How is a chart of accounts usually numbered?

Beginner

Answer

By ranges per account type so codes sort logically — e.g. 1000s assets, 2000s liabilities, 3000s equity, 4000s income, 5000s+ expenses.

1xxx Assets, 2xxx Liabilities, 3xxx Equity, 4xxx Income, 5xxx Expenses

Real-world example Consistent numbering makes reports and account lookups predictable.