Your chart of accounts (CoA) is the list of headings (or homes) that your accounting package uses to categorise your business income and expenses. By grouping transactions in sufficient detail you can really understand whats going on in your business. For example rather than just recording marketing as a lump sum, break it down further eg Pay per click, PR, trade shows etc.
The Numbers Coach -Demystifying business numbers and jargon to help you succeed in business