I renamed Product Sales 4000 to "Rental Income" as this is my main sales income. But I have just noticed "Rent Income" in Other sales 4904. This is the default.
Is it okay to use 4000, or should I move all my rental income to 4904 ?
The 4904 default, being in the other sales section, is intended for companies where rental income isn't their primary business. For example it could be used where your business is selling edifargs, but has a little spare office space so rents it out to another company.
If your rental income is your primary type of sale, then renaming 4000 as necessary is the right way to do it.
The truth is, though, it doesn't really matter. You can use whatever nominal codes you like for whatever purpose you like, provided the chart of accounts is set up to reflect what you use - the defaults are really just sensible guidelines.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
I agree with Vince. Also - you indicate from the above that you have other sales income so you could also set up eg 4001 to record your other sales, if it helps you to split it out for monitoring purposes.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
