Choosing nominal accounts
nicolatects
Registered Posts: 3
Hey
I'm inputting a lot of small expenses and I'm not sure whether to use specific nominal accounts for them, such as 8240 Refreshments for 'staff refreshments' and 7520 Office Stationery for 'office stationery' or more general accounts such as 0030 Office Equipment and IT - Cost and 8200 General Expenses. I've heard it's better to use fewer nominal accounts to keep things tidier but should I apply this to the exam?
Any thoughts would be greatly appreciated, thanks!
I'm inputting a lot of small expenses and I'm not sure whether to use specific nominal accounts for them, such as 8240 Refreshments for 'staff refreshments' and 7520 Office Stationery for 'office stationery' or more general accounts such as 0030 Office Equipment and IT - Cost and 8200 General Expenses. I've heard it's better to use fewer nominal accounts to keep things tidier but should I apply this to the exam?
Any thoughts would be greatly appreciated, thanks!
0
Comments
-
If in doubt, raise a new account! If this proves inappropriate, it is easier in future to consolidate accounts than to have to analyse them from scratch.0
-
Also the 7520 Office Stationery and the 0030 Office Equipment and IT - Cost are different accounts as the 0030 are for fixed assets such as tables, computers and printers where as 7520 is for expenses such as paper, pens, etc and as such should be kept separate.
Personally as most of my job is doing accounts production, i absolutely hate it when clients shove everything into general, sundry or 'other' accounts as it just ends up needing to be analysed anyway. Id rather have 10 well explained nominals than 1 general account.AAT Level 2&3 - 2016
AAT Level 4 - 2017
Personal Tax, Business Tax and External Auditing
ACA/CTA -
Certificate Level - Jan 20190
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership