Chart of Accounts
— Template and Structure for LLC
A chart of accounts (plan kont) is the backbone of full accounting. It lists every account your company uses, numbered systematically. If you're setting up accounting for your limited liability company (Sp. z o.o.), you need a proper chart of accounts. In this guide, I explain the structure, show you examples, and help you understand how to set one up and maintain it.
What Is a Chart of Accounts?
A chart of accounts is a complete list of accounts used in your company's accounting system. Each account has:
- A unique number (e.g., 100, 200, 510)
- A name or description
- A classification (asset, liability, income, expense)
- Rules for debit/credit usage
Every transaction is recorded through these accounts, so the chart must be complete and properly organized.
Standard Account Structure
Polish accounting follows a system where account numbers indicate their type:
- 0–2: Assets (cash, receivables, property)
- 3–5: Liabilities and equity (debt, capital, retained earnings)
- 4: Revenue (sales, service income)
- 5: Costs and expenses (materials, labor, utilities)
- 8: Results (profit/loss, tax)
Sample Chart of Accounts for LLC
Assets (0–2):
- 100 — Cash
- 120 — Bank accounts
- 140 — Short-term receivables
- 200 — Fixed assets (property, equipment)
- 210 — Accumulated depreciation
Liabilities & Equity (3–5):
- 300 — Share capital
- 310 — Retained earnings
- 400 — Accounts payable
- 410 — Short-term loans
- 500 — Long-term debt
Revenue (4):
- 700 — Sales of products
- 710 — Service revenue
- 720 — Rental income
- 750 — Other revenue
Costs & Expenses (5):
- 500 — Material and supplies
- 510 — Labor and wages
- 520 — Depreciation expense
- 530 — Utilities and rent
- 540 — Marketing and advertising
- 550 — Professional services
Legal Requirements for Chart of Accounts
Is a chart of accounts mandatory?
Yes. All companies maintaining full accounting must have a documented chart of accounts.
Must it be approved?
Yes. The chart must be part of the company's accounting policies, approved by the board of directors or management.
Can I modify it during the year?
Yes, but changes should be documented and the reasons explained. Major changes are best made at year-start.
How to Set Up Your Chart
- Choose a template: Start with a standard template from your industry
- Customize for your needs: Add specific accounts for your business operations
- Assign numbers logically: Follow the 0–8 structure
- Document the chart: Create a formal chart document with all accounts
- Approve: Get management or board approval
- Enter into software: Set up in your accounting system
- Train staff: Ensure everyone understands account usage
Common Chart of Accounts Mistakes
1. Too few accounts:
Overly broad accounts (e.g., "All Expenses") make analysis impossible.
2. Too many accounts:
Excessive detail (separate account for each minor expense) creates confusion.
3. Illogical numbering:
Accounts should follow the system; haphazard numbering causes errors.
4. Not documenting it:
Unwritten charts lead to inconsistent usage. Always document formally.
Frequently Asked Questions
Can I use the same chart as my previous year?
Yes, unless the business structure or operations changed. Review and adjust if needed.
What if I need a new account mid-year?
You can add one. Document the change and note which transactions use it.
Is there a penalty for wrong accounts?
Not directly, but reclassifications during audits can cost time and money. Use correct accounts from the start.
Tomasz helps companies set up proper accounting systems including chart of accounts design and implementation.