Business accounting requires many accounts and subjects.

Each account can only record a certain aspect of the enterprise's economic activities, and it is impossible to record all the enterprise's economic operations.

The economic activities of an enterprise as a whole need to be reflected by an interconnected account system.

Account classification is to study the consistency between various accounts in this account system, seek its rules, and ascertain the status and role of each account in the account system, so as to deepen the understanding of accounts and make better use of account pairings.

reflect the economic business of the enterprise.

Modern management theory believes that classification is a basic management.

Scientific classification of accounts helps in scientific management.

Classifying accounts according to different standards allows us to understand accounts from different perspectives and divide all accounts into various categories.

Its classification standards generally include classification according to accounting elements, classification according to purpose and structure, classification according to the detailed level of indicators provided, etc.

1. Classification by accounting elements The balance equation of accounting is: Assets = Liabilities + Owners’ Equity. This balance equation shows the basic balance relationship of accounting. It is the basis of accounting and restricts and determines the entire accounting work.

Each element in the balancing equation is called an accounting element.

The classification of accounts by accounting elements is based on the relationship between the economic content accounted for in the accounts and each accounting element.

To carry out production and business activities, an enterprise must first have certain sites and equipment, and it also needs certain working capital. These economic resources that are owned or controlled by the enterprise and can be measured in currency are assets.

In order to reflect the increase, decrease, changes and balance of assets, a type of account needs to be set up to reflect the increase, decrease, and changes in assets through the amount of the account; to reflect the balance of assets through the balance of the account.

Corporate assets mainly come from investments from creditors and owners.

The debt provided by the creditor must be repaid with the future assets or services of the enterprise as a liability.

In order to reflect the creditor's provision of funds and its repayment, a type of account needs to be set up to reflect the formation and repayment of liabilities through the amount of the account; to reflect the unpaid debt situation through the balance of the account.

Owner's equity is the balance of a company's total assets minus its liabilities.

When an enterprise is founded, it is the capital invested by investors into the enterprise; after the enterprise makes profits from its production and operation activities, the owner's equity is the sum of the invested capital and undistributed profits.

In order to reflect the increase or decrease in invested capital and undistributed profits and their results, a type of account is set up to reflect the increase or decrease in invested capital and undistributed profits through the amount of the account; to reflect the changes in invested capital through the amount of the account.

The actual amount of results and undistributed profits.

After acquiring various assets from different sources, enterprises invest in production and business activities.

To carry out production and business activities, various incomes must be obtained from business operations such as selling goods or providing labor services.

At the same time, if an enterprise wants to carry out production and business activities, it will inevitably incur some costs.

Profit is formed when the various incomes obtained by the enterprise compensate for the various expenditures consumed in production and operation activities.

In order to reflect the acquisition of revenue, the occurrence of expenses and the formation of profits, two types of accounts need to be set up. The amount of one type of account reflects the income of the enterprise; the amount of the type of account reflects the cost and expenses in the production and operation process.

Through the carryover of the balances of the two types of accounts, the profit formation of the enterprise is settled.

Therefore, accounts are classified according to accounting elements and are generally divided into five categories: assets, liabilities, owners' equity, income and costs and expenses.

Accounts reflecting assets are divided into accounts reflecting current assets, long-term assets, etc. according to the liquidity of assets and the needs of business management accounting.

Accounts reflecting current assets can be divided into accounts reflecting monetary funds, such as "cash", "bank deposits" and other accounts, according to the liquidity of each asset and the role it plays in the production and operation process; accounts reflecting settlement claims

Accounts, such as "Accounts Receivable" and "Other Receivables"; accounts reflecting inventory, such as "Materials", "Finished Goods" and other accounts; Accounts reflecting long-term assets, such as "Fixed Assets", "Accumulated Depreciation"

” and other accounts.

Accounts reflecting liabilities are divided according to the reasons for the formation of liabilities, and are further divided into liability accounts reflecting the formation of production and operation activities and liability accounts reflecting the formation of operating results.

Reflect liability accounts formed due to production and operation activities, such as "accounts payable", "accounts received in advance", "short-term borrowings" and other accounts; reflect liability accounts formed due to operating results, such as "taxes payable" and "profit payable"

Wait for the account.

Accounts that reflect owners' equity are divided according to the source of equity into accounts that reflect invested capital, accounts that reflect funds withdrawn from profits, and accounts that reflect undistributed profits.

Accounts that reflect invested capital, such as "paid-in capital" accounts; accounts that reflect funds withdrawn from profits, such as "provident fund" accounts; accounts that reflect undistributed profits, such as "profit distribution" and "profit for the year" accounts.

Accounts reflecting income are divided into operating income accounts and non-operating income accounts according to whether the income is related to the production and operation activities of the enterprise.

Accounts that reflect operating income, such as the "operating income" account; accounts that reflect non-operating income, such as the "non-operating income" account.

Accounts reflecting costs and expenses are divided into operating cost and expense accounts and non-operating cost and expense accounts according to whether the costs and expenses are related to the production and operation activities of the enterprise.