Sage One For Dummies®

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Table of Contents

About This Book
Conventions Used in This Book
What You’re Not to Read
Foolish Assumptions
How This Book Is Organised
Part I: Setting Up and Registering Sage One
Part II: Using Sage One Accounts
Part III: Introducing Sage One Cashbook
Part IV: Working with an Accountant
Part V: The Part of Tens
Icons Used in This Book
Where to Go from Here
Part I: Setting Up and Registering Sage One
Chapter 1: Introducing Sage One
Meeting the Typical Sage One User
Enjoying the Benefits of Sage One
Acquainting Yourself with the Three Variants of Sage One
Cashing in with Sage One Cashbook
Keeping track with Sage One Accounts
Sharing data with Sage One Accountant Edition
Registering for Sage One
Navigating Sage One
Checking out the Summary screen
Introducing Jingles
Chapter 2: Sorting Out Your Settings
Making Sage One Your Own: Creating Individual Settings
Paying up with Billing Settings
Deciding on your desired Service Settings
Using User Settings
Taking Control With Your Business and Financial Settings
Displaying Business Settings
Getting the VAT right: Financial Settings
Getting paid: Invoice Settings
Using a Checklist
Chapter 3: Keeping in Contact: Setting Up Your Records
Creating Customer Records
Entering customer contacts
Sorting customer records
Recording Supplier Details
Entering supplier records
Sorting your supplier records
Tracking Down a Contact
Editing Your Contact Details
Deleting Contacts: You’re Outta Here
Producing Product/ Service Records
Banking That Income: Creating New Bank Records
Chapter 4: Recording Your Opening Balances
Entering Your Opening Balances
Creating Products and Services for Unpaid Sales Invoices
Recording an Unpaid Purchase Invoice
Running Through Some Exercises
Part II: Using Sage One Accounts
Chapter 5: Entering Invoices for Customers and Suppliers
Getting Paid: Setting Up Sales Invoices
Working With Sales Invoices
Viewing and editing a sales invoice
Voiding a sales invoice
Entering a discount for a sales invoice
Printing your sales invoice
Emailing your sales invoice
Giving Credit Where It’s Due: Raising a Credit Note
Recording Purchase Invoices
Recording a Supplier Credit Note
Trying Out Some Invoice Exercises
Chapter 6: Recording Payments from Customers and to Suppliers
Recording a Customer Payment
Handling Other Customer Payment Tasks
Running an Outstanding Sales Invoice report to check who’s paid
Refunding an invoice
Paying Up: Recording a Supplier Invoice
Paying part of a supplier invoice
Producing an Outstanding Purchase Invoice report
Getting in Some Practice
Chapter 7: Banking on Your Bank Accounts
Counting On Your Default Bank Accounts
Keeping current with your Current account
Handling your Cash in Hand account
Editing your bank account
Entering Other Bank Payments and Receipts
Recurring income
Stopping the recurring income
Paying cheques into your bank account
Making payments other than supplier payments
Shelling Out with Expenses
Setting up a recurring expense
Stopping a recurring expense
Refunding expenses
Transferring Money between Bank Accounts
Getting Petty: Dealing with Petty Cash
Carrying on with Credit Cards
Processing a payment on your credit card
Making a payment against your credit card
Settling Any Differences: Reconciling Your Bank Account
Trying Things Yourself
Answering Trying Things Yourself
Chapter 8: Running Your VAT Return
Creating a VAT Return
Submitting Your VAT Return
Registering to submit your VAT returns online
Using HMRC’s website
Sending your return directly from Sage One
Coughing Up: Paying VAT
Having a Go Yourself
Chapter 9: Preparing Reports
Looking at the Reports Sage One Can Run
Using the Different Reports
Checking your Profit and Loss report
Running a Balance Sheet report
Balancing things up with a Trial Balance
Drilling down to the detail
Reporting Yourself!
Part III: Introducing Sage One Cashbook
Chapter 10: Setting Up Your Sage One Cashbook
Understanding What Sage One Cashbook Can Do for You
Working with your accountant
Inviting your accountant to join in the fun
Downloading Your Free Trial
Tracking Your Cash with Sage One Cashbook
Keeping up-to-date with Cashbook
Taking a peek at the Banking screen
Checking out your Summary
Cultivating your Contacts
Checking Your Settings
Chapter 11: Entering Data into Your Cashbook
Getting Started with Opening Balances
Setting Up and Using Cashbook Bank Accounts
Editing your bank account details
Transferring money between accounts
Giving Credit to Cashbook
Cashing in with hard cash and paper cheques
Bagging bank transfers
Logging Expenses in Cashbook
Again, and again, and again: Dealing with a recurring expense
Stop! In the name of Sage: Halting a recurring transaction
Give it up: Refunding expenses
Recording Payments from Petty Cash
Wiping Away Mistakes: Editing Bank Entries
Paying into Your Bank Account
Checking Your Bank Statements
Reconciling your bank account entries
Viewing a snapshot of your business
Running a Profit and Loss report
Rehearsing with Sage One Cashbook
Answering the Have a Go Questions
Part IV: Working with an Accountant
Chapter 12: When the Going Gets Tough: Calling an Accountant
Deciding Whether You Need an Accountant
Starting from scratch: Advice on setting up a business
Helping assess yourself: Tax returns
Dealing with company tax returns
Advising on tax
Submitting VAT returns
Operating the payroll
Preparing your year-end accounts
Filing information to HMRC and Companies House
Finding an Accountant
Listening to word of mouth
Using local network groups
Linking up with other businesses
Local sites for local people: Finding your chamber of commerce
Checking out business directories – with caution
Networking online
Accessing the Sage Accountants’ Club
Chapter 13: Collaborating with Sage One Accountant Edition
Introducing Sage One Accountant Edition
Inviting Your Accountant to Join the Sage One Party
Logging In to Your Financial Data
I Name that Account in One: Nominal Account Activity
Part V: The Part of Tens
Chapter 14: Ten Top Troubleshooting Tips
Chapter 15: Ten Ways to Run Your Accounts System Effectively
Bank Your Cash Regularly
Monitor Customers that Haven’t Paid
Check Your Cash Flow
Keep on Top of Supplier Payments
Maintain an Accurate Petty Cash System
Store All Your Receipts
Reconcile Your Bank Accounts Regularly
Discover the Benefits of Easy-to-Use Filing Systems
Make Full Use of Checklists
Report in a Timely Fashion
Appendix: Glossary
Cheat Sheet

Sage One For Dummies®

by Jane Kelly, ACMA


About the Author

Jane Kelly trained as a Chartered Management Accountant while working in industry. Her roles ranged from Company Accountant in a small advertising business to Financial Controller for a national house builder. For the last few years Jane has specialised in using Sage accounting software and has taught a wide variety of small businesses and employees the benefits of using Sage. More recently Jane has been involved in writing For Dummies books, the first one being Sage 50 For Dummies, which continues to be a popular choice for Sage users. This latest book has been produced to explain the benefits of the Sage One service that has recently launched. Jane saw a gap in the market for providing a book that offers a Have a Go section where readers can use dummy data to try out the online accounting service.

Author’s Acknowledgments

I hope that this book will help many of the small business owners that currently struggle keeping up-to-date with their finances. I want people to understand that if a system is set up properly, it will be very easy to use and the business will gain maximum benefit from it.

I want to thank everyone at Wiley who have been very kind and supportive, particularly Rachael Chilvers and the rest of the development team who have turned my words and pictures into the For Dummies book that you see before you.

I would also like to thank the staff at Sage UK Limited, particularly Michael Barber and Richard Hughes, who have patiently answered my questions and comments about Sage One.

Finally, I would like to thank my husband Malcolm and my daughter Megan who have put up with me disappearing into the office to work on the book for what must have seemed like a never-ending time.


I would like to dedicate this book to my daughter Megan and my husband Malcolm. Without their support none of my books would ever have been created.

Publisher’s Acknowledgements

We’re proud of this book; please send us your comments through our Dummies online registration form located at

Some of the people who helped bring this book to market include the following:

Commissioning, Editorial, and Vertical Websites

Project Editor: Rachael Chilvers

Commissioning Editor: Claire Ruston

Assistant Editor: Ben Kemble

Development Editor: Andy Finch

Technical Editor: Richard Hughes

Proofreader: James Harrison

Production Manager: Daniel Mersey

Publisher: David Palmer

Cover Photos: © iStock / designalldone

Cartoons: Ed McLachlan

Composition Services

Project Coordinator: Kristie Rees

Layout and Graphics: Claudia Bell, Joyce Haughey

Proofreader: Melanie Hoffman

Indexer: Claudia Bourbeau

Publishing and Editorial for Consumer Dummies

Kathleen Nebenhaus, Vice President and Executive Publisher

Kristin Ferguson-Wagstaffe, Product Development Director

Ensley Eikenburg, Associate Publisher, Travel

Kelly Regan, Editorial Director, Travel

Publishing for Technology Dummies

Andy Cummings, Vice President and Publisher

Composition Services

Debbie Stailey, Director of Composition Services


Accounting has been around for thousands of years and still forms part of everyday business life. It’s core to all businesses and is as important as any other process such as paying your staff or buying stock.

But you don’t start a business because you want to produce accounts. You start a business because you have a passion for what you do and you want to achieve success. The accounting side is just a necessary part of the process.

When Sage was established in 1981, the emerging technology consisted of floppy disks and an Amstrad office computer. Out of that spirit of innovation came the first Sage software package designed to help businesses with basic accounting. These days, businesses have an ever-increasing choice when it comes to deciding on how to run their business and how to record their accounts. Some use spreadsheets; some prefer to do it manually using receipts and notebooks; while others use accounting software. And with computers and the Internet increasingly present, more and more people are using laptops, iPads and mobile phones to help run their business and are looking for the solutions to fit their needs.

We too have come a long way from those first floppy disks. Sage is now a global company. A leading supplier of business software to 6.3 million businesses worldwide. With over 30 years’ experience of working with businesses of all sizes, we’ve continued to develop our accounting and business software. And in January 2011 we launched Sage UK’s first online accounting solution – Sage One.

We talked to hundreds of small businesses and accountants all across the UK to find out what they needed from an accounting service. And our goal became delivering safe, simple online accounting, supported by the experts.

Sage One benefits from the advances in technology that have led to the introduction of Software as a Service – essentially, software that is run over the Internet or ‘cloud’, via an Internet browser. These cloud services offer many advantages to businesses. They’re typically cheaper than their traditional desktop counterparts because there are no production or packaging costs. And because you can access them from Internet-enabled devices, such as PCs or Macs, iPads and even mobile phones, you’re less restricted and can operate your business on the move.

We want to make it really easy for business owners to run their business using online services. We believe that necessary business processes, like accounting, shouldn’t get in the way of you actually running your business. But because we recognise that the relationship between a small business owner and an accountant is important, we designed Sage One to allow them to work together easily, efficiently, online and in real time.

The aim of Sage One For Dummies is to help you maximise the value of using Sage One to manage your business finances. As Sage One requires no previous accounting knowledge there’s a real synergy between Sage One and the For Dummies brand. For Dummies books take away the jargon and strip back complicated processes, making them easy for the inexperienced, which is exactly what Sage One is all about.

We understand that you didn’t get into business to produce accounts. So, by making the necessary parts of the process as simple and straightforward as possible, you can get on and enjoy running your business.

Chris Stonehouse

Head of Sage Online, Sage UK Limited