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The key question for ",{"text":1544,"type":101,"marks":1545},"accounting automation software",[1546,1549],{"type":213,"attrs":1547},{"href":1548,"uuid":26,"anchor":26,"target":216,"linktype":80},"https://www.spendesk.com/blog/accounting-automation-software/",{"type":188},{"text":1551,"type":101}," is whether it captures the code when the money moves.",{"type":180,"attrs":1553,"content":1554},{"level":316,"textAlign":26},[1555],{"text":1556,"type":101,"marks":1557},"Rule-based automation and machine learning",[1558],{"type":188},{"type":95,"attrs":1560,"content":1562},{"textAlign":26,"key":1561},"p-89",[1563],{"text":1564,"type":101},"Deterministic rules can handle predictable activity. For example, a particular supplier may always post to the same overhead code.",{"type":95,"attrs":1566,"content":1568},{"textAlign":26,"key":1567},"p-90",[1569,1571,1578],{"text":1570,"type":101},"A ",{"text":1572,"type":101,"marks":1573},"2026 arXiv study",[1574,1577],{"type":213,"attrs":1575},{"href":1576,"uuid":26,"anchor":26,"target":216,"linktype":80},"https://arxiv.org/html/2608.18033",{"type":188},{"text":1579,"type":101}," found that a sentence-transformer model needed around 100 client-specific data points to reach an F1 score of 0.9. 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It does, however, make the right choice easier.",{"type":95,"attrs":1739,"content":1741},{"textAlign":26,"key":1740},"p-106",[1742],{"text":1743,"type":101},"Capturing coding information at source also stops many errors from waiting until month-end, when they would otherwise require a reclassification journal.",{"type":95,"attrs":1745,"content":1747},{"textAlign":26,"key":1746},"p-107",[1748],{"text":1749,"type":101},"The result is a close process built around reviewing exceptions rather than repairing routine transactions.",{"type":95,"attrs":1751,"content":1753},{"textAlign":26,"key":1752},"p-108",[1754,1756,1762],{"text":1755,"type":101},"If manual coding is slowing the close, see how Spendesk combines ",{"text":1757,"type":101,"marks":1758},"bookkeeping rules with smart suggestions",[1759,1761],{"type":213,"attrs":1760},{"href":1591,"uuid":26,"anchor":26,"target":216,"linktype":80},{"type":188},{"text":1763,"type":101},", allowing finance teams to review prepared fields instead of entering every code from scratch.",{"type":180,"attrs":1765,"content":1766},{"level":182,"textAlign":26},[1767],{"text":1768,"type":101,"marks":1769},"Frequently asked questions",[1770],{"type":188},{"type":95,"attrs":1772,"content":1774},{"textAlign":26,"key":1773},"p-109",[1775],{"text":1776,"type":101},"These answers cover coding and reporting questions that complement the structures discussed above.",{"type":180,"attrs":1778,"content":1779},{"level":316,"textAlign":26},[1780],{"text":1781,"type":101,"marks":1782},"What is the difference between a GL code and a VAT code?",[1783],{"type":188},{"type":95,"attrs":1785,"content":1787},{"textAlign":26,"key":1786},"p-110",[1788],{"text":1789,"type":101},"A GL code classifies what the transaction represents in the nominal ledger. A VAT code records the transaction’s VAT treatment. A single expense account can therefore contain transactions with different VAT treatments when the underlying supplies and circumstances differ.",{"type":180,"attrs":1791,"content":1792},{"level":316,"textAlign":26},[1793],{"text":1794,"type":101,"marks":1795},"Do small companies need the same coding detail as larger FRS 102 reporters?",[1796],{"type":188},{"type":95,"attrs":1798,"content":1800},{"textAlign":26,"key":1799},"p-111",[1801],{"text":1802,"type":101},"Not necessarily. Small entities applying FRS 102 Section 1A use the same recognition and measurement principles but have reduced presentation and disclosure requirements. Their chart of accounts still needs enough detail to prepare the applicable accounts and disclosures. The appropriate level of detail depends on the entity’s transactions and reporting obligations.",{"type":180,"attrs":1804,"content":1805},{"level":316,"textAlign":26},[1806],{"text":1807,"type":101,"marks":1808},"Do you need a separate GL code for every supplier?",[1809],{"type":188},{"type":95,"attrs":1811,"content":1813},{"textAlign":26,"key":1812},"p-112",[1814],{"text":1815,"type":101},"Usually not. The supplier record identifies who was paid, while the GL code records what was purchased. A separate nominal account is useful only when the supplier’s activity needs distinct management, statutory, or tax reporting.",{"type":180,"attrs":1817,"content":1818},{"level":316,"textAlign":26},[1819],{"text":1820,"type":101,"marks":1821},"How do GL codes connect to Making Tax Digital reporting?",[1822],{"type":188},{"type":95,"attrs":1824,"content":1826},{"textAlign":26,"key":1825},"p-113",[1827,1829,1836],{"text":1828,"type":101},"Under Making Tax Digital for VAT, VAT-registered businesses must keep digital records for each supply made, including the rate of VAT charged, and for each supply received, including the input tax claimed. These requirements are set out in ",{"text":1830,"type":101,"marks":1831},"VAT Notice 700/22",[1832,1835],{"type":213,"attrs":1833},{"href":1834,"uuid":26,"anchor":26,"target":216,"linktype":80},"https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat",{"type":188},{"text":1001,"type":101},{"type":95,"attrs":1838,"content":1840},{"textAlign":26,"key":1839},"p-114",[1841,1843,1847],{"text":1842,"type":101},"Manual re-entry or copy-and-paste may not qualify as a ",{"text":1844,"type":101,"marks":1845},"digital link",[1846],{"type":188},{"text":1848,"type":101}," when the relevant Making Tax Digital rules apply. Confirm the requirement against current HM Revenue & Customs guidance for your accounting setup.",{"type":95,"attrs":1850,"content":1852},{"textAlign":26,"key":1851},"p-115",[1853],{"text":1854,"type":101},"For sole traders and landlords within scope, Making Tax Digital for Income Tax uses the same Self Assessment categories in quarterly updates. Whether and when it applies depends on qualifying income and the relevant mandation timetable, so confirm your position against current HM Revenue & Customs guidance.",{"type":180,"attrs":1856,"content":1857},{"level":316,"textAlign":26},[1858],{"text":1859,"type":101,"marks":1860},"What is a GL code dictionary?",[1861],{"type":188},{"type":95,"attrs":1863,"content":1865},{"textAlign":26,"key":1864},"p-116",[1866],{"text":1867,"type":101},"A GL code dictionary is a document that lists every active code, including:",{"type":190,"content":1869},[1870,1878,1886,1894,1902,1910],{"type":193,"content":1871},[1872],{"type":95,"attrs":1873,"content":1875},{"textAlign":26,"key":1874},"p-117",[1876],{"text":1877,"type":101},"What belongs in the code",{"type":193,"content":1879},[1880],{"type":95,"attrs":1881,"content":1883},{"textAlign":26,"key":1882},"p-118",[1884],{"text":1885,"type":101},"What does not belong in the code",{"type":193,"content":1887},[1888],{"type":95,"attrs":1889,"content":1891},{"textAlign":26,"key":1890},"p-119",[1892],{"text":1893,"type":101},"The default VAT treatment",{"type":193,"content":1895},[1896],{"type":95,"attrs":1897,"content":1899},{"textAlign":26,"key":1898},"p-120",[1900],{"text":1901,"type":101},"The code owner",{"type":193,"content":1903},[1904],{"type":95,"attrs":1905,"content":1907},{"textAlign":26,"key":1906},"p-121",[1908],{"text":1909,"type":101},"The approval process for changes",{"type":193,"content":1911},[1912],{"type":95,"attrs":1913,"content":1915},{"textAlign":26,"key":1914},"p-122",[1916],{"text":1917,"type":101},"The date and reason a code was added, changed, or retired",{"type":95,"attrs":1919,"content":1921},{"textAlign":26,"key":1920},"p-123",[1922],{"text":1923,"type":101},"No standard defines the contents of a GL code dictionary. Teams that version the document can maintain a clear record of why a code was introduced or 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