What is an account class

Financial transactions such as costs and revenues are organised into different accounts. These accounts falls within a broader categorisation known as «account classes», which are further divided into account groups for financial management.

Accounting frameworks are usually built up by eight account classes. It can be grouped into assets, liabilities, income and expenses.

Accounts within the accounting system are built up by four-digit codes. The initial digit reveals the class to which the account belongs. The subsequent digits act as subcategories that delineate the account group and specific account code. You can classify the type of transaction being recorded.

Proper allocation to the corresponding account class and group is essential for maintaining orderly financial records and ensuring compliance with ccounting standards.