Sage Instant Accounts For Dummies

Chapter 12

Running Your Monthly and Yearly Routines

In This Chapter

Discussing accruals, prepayments and depreciation

Juggling journals

Running month-end tasks

Clearing stock and clearing the audit trail

Carrying out year-end routines

The nominal ledger lists all the nominal codes that your company uses. These nominal codes, when grouped together, form the record of your company’s assets, liabilities, income and expenditure. The codes are grouped together in categories identified in your Chart of Accounts, which I talk about in Chapter 2.

Sage uses the accounting principle of accrual accounting. Accrual accounting isn’t just about accruals (bizarre as that may sound!); rather, accrual accounting is about recording sales and purchases when they occur, not when cash changes hands – you match revenue with expenditure. For example, if you’re preparing the accounts for the month of June, you need to make sure that you enter all the sales invoices for June even if you haven’t been paid ...