Imbercal

Accountancy is packed full of strange and obscure terms - weve tried to remove as many of these as possible from Imbercal, but there may be some that you still find confusing.

Each business will prepare its accounts up to a specified date. A financial year will normally last 12 months, except for in your first year, and can be any day you choose, although month ends are customary.

The gross value is the amount of the transaction after VAT.

The net value is the amount of the transaction prior to any VAT being added.

A summary of all transactions relating to a particular nominal type. Its basically a specific section of your accounts that itemises revenue/expediture. Examples would be: - Sales - Rent - Plant & Machinery The nominal accounts are categorised under groups and subgroups, so for example the nominal account 'Staff Salaries' makes up part of a companies 'Gross Wages', which in turn make up part of your 'Overheads'.

A summary of all nominal accounts.

This specifies the nominal account to which transactions are posted. For example, accountancy fees would go to the nominal account "audit and accountacy fees".

Money paid out of the business.

The amount of time given by you to your customers to pay your invoices or by your suppliers to you for payment of their invoices. This is normally refelceted in the number of days.

Money received into the business, normally from customers.

A summary of amounts included in all nominal accounts for a particular period specified.

Value Added Tax. If you are VAT registered, you must charge 15% on your sales as VAT but can recover any VAT charged to you on purchases made. This is then submitted to the VAT office using a VAT Return on a monthly, quarterly or annual basis depending on your registration.