Choosing nominal accounts

nicolatectsnicolatects Registered Posts: 1
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!

Comments

  • PeterCPeterC Registered, Tutor Posts: 143
    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.
  • CSan89CSan89 WiltshireRegistered Posts: 163
    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.
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