Hi Cora,

If you would like to know the meaning behind each account in your Chart of Account and whether you need them or not, you can consult one of our accountant partner by following the link below:

http://na.sage.com/ca/accountant/locator

Hope this helps.

I also like to know what is the difference between

Acct #1300 Purchase Prepayments and # 1320 Prepaid Expense & Deposits?

#1300 Purchase Prepayments is linked to the Accounts Payable module.  If you use the Payments journal to pay a vendor in advance of an invoice, and tuck the amount into the 'Prepayment amount', it will be added to the cheque amount. 

Since this is a linked account, you shouldn't post transactions directly to it.

#1320 Prepaid Expense & Deposits is not linked, so it would be a good place to put adjustments for such things as unused insurance premiums at year end (prepaid insurance) and other expense accrual amounts.

The main difference would be that generally #1300 items would be that #1300 items would be un-invoiced, and #1320 items would be invoiced, paid items that you need to accrue at year end.

I don't know that I have ever seen any 'official' guide to what the accounts are / should be used for.  Possibly some tutorials use the template accounts.

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Thanks Randy.

It never occurred to me to look at whether or not the accounts were linked. This makes sense. The last time I set up an account I used a trail balance but with that method I also had to enter Gifi numbers.

I guess there’s not easy way but must admit the templates may have more accounts than necessary for some.  

C.