Nominal accounts, also referred to as analysis codes, are used to breakdown and analyse the information you enter into TASBooks. Think of them as pots, which hold the various types of entries in your accounts. You need one nominal account for each of type of expense, asset, liability etc, for your business. For example, income from your sales will go in one pot. If you wanted to break this down further, you could have more than one nominal account for different types of sales.
By breaking down your entries into nominal accounts, TASBooks can create an accurate picture of your financial position. Financial reports like the Profit & Loss and Balance Sheet, build their information using values of your various nominal accounts.
Nominal accounts are broken down into the following types. Depending on the type, the number of the nominal account needs to fall within a specific range. This enables TASBooks to pick up the correct information on your financial reports.
||Assets which your business intends to retain for the coming year rather than convert into cash. Typical fixed assets include property, office equipment and motor vehicles.
||An asset which can be easily realised. It can also be termed a liquid asset; for example, money in the bank or in petty cash, debtors or stock.
||Amounts owed by your business to third parties including suppliers, banks, tax authorities and employees.
||Money that comes into your business, for example, from sales, fees or from donations.
|| Items that your company buys which do not go to actually create your company's product or service. For example, stationery, petrol, promotional goods.
|Cost of sales
|| The direct costs incurred as a result of making sales. For a retail company, this may mean the cost of purchasing goods, net of carriage and purchasing discounts, less the movement in the value of the stock. For a manufacturing company, it may mean the cost of producing the goods sold.
The above types can be broken down further into categories, for example, liabilities can be long term, or current. When you create a new nominal account, you'll be asked to select a category for the account, and from the category, TASBooks will then be able to group the account into the correct analysis type.