A chart of accounts (CoA) is the numbered list of all the accounts in your general ledger: cash, customers, stock, VAT, salaries, sales and so on. Every invoice, bill, payment and journal entry is posted to these accounts, and your financial statements are built from their balances.
The standard structure
| Range | Group | Statement | Normal balance |
|---|---|---|---|
| 1000–1999 | Assets | Balance sheet | Debit |
| 2000–2999 | Liabilities | Balance sheet | Credit |
| 3000–3999 | Equity | Balance sheet | Credit |
| 4000–4999 | Revenue | Income statement | Credit |
| 5000–5999 | Cost of sales | Income statement | Debit |
| 6000–6999 | Operating expenses | Income statement | Debit |
| 7000–7999 | Other income, finance costs and tax | Income statement | Mixed |
How to build yours in 6 steps
- Start from the reports you need. List the lines you want in your P&L and balance sheet, plus what your tax returns ask for.
- Use a numbering system with gaps (1110, 1120, 1130…) so you can add accounts later without renumbering.
- Separate tax accounts: input VAT, output VAT, withholding tax, zakat or income tax. Returns then reconcile in minutes.
- Keep it lean. 60–120 accounts is plenty for most SMEs. Track customers, vendors, branches, projects and departments with sub-ledgers and analytic accounts, not new GL accounts.
- Follow IFRS headings, so your accounts map straight to audited financial statements (for example, right-of-use assets and lease liabilities under IFRS 16).
- Document and lock it. Write down what goes where, and limit who can create new accounts.
In Odoo
Odoo installs a country chart of accounts with the Saudi, UAE or Egyptian localisation, already linked to the right taxes and tax reports. Start from it, rename or add accounts to match your needs, and keep each account's type correct, because Odoo builds the balance sheet and P&L from those types.
Download the free Excel template (English + Arabic)
Full example chart of accounts
A ready-to-adapt example for a trading or services SME in Saudi Arabia, the UAE or Egypt:
| Code | Account | Type | Odoo type |
|---|---|---|---|
| 1000 | ASSETS | Header | |
| 1100 | Cash and cash equivalents | Header | |
| 1110 | Cash on hand | Current asset | Bank and Cash |
| 1120 | Bank – current account | Current asset | Bank and Cash |
| 1130 | Payment gateway clearing (Tabby, Tamara, Stripe) | Current asset | Current Assets |
| 1200 | Accounts receivable – trade | Current asset | Receivable |
| 1210 | Allowance for expected credit losses | Current asset (contra) | Current Assets |
| 1300 | Inventory – goods for resale | Current asset | Current Assets |
| 1310 | Inventory – raw materials | Current asset | Current Assets |
| 1320 | Goods in transit | Current asset | Current Assets |
| 1400 | Prepaid expenses | Current asset | Prepayments |
| 1410 | Advances to suppliers | Current asset | Current Assets |
| 1420 | Input VAT recoverable | Current asset | Current Assets |
| 1430 | Withholding tax receivable (Egypt) | Current asset | Current Assets |
| 1500 | Property, plant and equipment | Header | |
| 1510 | Furniture and fixtures | Non-current asset | Fixed Assets |
| 1520 | Computers and IT equipment | Non-current asset | Fixed Assets |
| 1530 | Vehicles | Non-current asset | Fixed Assets |
| 1590 | Accumulated depreciation | Non-current asset (contra) | Fixed Assets |
| 1600 | Intangible assets (software, licences) | Non-current asset | Non-current Assets |
| 1700 | Right-of-use assets (IFRS 16) | Non-current asset | Non-current Assets |
| 2000 | LIABILITIES | Header | |
| 2100 | Accounts payable – trade | Current liability | Payable |
| 2110 | Accrued expenses | Current liability | Current Liabilities |
| 2120 | Customer advances and deposits | Current liability | Current Liabilities |
| 2200 | Output VAT payable | Current liability | Current Liabilities |
| 2210 | VAT settlement (net payable) | Current liability | Current Liabilities |
| 2220 | Withholding tax payable | Current liability | Current Liabilities |
| 2230 | Zakat / corporate tax payable | Current liability | Current Liabilities |
| 2300 | Salaries payable | Current liability | Current Liabilities |
| 2310 | Social insurance / GOSI payable | Current liability | Current Liabilities |
| 2320 | Payroll tax payable (Egypt) | Current liability | Current Liabilities |
| 2400 | Short-term loans and overdraft | Current liability | Current Liabilities |
| 2500 | Lease liabilities (IFRS 16) | Non-current liability | Non-current Liabilities |
| 2600 | Long-term loans | Non-current liability | Non-current Liabilities |
| 2700 | End-of-service benefits provision | Non-current liability | Non-current Liabilities |
| 3000 | EQUITY | Header | |
| 3100 | Share capital | Equity | Equity |
| 3200 | Statutory reserve | Equity | Equity |
| 3300 | Retained earnings | Equity | Equity |
| 3400 | Owner / partner current accounts | Equity | Equity |
| 3900 | Current year earnings | Equity | Current Year Earnings |
| 4000 | REVENUE | Header | |
| 4100 | Sales – products | Revenue | Income |
| 4200 | Revenue – services | Revenue | Income |
| 4300 | Export sales (zero-rated) | Revenue | Income |
| 4900 | Sales returns and discounts | Revenue (contra) | Income |
| 5000 | COST OF SALES | Header | |
| 5100 | Cost of goods sold | Cost of revenue | Cost of Revenue |
| 5200 | Freight-in and customs (landed costs) | Cost of revenue | Cost of Revenue |
| 5300 | Inventory adjustments and write-offs | Cost of revenue | Cost of Revenue |
| 6000 | OPERATING EXPENSES | Header | |
| 6100 | Salaries and wages | Expense | Expenses |
| 6110 | Social insurance / GOSI – employer | Expense | Expenses |
| 6120 | End-of-service benefits expense | Expense | Expenses |
| 6130 | Medical insurance and staff benefits | Expense | Expenses |
| 6200 | Rent (short-term) and service charges | Expense | Expenses |
| 6210 | Utilities and internet | Expense | Expenses |
| 6300 | Marketing and advertising | Expense | Expenses |
| 6400 | Professional fees (audit, legal, consulting) | Expense | Expenses |
| 6500 | Software subscriptions | Expense | Expenses |
| 6600 | Government fees, licences and visas | Expense | Expenses |
| 6700 | Travel and transport | Expense | Expenses |
| 6800 | Depreciation and amortisation | Expense | Depreciation |
| 6900 | Bank charges and gateway fees | Expense | Expenses |
| 7000 | OTHER INCOME AND EXPENSES | Header | |
| 7100 | Other income | Other income | Other Income |
| 7200 | Foreign exchange gains / losses | Other | Other Income |
| 7300 | Finance costs (interest, lease interest) | Expense | Expenses |
| 7900 | Zakat / income tax expense | Expense | Expenses |
Need a chart of accounts designed for your business, or migrated into Odoo? See our accounting services. Terms you don't know? Check the glossary.
Need professional assistance?
KasemCPA can review your numbers, build the model properly or set it up in Odoo.