What is the best way to make chart of account which will be applicable in your company , also does it differ from operation to another company ?

Being an Executive Accountant in one of the subsidiaries of a conglomerate and handing a number of clients being an auditor now, i place my thought below:

Yes it might change depending on the nature of the organization. However most often company follow the same strucutre.

It provides codes for the separate cost centre, profit centre.

Then Natural account  i.e. Expense type e.g. Prepaid Expense 

The sub account i.e. further description e.g. Insurance

YOu can add further in addition to this also.

Hope this helps.

Regards, Ashraff

It depends according to the company ploicy apply it and BIG YES it MUST differ from company to other according to the company status and its operations as well.