The number of digits used to describe each account in a chart of accounts drives the level of detail that can be recorded. The seven digit chart of accounts is needed by larger organizations in which management wants to track information about departments within divisions. The seven-digit coding structure requires the coding used for a five digit system as its baseline, plus two additional digits that are placed to the left of the five-digit codes to designate company divisions. In those cases where a business also wants to track its assets and liabilities by division, it will also be necessary to apply the additional two digits to balance sheet accounts.

A typical breakdown of a seven-digit chart of accounts is as follows:

Digits 1-2: Identifies the applicable operating division, such as the Boston division or Omaha division.

Digits 3-4: Identifies the applicable department, such as the accounting department or engineering department.

Digits 5-7: Identifies the account, such as accounts receivable, inventory, or accounts payable.

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The following sample chart of accounts uses divisions located in Boston and Omaha to demonstrate how a seven-digit chart of accounts could be structured.