Virtual Event
The Backbone of the Accounts: Demystifying the Nominal Ledger
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#1. Why is a well-structured Chart of Accounts important?
#2. What is the main benefit of using consistent numbering conventions in the Chart of Accounts?
#3. Why are clear posting narratives important?
#4. Which of the following best describes a disbursement?
#5. When managing bulk disbursements (e.g. Land Registry or HMCTS), what is most important for efficiency?
#6. What is the purpose of an accrual?
#7. What happens if accruals or prepayments are not reviewed and released correctly?
#8. What is the key difference between profit and cash?
#9. Which document is generally required to reclaim VAT?
#10. What is “blocked input VAT”?
The Backbone of the Accounts: Demystifying the Nominal Ledger
Length: 3 Hours
Published March 2, 2026 | Last Updated on March 2, 2026
Who is this training for?
This online workshop is for Solicitors, Lawyers, Accountants, Compliance Officers, COFA’s, Legal Accounts Professionals, Legal Cashiers and anyone that has any involvement in working in legal finance and compliance.
Purpose of this training?
This workshop is designed to strengthen participants’ understanding of core financial management principles and ensure consistent, accurate, and meaningful financial reporting across the organisation.
It focuses on how the Chart of Accounts underpins all financial reporting, including sensible use of nominal codes, appropriate numbering conventions, and striking the right balance between too much and too little expenditure detail. It also highlights the importance of clear posting narratives to support reporting where nominal differentiation may be limited.
The session builds understanding of key accounting concepts such as accruals and prepayments, how they function, why they matter, their impact on the balance sheet, and the importance of reconciliations and year-end controls.
A significant component focuses on Value Added Tax (VAT).
Overall, the purpose is to improve financial accuracy, efficiency, compliance, including VAT, and the quality of information available for decision-making.
Chart of Accounts
- Understanding how they underpin everything
- Looking at numbering conventions, why it’s important
- Differentiating between expenditure types
Posting Narratives
- The importance of detailed and clear narratives
Managing Expenses
- Setting policy
- Repayments & any impact on payroll
- Disbursements vs business expenses
Managing Bulk Disbursements (Land Registry, HMCTS)
- Best ways of managing these from an efficiency point of view
- What to do if you don’t have a matter reference
- Records to keep and posting dates (e.g. date of HMCTS statement vs date of payment taken)
Use of Purchase Order Systems
Accruals and Prepayments
- How they work
- Why it matters
- Remembering to release accruals/reduce prepayments
- Keeping reconciliations and balancing these at year end
- Impact on Balance Sheet
Purchase Ledger
- Use and set up
- Why it’s important
- Impact on Balance Sheet
Budget Setting and Cash Flow Forecast
- How to set a budget and forecast cash.
- Difference between cash and profit
Management Reporting Pack
- Types of reports you can produce in a monthly pack for senior management teams
Value Added Tax
- Basic Principles of VAT
- How VAT works
- VAT Rates and why they matter
- Evidence Needed to Reclaim VAT
- Full VAT invoices
- VAT numbers and how to check them
- Retailer’s receipts and till rolls
- Circumstances in which no invoice is needed
- Pro forma invoices and requests for payment
- Invoices addressed to employees-acceptable or not?
- Credit card and procurement card statements
- International
- Services from all non UK suppliers including the ‘Reverse Charge’
- How Much VAT to Reclaim
- ‘Blocked’ input VAT which is never reclaimable
- Apportionment – business and personal usage
- Specific Expenses
- Disbursements
- Directors’ expenses
- Employees’ expenses and subsistence
- Motor cars, motor car accessories and fuel
- Business entertainment
- Business development
- Staff catering and staff parties
Online Training Workshop: The Backbone to the Accounts: Demystifying the Nominal Ledger
By the end of this workshop, participants will be able to:
- Chart of Accounts & Posting Quality
- Explain how the Chart of Accounts underpins financial reporting and management information.
- Apply appropriate numbering conventions and understand why structure and consistency matter.
- Differentiate effectively between expenditure types while maintaining meaningful reporting.
- Produce clear, accurate, and detailed posting narratives that enhance audit trail and reporting quality.
- Expense Management & Disbursements
- Develop and apply clear expense policies, including understanding repayment processes and potential payroll implications.
- Distinguish correctly between disbursements and business expenses.
- Manage bulk disbursements (e.g. Land Registry and HMCTS) efficiently and accurately.
- Determine appropriate processes when no matter reference is available.
- Identify correct records to retain and apply correct posting dates (e.g. statement date vs payment date).
- Purchase Order Systems & Purchase Ledger Control
- Explain the purpose and benefits of purchase order systems in strengthening financial control.
- Set up and manage a purchase ledger effectively.
- Understand how purchase ledger activity impacts the balance sheet.
- Apply best practice to ensure accurate creditor reporting and control.
- Accruals, Prepayments & Year-End Controls
- Explain how accruals and prepayments work and why they are necessary.
- Accurately calculate and post accruals and prepayments.
- Ensure timely release of accruals and reduction of prepayments.
- Perform reconciliations and maintain balance sheet integrity at year end.
- Understand the financial statement impact of incorrect treatment.
- Budgeting, Cash Flow & Financial Awareness
- Set a high-level budget aligned to operational expectations.
- Prepare and interpret a basic cash flow forecast.
- Clearly explain the difference between profit and cash.
- Understand how financial planning supports strategic decision-making.
- Management Reporting
- Identify key reports suitable for inclusion in a monthly management reporting pack.
- Assess the appropriate level of detail for senior management reporting.
- Present financial information in a way that supports effective decision-making.
- Value Added Tax (VAT) Compliance
- Explain the basic principles of VAT and how the VAT system operates.
- Identify different VAT rates and understand their practical impact.
- Recognise valid evidence required to reclaim VAT, including:
- Full VAT invoices
- Valid VAT numbers and how to verify them
- Retailer receipts and acceptable alternatives
- Credit card and procurement card statements
- Assess when invoices are not required and identify risks with pro forma invoices.
- Determine whether invoices addressed to employees are acceptable.
- Apply the reverse charge correctly for services received from non-UK suppliers.
- Calculate how much VAT can be reclaimed, including:
- Identifying blocked input VAT
- Apportioning business and personal use
- Apply correct VAT treatment to specific expense categories, including:
- Disbursements
- Directors’ and employees’ expenses
- Motor vehicles and fuel
- Business entertainment and development
- Staff catering and events
Overall Outcome
Participants will gain the knowledge and practical confidence to:
- Strengthen financial controls
- Improve accuracy and compliance (particularly in relation to VAT)
- Maintain robust balance sheet integrity
- Enhance operational efficiency
- Produce reliable financial information to support informed management decisions
Further Information
Practice notes and training sessions represent the Association of Legal Compliance & Accounts’ view of good practice in a particular area. They are not intended to be the only standard of good practice that firms can follow.
Practice notes and training sessions are not legal advice, and do not necessarily provide a defence to complaints of misconduct or poor service. While we have taken care to ensure that they are accurate, up to date and useful, we will not accept any legal liability in relation to them.
Frequently Asked Questions
All ALCA online training is delivered live, interactive and is recorded. We bridge the gap between ‘face-to-face’ and online training by applying a blended approach. Questions can be posed to trainers throughout the workshops with quizzes/polls being used to engage with attendees.
Workshops can be continuously replayed for 60 days after broadcast.
Benefits?
- Reduced cost
- Can be taken anywhere on any device – no travel time or cost
- Shorter and more efficient than face-to-face
- Live and interactive
- Recorded and can be replayed at your leisure
Depending on your subscription and the length of the workshop, the pricing is as follows:
Our online workshops are delivered via Zoom. You can access the session via your computer, tablet or mobile device.
Details on how to join the online session will be provided the day before the training goes live.
We recommend you run a system test and check your internet speed by clicking <a href=”https://zoom.us/test” target=”_blank” rel=”noopener”>HERE</a>.
If your firm prevents you from using Zoom, please <a href=”mailto:hello@alca.org.uk”>contact us</a>.
There is no requirement to attend live but we advise that you do where you can as this will be the best experience for you. Don’t forget, you can pose questions live to the trainer and join in with the interaction when you attend live. Also, be mindful that you have access to the recording for 30 days, after which, it will no longer be available.
Not at all. We prefer it if candidates do as it makes the training more engaging but it is not mandatory to turn your camera or microphone on during the training session.
If you don’t have a microphone, you can still pose questions using the chat facility.
