In This Chapter
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 is all about recording sales and purchases when they occur, not when cash changes hands – you match revenue with expenditure. For example, if you prepare your accounts for the month of June, you need to make sure that you enter all the sales invoices for June, even if your customers haven't paid them yet. You also check that all the purchase invoices relating to June are posted, so you get an accurate reporting position.
In this chapter, I show you how to run wizards and create journals by using the nominal codes to run the monthly and yearly routines. You need these routines to produce timely and accurate reports for management decision making.
Checklists are vitally important to the smooth running of month-end and year-end processes. You can design your own checklists or use the ...