There are traditional general accounting rules when numbering accounts, and it’s best to at least use 4 characters for each account.  Due to the expected longevity of the business as it continues to grow, it offers a business more flexibility as the addition of new accounts becomes a necessity for numerous combinations.  When developing your own numbering system, it’s recommended to prepare a COA outline and use it as a template for continued use throughout your business’ history, so as to help prevent an unorganized COA layout.

The following is a traditional list of the different types of accounts and their numbering range:

Asset accounts are classified in the 1000 range.

Liability accounts are classified in the 2000 range.

Equity accounts are classified in the 3000 range.

Income accounts are classified in the 4000 range.

Expense accounts are classified in the 5000 range.

Other Income accounts are classified in the 6000 range.

Other Expense accounts are classified in the 7000 range.

I hope this helps.  Check out our QuickBooks Training Classes in the Houston area.