tililuettelo

Tililuettelo, or the chart of accounts, is the structured listing of all accounts used in a company's bookkeeping. It provides a standardized framework for recording financial transactions by assigning each account a unique code and a descriptive name. The tililuettelo typically reflects the accounting equation and is organized into major groups such as assets, liabilities, equity, revenue, and expenses. Within each group, accounts may be further subdivided into sub-accounts to capture more granular information (for example, cash, bank, and accounts receivable under assets; loans payable under liabilities; sales revenue under revenue; salaries and rent under expenses).

Purpose and use

It enables consistent posting to the general ledger, facilitates the generation of the balance sheet and income statement, and supports financial analysis and internal controls. It also simplifies reporting to tax authorities and auditors. The tililuettelo is usually tailored to the company’s operations and may be aligned with Finnish accounting practices and standards, as well as the needs of the accounting software in use.

Structure and maintenance

Accounts are typically numbered in a hierarchical manner, with main account numbers and subaccount digits. The tililuettelo is created during the setup of the accounting system and updated as the business evolves. When new accounts are added, appropriate opening balances are recorded, and changes are documented to maintain consistency across accounting periods.

Examples

Assets: 1000 Cash, 1100 Bank; 1200 Accounts receivable. Liabilities: 2000 Accounts payable. Equity: 3000 Share capital. Revenue: 4000 Sales. Expenses: 5000 Salaries, 5100 Rent.