What is a Chart of Accounts?
What is a nominal account?
Nominal accounts are records that track the different types of sales and purchases for your business, for example, bank charges, petrol or sales. Each nominal account has a unique nominal code reference to identify the account, though you can change them to use your own numbering scheme if needed.
When you enter a transaction in Sage 50cloud Accounts, you assign the relevant nominal code depending on what you're recording. For example, a sales invoice or a bank payment.
Default Layout of AccountsWhen you first set up your company in Sage 50cloud Accounts, your nominal accounts and Chart of Accounts are based on the business type you select. For example, sole trader, partnership, limited company or charity.
What does the Chart of Accounts consist of?
The chart of accounts is split into two areas - Profit & Loss and Balance Sheet.
TIP: To view the default Chart of Accounts, categories, and list of nominal codes - Click here >
Profit & Loss categories
To view the Profit & Loss categories - Click here >
|Sales||Income or revenue you generate by selling products or services.|
|Purchases||Purchases made by your company, for example, buying stock and any associated transport costs.|
|Direct Expenses||Costs directly involved in the sale of goods, for example, direct labour and sales commission.|
|Overheads||Business expenses that are not directly attributable to the cost of sales. This includes wages, rent, rates, annual depreciation and so on.|
|Taxation||Used for corporation tax and shows an expense for taxation on the profit and loss report after net profit.|
Balance Sheet categories
|Fixed Assets||Property, plant and equipment your company owns. This includes the original asset purchase value and the accumulated depreciation.|
|Current Assets||Includes assets owned by your business that have a short life, such as stock, cash and money in the bank.|
|Current Liabilities||Liabilities you have to pay in the near future, such as creditors, VAT Liability and short term loans, wages.|
|Long Term Liabilities||Liabilities that are not due in the current financial year, such as long term creditors.|
|Capital and Reserves||Capital introduced, share capital, unused reserves and the accumulated profit or loss.|
What can I do to the Chart of Accounts?
If necessary you can:
Sage Intacct is designed for companies that have more complex requirements. To learn more about how Sage Intacct can benefit your growing business visit our dedicated web page.