Sage & accounts overview

Although you are not going to become a fully fledged management accountant by reading a web page, having read this guide you will be able to understand the objectives and goals and you can produce accounts each month that more closely represent what has taken place during the period.

You will be able to carryout a substantial amount of primary work leaving your accountant to tweak slightly to finalise the period's account.

The following topics should give you a good start:

Please note that you should not act alone based on the information in this site. Always seeks professional advice from a qualified accountant before making any change to accounting practice.

The nominal ledger is a way of tracking, what the company is worth and how it has made it's money.
Open period accounting is simple, no accounting period is closed off during the year, the accounting period is defined by the date of the transaction.
If you buy a years supply of something in one go, then the profit for that period will be reduced unfairly as the years supply should be spread evenly of the coming twelve months.
If you have the Sage Payroll you can set this up to be done automatically from the payroll.
When you have completed your VAT return you should journal the value of VAT in Sales and Purchases to the reconciliation account.
The principle is quite simple, some of the VAT you reclaim on vehicle expenses relates to the personal use of vehicles
This is probably the hardest and most overlooked entry
This may sound silly but you do need to think for yourself, your business may not be like any other, your management team may need more information in some areas than others.