Gnucash and double entry accounting. GNU Cash for Business users Howto Guide. A major problem remains the lack of documentation on the business features, so I found myself stumbling around and spending a lot of time searching for information on the simplest things. Getting the Accounts Receivable and Payable configured wrong did not exactly help either... An appeal to Derek Atkins, the designer of the business extensions, resulted in some good comments which were worked into this guide. The purpose of this guide is to document the configuration and execution of the common business actions. I assume that you are comfortable with small business accounting and just want to know how to get going. You can use this file: chart-of-accounts to get you started. If you live in Canada, then that will do to get you going. Note that there are a few important relationships that must be configured properly. If those types are wrong, then the bill and invoice payment dialogues will not work correctly.
Add your Business Name, Address and GST number: Create an Invoice In other ways: GnuCash Tutorial and Concepts Guide. GnuCash is the personal finance software package made for you.
It is versatile enough to keep track of all your financial information, from the simple to the very complex. It is one of the few financial software packages that supports global currencies, and it is the only open-source program of its kind. Best of all, GnuCash is easy to learn and use! So, what can GnuCash do for you? It can keep track of your personal finances in as much detail as you prefer. While GnuCash is well suited for personal finances, it is also powerful enough for business use.
GnuCash has been designed from the ground up to be easy to use. Easy to Use Menus: GnuCash menus conform with the GNOME Human Interface Guidelines. GnuCash has a number of investment features. Stock/Mutual Fund Portfolios: Track stocks individually (one per account) or in a portfolio of accounts (a group of accounts that can be displayed together). GnuCash has many features to support the needs of the business accounting community. Note. Gnucash and double entry accounting : Example business, RocketScience LLC. PreviousNextTable of Contents 4.
Example business, RocketScience LLC 4.1 Incurring liability: Starting the business Let's start a one person business, RocketScience LLC. Here's the gnucash screen for the moment the business springs into life. Note: I have grouped accounts of the same type into their own tree. (Note added after the talk: an accountant in the audience said that the owner's capital should be an "equity" account. The business needs some capital to buy things, so that you can start work. Remember that money only moves around, it didn't just appear. Here's the same entry as seen in the matching liabilities.capital account. 4.2 Black Ink and Red Ink If you read in the newspapers that a company is running a lot of red ink, it means they have a too many liabilities and they're in financial trouble.
In the transaction above, a matching pair of entries creates an account with a black balance (the check account) and another account (the liability account) with an equal red balance. A Sample Chart of Accounts.