Kontosystem

Kontosystem, or account system, is a framework for recording and classifying an organization's financial transactions through a structured set of accounts (konton). It forms the backbone of bokföring and redovisning and supports the generation of financial statements by organizing data around accounts.

Key components include the kontoplan (chart of accounts), journals and the huvudbok (general ledger). In a double-entry system, every transaction affects at least two accounts, with a debit and a credit that keep the accounting equation in balance. Accounts are typically grouped by asset, liability, equity, revenue and expense, with the option of sub-accounts for more detail.

Implementation ranges from manual ledgers to sophisticated computerized accounting software and ERP systems. A kontosystem can be country-specific or industry-specific, and the kontoplan is often customized to match reporting needs and regulatory requirements.

Benefits of a well-designed kontosystem include consistency and comparability over time, an auditable trail for internal and external controls, and clearer financial reporting. It also supports budgeting, variance analysis, and decision-making by providing structured data for managers and auditors.

History: The underlying idea goes back to double-entry bookkeeping developed in medieval Italy, which evolved into modern accounting practices. In Swedish accounting practice, kontosystem and kontoplan are standard terms used to describe the structure of accounts and their coding.