Categories

The chart of accounts defines the financial structure of a company by providing a list of all accounts used in the company's general ledger. Codat has developed a tool that lets you and your customers categorize transactions into one of the account types, such as Assets, Liabilities, Income, Expenses.

We have defined 162 account categories that businesses can use. Codat automatically suggests a category for each account which then needs to be confirmed by you or your customer. Category mappings can be confirmed or updated via API or Codat’s no-code offerings included in the client portal.

Benefits of categorizing your accounts

  1. Easy to identify comparable accounts across a company’s portfolio of businesses.
  2. Codat uses the categorized data to produce additional insights, e.g. financial ratios and statements
  3. Saves time by automating decisioning including some of the first-level qualification criteria.
  4. Allows you to use categories to populate your own internal credit templates or spreading tools.
  5. Allows you to view the chart of accounts in our standard categorized model OR in the original format of the small business.
  6. Improves monitoring as you can use this to create alerts for deteriorating trends.

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