Hotel and Sage Nominal Codes

[Helen74]

Hi,

We are currently refurbishing a hotel and are having extensive building works done. (£375000.00 spent so far on building works alone). I want to put the invoices through sage accounts but don't have a nominal code for refurbishment etc, so my question is :

Can I make a nominal code up and if so should it be amongst the asset codes as opposed to the expense nominal codes ? what would you suggest ?

Thanks.

 

[Bob]

Hi,

We are currently refurbishing a hotel and are having extensive building works done. (£375000.00 spent so far on building works alone). I want to put the invoices through sage accounts but don't have a nominal code for refurbishment etc, so my question is :

Can I make a nominal code up and if so should it be amongst the asset codes as opposed to the expense nominal codes ? what would you suggest ?

Thanks.

If you're spending that sort of money, you should be discussing this with your own accountant and not really on an online forum. Allocation of refurbishment costs correctly can have a significant impact upon your tax position.

 

[QuickHomeBuyers]

If you're spending that sort of money, you should be discussing this with your own accountant and not really on an online forum. Allocation of refurbishment costs correctly can have a significant impact upon your tax position.

Another good reason why book keeping should be left for accountants, firm.

 

[weebly_one]

I would say you could create a nominal code either in the fixed assets area near where you have your buildings assest. Make it it's own separate code and call it refurbishment and record all the costs there.

Then when you submit your accounts to your accountant at the year end, they can see easily how much has been spent and advice you on the best way to deal with it to be tax efficient.

I always say to my bookkeeping clients if you have a cost and you are not sure where to put it, create a new code in the area of where you think it should be - office expenses, vehicle, travel - and split it out - you can always consolidate codes at a later date but it is harder to split items off at a late date if you need to see what has been spent.

By putting codes next to similar ones in the chart of accounts then they can always be rolled up in the profit and loss or balance sheet.

Do make sure however before you process your Sage year end that any codes you have created are included in Sage's Chart of Accounts. You can use the F1 help in Sage to see how to do this. When you create a new code the system will warn you if it is not included.