Sage Line 50 Hints & Tips (vol.1)
Backups
Get in the habit of backing up your Sage data regularly. We suggest you backup to a USB memory stick, kept away from the premises overnight. Don’t forget to password protect the data if you consider it to be sensitive.
In Sage 2009 (v15) the default backups can be very large, as the backup includes report files and layout templates. These can be re-installed from the installation disks, therefore from the “advanced options” tab ensure that only “Data Files” are included. This ensures the backup is a smaller size, and therefore is created quicker.
If you are e-mailing us a backup for us to prepare the year-end accounts, then again please ensure that only the “Data Files” are included.
Change program date
We find a lot of posting errors occur because the default posting date is today’s date. If you are posting a number of historical transactions with the same date, then use “Settings – Change Program Date” to select an appropriate date before you start posting.
Capital equipment
Purchases of capital equipment should be charged to code 0020 (Plant and machinery) or 0030 (Office equipment) or 0040 (Furniture and fixtures) or 0050 (Motor vehicles).
However, there is no need to capitalise small purchases, and we frequently have to adjust these. We suggest that you charge the purchase of small items (less than £250 each) to code 7800 (Repairs and renewals) or 7504 (Office stationery), depending on the type of expense.
Regular bank reconciliations
One of the most important checks is to reconcile the bank transactions recorded on Sage to those on the bank statements. The bank balance recorded on Sage should then agree with the bank statements.
We recommend that you should reconcile the bank at least every month or every four full pages of bank statements, whichever comes first. We can provide training or assistance with this if required.
After reconciling, any old transactions which have not cleared the bank should be investigated. These may arise from posting errors, which should then be corrected.
Understanding the account codes
The codes from 0000 to 0099 are for fixed assets.
The codes from 1000 to 1199 are for current assets, including stocks and debtors.
The codes from 1200 to 1299 are for bank and credit card accounts.
The codes from 2000 to 2299 are for current liabilities.
The codes from 2300 to 2399 are for long-term liabilities.
The codes from 4000 to 4999 are for income.
The codes from 5000 to 5999 are for the cost of purchasing and processing goods for resale.
The codes from 6000 to 6999 are for productive labour costs and selling expenses.
The codes from 7000 to 7999 are for overhead expenses.
The codes from 8000 to 8999 are mainly for end of period adjustments for depreciation and bad debts, but also include insurance and other odd expenses.
9998 is the Suspense account. If you make any postings to this account, then there should be an equal and opposite posting made, so that the balance always comes back to zero.
9999 is Mispostings, and we recommend that you do not use this account.
Missing account codes
Some codes that you might expect are not in the standard Sage coding list. Our recommended additional codes for these are:
8500 - Corporation tax charge for the year (not 2320 which is the balance sheet liability). This only applies to companies.
8600 - Dividends paid. Again, this only applies to companies.
3300 – Drawings (proprietor or partner) for a sole trader or partnership.
Note that if you use an account number from 8300 onwards, the balance sheet will no longer balance. You can correct this by amending the Chart of Accounts. We can provide assistance or training on amending the Chart of Accounts if required.
For more information contact Tony Collins at our Brighton office on 01273 72513 or email him on tony.collins@plummer-parsons.co.uk
