Introduction to the chart of accounts
The Chart of Accounts is a list of all the accounts used by your business. These accounts are known as nominal ledger accounts.
What is a nominal account?
Each nominal account has a unique nominal code to identify the account, though you can change them to use your own numbering scheme if needed. When you enter a transaction in Sage Business Cloud Accounting, you assign the relevant nominal code depending on what you’re recording. For example, a sales invoice or a bank payment.
The Chart of Accounts defines the category of each nominal account and determines where it appears on your management reports. You can use these to analyse your income, expenditure, assets, liabilities and capital and means you can see how your business is performing.
About the Chart of Accounts
Sage Business Cloud Accounting uses a standard Chart of Accounts, including control accounts. Control accounts are special nominal accounts used by Accounting when recording transactions to ensure that items such as your VAT are recorded correctly in your accounts.
While the Chart of Accounts in Sage Business Cloud Accounting is suitable for most small businesses, you can customize it as needed for your business. Except for control accounts, you can edit all nominal general ledger accounts.
Accessing the Chart of Accounts in Sage Business Cloud Accounting
Go to Settings then click Chart of Accounts. Read more >