We have just started using Sage for our accounts and one of the questions that I have is about the petty cash opening balance.
Our financial year starts in April and i had requested that the petty cash be balanced off and start fresh for 1st April. However this wasnt done and i now have a petty cash sheet spread over the last week in March and the first week of April!
How does this work in Sage how do I show there to be a spend relaiting to March. Would that be an opening balance? Then would the petty cash amount be entered as the full amount?
Do you have a Trial Balance from the previous financial year from your accountants? You should only enter Opening Balances in Sage from a full Trial Balance, as using the Opening Balance function puts opposite entries into the suspense account, thus when you enter the full TB the suspense account is zeroed. Whatever the balance was in the petty cash as at 31 March will be your opening balance for 1 April, but you need balances to enter for all your Balance Sheet accounts. You cannot account for petty cash spend in March, as this happened in your previous year and should be accounted for in that year. I should speak to your accountant if you're not sure.
We have never used accountants before as our income has previously been under the threshold and our accounts have been independently examined. Dont have trial balances, also as we are now over the threshold we have to start using accountants so I can speak to him when I find one! i have a couple of appointments this week to get quotes.
What structure is your business? Sole Trader/Partnership/Ltd Co?
It may be that you are referring to audit threshold but if you are referring to that then i would expect you would have used the services of an accountant by now to prepare your accounts.
