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Three Digit Chart of Accounts
A three digit chart of accounts allows you to create a numerical sequence of accounts that contains up to 1,000 potential accounts. It is useful for small businesses that have no pre-defined departments or divisions that must be broken out separately. A sample chart of accounts using this format is shown below:
| Account Number | Description |
| 010 | Cash |
| 020 | Petty cash |
| 030 | Accounts receivable |
| 040 | Reserve for bad debts |
| 050 | Marketable securities |
| 060 | Raw materials inventory |
| 070 | Work-in-process inventory |
| 080 | Finished goods inventory |
| 090 | Reserve for obsolete inventory |
| 100 | Fixed assets – Computer equipment |
| 110 | Fixed assets – Computer software |
| 120 | Fixed assets – Furniture and fixtures |
| 130 | Fixed assets – Leasehold improvements |
| 140 | Fixed assets – Machinery |
| 150 | Accumulated depreciation – computer equipment |
| 160 | Accumulated depreciation – Computer software |
| 170 | Accumulated depreciation – Furniture and fixtures |
| 180 | Accumulated depreciation – Leasehold improvements |
| 190 | Accumulated depreciation – Machinery |
| 200 | Other assets |
| 300 | Accounts payable |
| 310 | Accrued payroll liability |
| 320 | Accrued vacation liability |
| 330 | Accrued expenses liability – other |
| 340 | Unremitted sales taxes |
| 350 | Unremitted pension payments |
| 360 | Short-term notes payable |
| 370 | Other short-term liabilities |
| 400 | Long-term notes payable |
| 500 | Capital stock |
| 510 | Retained earnings |
| 600 | Revenue |
| 700 | Cost of goods sold – materials |
| 710 | Cost of goods sold – direct labor |
| 720 | Cost of goods sold – manufacturing supplies |
| 730 | Cost of goods sold – applied overhead |
| 800 | Bank charges |
| 805 | Benefits |
| 810 | Depreciation |
| 815 | Insurance |
| 825 | Office supplies |
| 830 | Salaries and wages |
| 835 | Telephones |
| 840 | Training |
| 845 | Travel and entertainment |
| 850 | Utilities |
| 855 | Other expenses |
| 860 | Interest expense |
| 900 | Extraordinary items |
Notice how each clearly definable block of accounts begins with a different set of account numbers. For example, current liabilities begin with “300,” revenues begin with “600,” and cost of goods sold items begin with “700.” This not only makes it easier to navigate through the chart of accounts, but is also mandated by many computerized accounting software packages.
Related Topics
5-digit chart of accounts
7-digit chart of accounts
Alphanumeric account codes
Chart of accounts overview
Reduce the chart of accounts
Standardize the chart of accounts