Hi everyone. I'm revising for my forthcoming CPAG exam and using Sage One as I think this is what I will be using at the exam centre. I'm
working from an Osborne Computer Accounting Systems Workbook. I've come across something that is confusing me - but this may be because I'm not familiar with the software (I'm a Quickbooks user at work) and I also don't have experience of setting up accounts in a piece of software - can I get your opinions?
Part of the preparation is to input various opening balances for nominal ledger, supplier, customer and bank accounts. I was under the impression these would be the balances on the last day of the previous financial year, which are then input as the opening balances (the clue's in the name!) on the first day if the current financial year. However the software only allows you to input these figures on the final day of the previous financial year...and then if you want them to show up in the various reports you need to run for the exam (or pretend exam in my case) you need to include the final day of the previous financial year in the reporting period (or tick 'include brought forward balances' for the TB).
Is this correct from a book-keeping perspective? If I want to report on the current financial year shouldn't I just be able to select the correct dates (e.g. 1/7/16-31/7/16) rather than include the final day of the previous period (e.g. 30/6/16-31/7/16)? I feel people may not only get 'caught out' by this in an exam situation, but that it's not how things are 'supposed to' work.
Looking forward to hearing your thoughts and thanks in advance!
Desna
I can't comment on Sage One specifically - and opinions do vary on this one - but my opinion is that 'opening balances' should be dated as the last day of the previous financial year (and anyone who disagrees can be introduced to my cricket bat).
The main reason is because you can then - at any time throughout the year - run a report dated on the last day of the prior year, and the resulting figures should match the closing trial balance and/or (depending how you report) the balance sheet of the previous year.
If, on the other hand, you posted them as the first day of the new year, that ability is lost; there may be other transactions in the current year on that same date.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Hi Desna
Agree with Vince, enter as last day of prior period. Run the report either way you stated.
It shouldn't trip people up in their exam if their training provider mentions the dates, although if they don't, it's just another test to see if you get the correct report, so well spotted.
When you hook your exam you need to advise the centre it's sage one you need. In fact I would do that now in readiness as you may need to find another centre (some still run with sage 50, some don't do sage 50 at all and only use One and instant!).
Also worth noting that you can book for the centre to sit the exam and mark it or invigilation only and your training provider will mark it ( tell them early enough so they can send th exam across to the centre)
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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
Hi . I have just done my Cpag assessment last week and used sage one.
In the assessment you are given the dates that the accounts will start from so when you enter the date in settings the date used for the opening ledger and opening bank balances automatically defaults to the last day of the following period. So if you enter the 1st of April as the start date the opening balances date defaults to the 31st of march.
Please feel free to get in touch if you need any more help.
