Book Image

Gnucash 2.4 Small Business Accounting: Beginner's Guide

4 (1)
Book Image

Gnucash 2.4 Small Business Accounting: Beginner's Guide

4 (1)

Overview of this book

Attention, small business owners! Stop tax-day stress. Stop procrastinating with a shoebox full of receipts. Stop reinventing the wheel with a spreadsheet. Stop making decisions simply on a hunch. Stop wasting money on software that is overkill. Start by downloading GnuCash and getting your accounts in order. Designed to be easy to use, yet powerful and flexible, GnuCash allows you to track bank accounts, income, and expenses. As quick and intuitive to use as a checkbook register, it is based on professional accounting principles to ensure balanced books and accurate reports. You can do it and Gnucash 2.4 Small Business Accounting Beginner's Guide will help you get up and running with maintaining your accounts. Gnucash 2.4 Small Business Accounting Beginner's Guide speaks business language, not accountant-speak, because it is written by a former small business owner. It guides you to use GnuCash from scratch with step-by-step tutorials without jargon, pointing out the gotchas to avoid with lots of tips. It will teach you to work on routine business transactions while migrating transaction data from other applications gradually. You will be able to keep on top of transactions and run reports after reading just three chapters! Beyond Chapter 3, it is up to you how far you want to go. Reconcile with your bank and credit card statements. Charge and pay sales tax. Do invoicing. Track payments due. Set up reminders for bills. Avoid stress at tax time. Print checks. Capture expenses using your mobile phone. Gnucash 2.4 Small Business Accounting Beginner's Guide gives you the power. Know your numbers. Make decisions with confidence. Drive your business to its full potential.
Table of Contents (20 chapters)
Gnucash 2.4 Small Business Accounting
Credits
About the Author
About the Reviewers
www.PacktPub.com
Preface
Index

Strengths and limitations of GnuCash


By now, you know that GnuCash can do business accounting, however, you would like to know how far it can go. For example, you would like to know what type of accounting GnuCash is most suitable for and what kind of accounting it cannot handle.

Business as well as personal accounting

You can use GnuCash for your personal as well as business accounting in the following different ways:

  1. Work on only your business accounts.

  2. Work on only your personal accounts.

  3. Combine your personal accounts and business accounts into one single account. For example, if you have a simple rental type of business, you can keep your rental income and expenses in separate accounts within your personal accounts.

  4. Maintain your personal accounts as well as your business accounts in separate files. This is because GnuCash saves one account with all of the related transactions in one file. You can open your personal accounts file, enter transactions, and save it. Then you can open your business accounts file, enter transactions...and so on.

Note

This is a description of the capabilities of the software. You should check with your accountant and tax consultant regarding the best course of action for your specific financial and tax situation.

However, please note that this book is focused entirely on business accounting. Personal accounting is not within the scope of this book.

Single user

GnuCash is a single user software. Oh, you and your business partner both need access? Your associate will be entering transactions and you must be able to view the reports? You want to know whether there is a way for more than one person to access GnuCash? Yes, there is. As long as you are willing to live with the limitation that only one person can use it at a time.

Sharing a GnuCash accounts file

Here is how two people can share a single GnuCash accounts file. Look for a common folder that both users have access to. This can be a folder on one of the users' PC for which the other user is provided shared access. Or, as shown in the diagram below, it can be a folder on a network file server that both users have access to.

When User A accesses the file, GnuCash will lock that file. If User B tries to open this same file, GnuCash will pop a warning as shown in the following screenshot:

On seeing this message, User B should quit. If User B goes ahead and chooses to Open Anyway, then there is risk of data corruption and data loss. However, this message can also appear if the last time you used GnuCash it closed abnormally. This abnormal closing can occur due to a number of reasons including power failure, application, operating system crash, or other such problems. If that is the case, you must select Open Anyway. In short, when you see this message:

  • If you are the only person using it, select Open Anyway.

  • If you are sharing it with others, check whether anyone else is using it first.

Accounting features not supported by GnuCash

GnuCash is suitable for small business accounting. Some small businesses need Payroll, Inventory, or Point of Sale (POS) features. However, GnuCash doesn't have integrated payroll, inventory, or POS modules.

Tip

Payroll

Even though GnuCash doesn't have an integrated payroll module, you can create necessary accounts in GnuCash and enter payroll expenses, as needed. In order to work around this limitation, you may choose to use a payroll service provider or a spreadsheet for calculating your payroll.

Business functions other than accounting

Quotations, purchase orders, and other business functions do not result in an accounting transaction. GnuCash is solely devoted to accounting. It doesn't support these other business functions.