Sharing customers between GnuCash files
Macho Philipovich
macho at resist.ca
Thu Jan 21 12:28:20 EST 2016
Thanks for the response Derek.
On 2016-01-21 10:57 AM, Derek Atkins wrote:
This doesn't sound like a trust account; it sounds like an ESCROW
account. I suspect it's not its own taxable entity, but is, rather,
taxed as part of the business. The advice given before is probably
wrong. I think the escrow account SHOULD be part of your business file
and NOT tracked separately.
But honestly, I'm not sure why you need this extra account? Is there
some canadian legal requirement to hold the funds in a separate account?
Or are you just trying to figure out how to handle pre-payment by your
customers?
My understanding of escrow accounts is that they're administered by an
entity who is a third-party to the transactions taking place.
In many (most?) jurisdictions, lawyers are legally required to keep a
separate account for money received from their clients for which they
have not yet invoiced the client. For example, the Minnesota State Bar
Association has published one guide for keeping such client trust
accounts using GnuCash, and tells lawyers to "Keep your trust accounts
separate from your business accounts if using a general-purpose
accounting program […] In GnuCash, use a separate file.":
[1]http://www.mnbar.org/docs/default-source/practicelaw-public/keeping-
client-trust-accounts-with-gnucash-2-2-4.pdf
Other contributors to this list seem to be keeping the information in
the same file:
[2]https://lists.gnucash.org/pipermail/gnucash-user/2011-March/039321.h
tml
Whether this passes muster with the local bar association probably
depends upon their specific bookkeeping rules. My vague sense is that
here in Quebec, so long as you can generate separate reports for the
accounts to submit to the bar association, this should be fine (this is
not to be construed as legal advice to anyone else).
You are correct that this is not its own taxable entity: the money in
that account does not even belong to me.
Essentially, it does seem to me as though combining them in the same
file makes the most sense to me, but other participants in this list
(and the Minnesota Bar) seem to strongly disagree. If I take that
approach, I run into the problem of having to duplicate a system of
customers, files, and invoices, which seems silly.
Any insights would be appreciated.
Thanks again,
Macho
References
1. http://www.mnbar.org/docs/default-source/practicelaw-public/keeping-client-trust-accounts-with-gnucash-2-2-4.pdf
2. https://lists.gnucash.org/pipermail/gnucash-user/2011-March/039321.html
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