Categories and groups Each ledger account has a category and group to organise accounts for accurate profit and loss and balance sheet reports. Profit and loss | Group | Category | Description | | | Income | Sales | Income from the things you sell. | | | Other income | Other sources of income. | | | Expenditure | Direct expenses | Costs directly related to things you sell. For example: packaging, labour charges, import duty etc. | | | Overheads | Other costs such as staff wages, utility bills, business expenses etc. | Balance sheet | Group | Category | Description | | Asset | Bank | Balance of your bank accounts and credit cards. | | Fixed assets | Value of your assets such as your property, any equipment you own, any company cars or other vehicles. | | Current assets | Value of your stock and the amount owed to you by your customers. | | Liability | Current Liability | Amount you owe to creditors such as the total amount owed to your suppliers. Amount owed to HMRC or Revenue for VAT and PAYE. | | Capital | Equity | Any capital bought into the business such as your profit (or loss). |
Nominal codes Use a number to find and sort your ledger accounts. If you moved from another accounting system like Sage 50, we match the codes you used before. You can use any number that suits you, but by default, we use the following ranges: - Assets: 0001 – 1999
- Liabilities: 2000 – 2999
- Capital: 3000 – 3999
- Income: 4000 – 4999
- Expenditure – Direct Expenses: 5000 – 5999
- Expenditure – Overheads: 6000 – 9999
VAT Rate Set a default VAT rate on ledger accounts to ensure transactions use the correct rate. When you select the ledger account, it automatically uses the set VAT rate, which you can change per transaction. This is useful when most transactions for an account use the same VAT rate. For example, sales likely use the standard VAT rate. If VAT is not required, choose No VAT.
Visibility To reduce errors, you can set up ledger accounts for specific transaction types. For example, sales ledger accounts are only for sales transactions. Visibility checkboxes determine which ledger accounts are available for each transaction type. If you can’t see a ledger account, check the visibility setting and choose the most appropriate one for your business. All ledger accounts are available for journals and reports. Example: You buy stationery for the office and enter it against the Office Stationery ledger account. If you return some items and need to record the refund, but the account is only visible for Other Payments, you can't select it for Other Receipts. To fix this, change the visibility on the Office Stationery ledger account to include Other Receipt. |