I have a rental property, I need to know where I would allocate gas/electric. I assume I would not use 72xx as this would be for office gas/electric. I would expect it to be under 5xxx or 6xxxx
Would you not create each rental property as a seperate department and use the 72xx range codes within that?
Sorry, don't know the specifics as I don't use Sage but just thought that I would put the above out there either for yourself or others to fill out the detail.
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Shaun
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I agree. That's what I do. Create each rental property as a department and then use the nominal codes as usual. This will allow you to create individual reports for each property.
As for the use of nominal codes, you are not constrained by what is in Sage and you can make up your own. The standard Sage configuration is for a typical business, but it is not tailored for a rental property business. You need to do a quick exercise to identify all the potential types of expenses that you may incur in running this type of business and then create/rename the nominal ledgers accordingly. I went as far as completely re-creating the chart of accounts to be more suitable to my needs. The good news is that you need to do this exercise only once and the framework will be there for all future properties that you purchase and let.
Hope this helps.
Fabs xx
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I'm in agreement with both your suggestions, but should it not be allocated to the 5xxxx or 6xxxx ranges as it's a direct expense, 72xx is a overhead ?
I prepare the accounts for a number of property investors and in my experience the distinction between direct expenses and overheads is not very relevant to a property investment business. I personally place all the expenses under the overheads and not use direct expenses section of the P/L account. I normally produce separate statements for each property and the investor is interested in the net profit figure for each property to assess if that property is worth keeping in the portfolio. The gross profit figure is not normally of interest.
Different investors may think differently so it greatly depends on what information the client is after to manage their business effectively.
Fabs xx
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