
| 4000–4999 | Revenue | 4010 School Fees - 1st Term, 4020 School Fees - 2nd Term, 4030 School Fees - 3rd Term |
| 5000–5999 | Cost of Sales / COGS | Cost of Goods Sold and direct costs |
| 6000–6999 | Expenses | 6010 Salaries, 6080 Depreciation, 6200 Office Supplies, 6500 Loss on Disposal |
2.3 School-specific accounts (test business)¶
The test account (COA Test School Academy) has a school-specific COA. Key accounts:
Current Assets (1000–1050): - 1000 Assets (parent) - 1010 Cash on Hand - 1015 Petty Cash Advance - 1020 Cash at Bank - Operating Account - 1021 Trade Debtors - School Fees Receivable - 1022 Staff Receivables - 1030–1032 Inventory (School Supplies / Uniforms / Textbooks) - 1040 Input VAT Recoverable - 1041 Prepaid Expenses - 1050 WHT Receivable
Fixed Assets (1100–1200): - 1100 School Buildings - 1110 Furniture & Equipment - Classrooms - 1111 Furniture & Equipment - Laboratory - 1112 Computers & Technology - 1113 Library Books & Resources - 1114 Sports Equipment - 1120 Vehicles - School Buses - 1130 Generators & Power Equipment - 1200 Accumulated Depreciation (contra-asset)
2.4 Account detail panel¶
Clicking View Details on any account opens a right-hand panel showing: - Code — account number - Name — account name - Type — Assets / Liabilities / Equity / Revenue / Expenses - Category — sub-type (current asset / fixed asset / operating expense / etc.) - Balance — current balance - Description — account description - System Account — Yes/No
System accounts display a "⚠️ Read-Only Account" warning: "System accounts cannot be modified or deleted."
2.5 Adding a custom account¶
Click Add Account. A panel slides in on the right:
| Field | Required | Notes |
|---|---|---|
| Account Type | Yes | Asset / Liability / Equity / Revenue / Expense |
| Category | Yes | Depends on type. For Expense: Cost of Sales / Operating Expense / Other Expense |
| Account Code | Yes | Auto-suggested based on existing codes; user can change |
| Account Name | Yes | e.g., "Staff Transportation Allowance" |
| Description | No | Optional internal note |
| Tax Type | No | None (default) / VAT / WHT |
Action buttons: - Cancel — closes the panel - Create Account — adds the account to the COA (enabled only when required fields are filled)
The account code is auto-suggested as the next available code in the range for that type (e.g., 6522 for a new expense account after existing 6xxx accounts).
2.6 Editing and deleting accounts¶
- System accounts — cannot be edited or deleted. These are core accounts required by Finora's accounting engine (cash, bank, receivables, payables, VAT/WHT accounts, etc.)
- User-created accounts — can be edited (name, description, tax type) and deleted if they have no transactions posted against them
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Every transaction must post to a COA account | Finora's GL requires valid debit and credit accounts for every journal entry |
| System accounts are protected | Core accounts (cash, bank, VAT payable, WHT payable, etc.) cannot be modified — they are used by system processes |
| Accounts with transactions cannot be deleted | If a user-created account has journal entries against it, it cannot be deleted |
| Account codes must be unique | Two accounts cannot share the same code |
| Category determines financial statement placement | Current assets appear in Working Capital; fixed assets in Non-Current Assets; the category drives the Balance Sheet structure |
| Tax Type on expense accounts | Setting Tax Type = VAT on an expense account tells the system this account expects VAT to be tracked; WHT similarly |
| COA is business-specific | The school COA is tailored for schools; a trading business has different accounts (inventory, COGS, etc.) |
4. Nigerian regulatory context¶
FIRS and the chart of accounts - FIRS does not mandate a specific COA structure, but expects businesses to maintain proper books that support their tax filings - The COA account balances feed directly into the Balance Sheet and P&L used for CIT and VAT return filing - Accounts like 2021 Output VAT Payable and 1040 Input VAT Recoverable are system accounts that drive the VAT Return calculation — do not rename or delete them
CAMA compliance - Under CAMA, companies must keep proper books of account — the COA and its journal entries constitute those books - The COA must be able to produce a Trial Balance, P&L, and Balance Sheet at any time — Finora's Reports section reads directly from COA balances
School-specific regulatory accounts - Schools may need accounts for deferred income (fees paid for future terms), uniform sales, feeding levies, and exam fees — the test school COA shows these structured under the 4xxx Revenue range - Capital grants or government subventions (for government-aided schools) may need separate equity or liability accounts
5. Common customer questions¶
Q: "Why can't I edit or delete this account?"
Some accounts are system accounts — they are used by Finora's internal processes (tracking cash, VAT, WHT, etc.) and cannot be modified. Look for the ⚠️ "Read-Only Account" notice in View Details. If you need a new account for a similar purpose, create a custom account instead.
Q: "How do I add an account for a new expense type?"
Click Add Account, select Type: Expense, choose the appropriate Category (usually Operating Expense), enter a code in the 6xxx range, and give it a name. The code will be auto-suggested.
Q: "My expense categories don't match my business. Can I change them?"
You can add new accounts for your specific needs. For system accounts, you cannot change the name — but you can create a parallel custom account. If the standard accounts really don't fit, escalate to Tier 2 for guidance on COA restructuring.
Q: "What does the balance on a COA account represent?"
The balance is the running total of all debits minus credits posted to that account since the business started (or since the opening balance was entered). For expense accounts, a positive balance means money has been spent. For liability accounts, a negative balance means money is owed.
Q: "Why does my Cash at Bank show a negative balance?"
In the COA, asset accounts (like cash and bank) show negative balances when they hold funds — this is the "credit side" of the accounting equation. A negative -₦400,000 on "Cash at Bank" means there is ₦400,000 in the bank. This is normal in double-entry bookkeeping; the Balance Sheet will show it as a positive asset value.
6. Known edge cases¶
Negative asset balances (display)¶
Asset and revenue accounts may display with negative signs in the COA list because of how debits/credits work in double-entry accounting. This is expected — the Financial Reports (Balance Sheet, P&L) translate these into positive figures in the correct sections.
Duplicate account names¶
Two accounts can theoretically have the same name (e.g., two "Miscellaneous Expense" accounts) as long as their codes differ. This creates confusion in reporting. When adding accounts, use descriptive, unique names.
Account code gaps¶
If a user-created account is deleted, its code becomes available again. The auto-suggest won't reuse a deleted code — it suggests the next sequential number. Manually reusing a deleted code is possible but not recommended.
COA customised per business type¶
A school's COA looks very different from a trading company's. If a business changes type (e.g., a school adds a trading arm), they may need to add inventory, COGS, and supplier accounts that weren't in the original setup. Escalate to Tier 2 for significant COA restructuring.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - A system account balance is clearly wrong and doesn't reconcile with the Financial Reports - A user needs to merge or rename system accounts (not possible via UI — requires backend intervention) - COA balances do not match the Trial Balance in Financial Reports
Escalate to Tier 2 (Support Lead) if: - Business wants to restructure their COA significantly (new business type, new revenue streams) - Business is unsure which account type/code to use for a specific transaction - Business needs opening balances entered for accounts (migrating from another system)
8. Last reviewed¶
2026-03-31 — Nnamdi. Verified against production. COA list confirmed: 119 accounts in COA Test School Academy, 5 groups (Assets 21 / Liabilities 24 / Equity 6 / Revenue 21 / Expenses 46). Assets section fully documented: current assets 1000–1050, fixed assets 1100–1200. Account Detail panel confirmed: Code, Name, Type, Category, Balance, Description, System Account flag. System accounts show Read-Only warning with disabled Edit/Delete buttons. User-created accounts show Edit + Delete. Add New Account form captured: Type, Category, Code (auto-suggest), Name, Description, Tax Type (None/VAT/WHT).