The Chart of Accounts is a systematic list of the financial accounts used by a company. Each account included in the chart has an associated normal balance, determined both by the nature of the type of account (assets, liabilities, equity, etc.) and where it appears on the balance sheet. Companies use the normal balance to identify when records are correct; when transactions are entered properly, the sum of all account balances should match the total of all debit and credit transactions. The Chart of Accounts Normal Balance helps companies ensure that their books are accurately reflecting their financial position.