Accruals and prepayments in the chart of accounts
Accruals and prepayments in the chart of accounts helps keep bookkeeping, control and VAT logic consistent inside the chart of accounts.
Chart of accounts
A growing UK chart of accounts reference for revenue, costs, balance sheet accounts and VAT-related control accounts.
Bad debts in the chart of accounts
The accounts, journals and VAT relief rules for customer debts you no longer expect to collect.
Bank accounts in the chart of accounts
One nominal account for every account the business holds money in or owes money on, each reconciled to its own statement.
Bonus and commission accruals
A bonus or commission earned in one period but paid in the next belongs in the period it was earned, together with the employer NIC and …
Card payment clearing in the chart of accounts
How a card clearing account bridges the gap between the till total and the smaller, later payout from your card provider.
Commission income in the chart of accounts
A business acting as agent records only its commission as turnover; the full value of the sale belongs to the principal, and getting that …
Customer prepayments in the chart of accounts
Money a customer pays before you deliver is owed back to them until you do, and its VAT is often due straight away.
Customs duties in the chart of accounts
Import duty is a cost of buying the goods. It belongs in stock or cost of sales, while import VAT goes to the VAT accounts.
Depreciation accounts in the chart of accounts
Depreciation needs an expense account and a matching accumulated depreciation account for each asset class, posted every month by journal.
Discounts and credit notes in the chart of accounts
Each kind of price reduction is posted differently, and prompt payment discounts change the VAT due as well as the amount received.
Employee advances in the chart of accounts
Money handed to an employee before they have spent it, or before they have earned it, is an asset of the business until it is settled.
Equity and share capital in the chart of accounts
Which equity accounts a company needs, and how a share issue splits between share capital and share premium.
Fixed assets in the chart of accounts
Set up one cost account and one accumulated depreciation account per asset class, post purchases at the right cost and tie the ledger to the …
Goods received not invoiced
When goods arrive before the supplier’s invoice, the cost and the liability belong in the period of delivery; a GRNI account holds them …
Goods sales in the chart of accounts
Split goods turnover by VAT treatment first and by channel second, so the VAT return and the margin report both come straight out of the …
Grants and subsidies in the chart of accounts
Grant income is recognised when the conditions are met and matched to the costs or assets it pays for, never simply when the cash arrives.
Holiday pay accruals in the chart of accounts
Leave that staff have earned but not taken by the balance sheet date is a liability the business must accrue, with the employer costs that …
Insurance in the chart of accounts
Insurance is paid up front and used up over the policy year, so most premiums pass through prepayments before they reach the profit and loss …
Interest and bank charges in the chart of accounts
Three small accounts that land in three different parts of the profit and loss account, and how to keep them apart.
Inventory accounts in the chart of accounts
Keep stock as a balance sheet account and move it through cost of sales, either with a period-end adjustment or with every sale.
Leasing accounts in the chart of accounts
For accounting periods beginning on or after 1 January 2026, FRS 102 lessees record most leases as a right-of-use asset and a lease …
Loans and financing in the chart of accounts
How to record borrowing so each facility reconciles to its lender statement and the balance sheet shows what falls due within a year.
Marketing and advertising in the chart of accounts
A marketing budget mixes deductible advertising with costs that HMRC treats differently, so the nominal codes need to separate them from the …
Office supplies and small equipment
The line between an office supply and a fixed asset is set by your capitalisation policy, not by the supplier’s description on the invoice.
Payroll liabilities in the chart of accounts
Every payroll leaves money owed to employees, HMRC and the pension scheme, and each of those creditors should clear to nil when paid.
Professional fees in the chart of accounts
Professional fees look like one cost line, but legal fees on buying an asset, accountancy fees for a director’s personal tax return and the …
Purchases and cost of sales in the chart of accounts
Cost of sales holds only the costs that rise and fall with what you sell, and getting that line right is what makes gross margin meaningful.
Rent and premises costs in the chart of accounts
Premises costs carry different VAT and timing rules, so rent, rates, service charges and deposits each need their own place in the ledger.
Repairs and maintenance in the chart of accounts
A repair restores an asset to its previous condition and is an expense; an improvement or a replacement of the whole asset is capital.
Retained earnings in the chart of accounts
The profit and loss reserve records every year’s profit after tax less dividends, and it decides how much a company can legally pay out.
Rounding differences in the chart of accounts
Pennies of difference appear wherever VAT or currency is calculated in more than one place; a single rounding account keeps them visible and …
Royalty accruals in the chart of accounts
Royalties are usually reported and paid quarterly in arrears, so the royalty on each period’s sales must be accrued in that period.
Security deposits in the chart of accounts
A deposit is money parked with someone else until a contract ends, so it is an asset when paid and a liability when received, never a cost …
Service revenue in the chart of accounts
Service income is earned as the work is done, so the ledger needs accounts for fees, deferred income and accrued income rather than one …
Shop fittings in the chart of accounts
Freestanding shelving, counters and displays are shop fittings; work built into a rented unit is a leasehold improvement, and the two are …
Software and subscriptions in the chart of accounts
Most software is now a subscription expense, but annual plans, overseas suppliers and bought licences each change how it is posted.
Supplier prepayments in the chart of accounts
A deposit you pay a supplier is something you are owed until the goods or services arrive, and its VAT waits for a proper invoice.
Taxes payable and provisions in the chart of accounts
Tax owed to HMRC and provisions for uncertain obligations both sit in liabilities, but they are measured and reviewed in very different …
Telephone and internet in the chart of accounts
Phone and internet bills look simple until a handset is bundled into the contract or the line is in someone’s home; those are the cases …
Trade creditors in the chart of accounts
Trade creditors is what you owe suppliers for invoices received, and every pound of it should be traceable to a supplier account.
Trade debtors in the chart of accounts
The trade debtors account is a single total that must always agree with the sum of your customer accounts.
Travel expenses in the chart of accounts
Travel costs carry different VAT and tax rules, so fares, hotels, meals, mileage and entertaining each need their own expense account.
Utilities in the chart of accounts
Utility bills arrive late, are often estimated and carry their own VAT rules, so the account needs a monthly accrual habit and a careful …
VAT accounts in the chart of accounts: output VAT, input VAT and VAT control
Three VAT accounts, how they empty when you file and pay, and how each balance lines up with the boxes on your MTD VAT return.
Wages and salaries in the chart of accounts
Gross pay, employer National Insurance and employer pension each need their own expense account, with directors’ pay separated from staff …
Warranty and returns provisions
If customers can expect repairs or refunds on goods already sold, the expected cost belongs in the period of sale, measured from the …
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