Business Setup

[Matthew Vanecek]

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On Mon, 2002-12-16 at 10:24, Lane P. Lester wrote:
> I've been using GnuCash since April, and I've just now realized that my
> account setup is not what it should be. Everything's fine with my
> personal accounts; my business accounts are the problem.
>=20
> I don't necessarily want all the accounts to make an accountant happy; I
> just want what's needed for an accurate picture of what's going on.
>=20
> The main source of income for my business is publishing a single book.
> The major expense is for printing, and most of the sales are to
> bookstores. I would like to have the value of the inventory show up
> somewhere, but it doesn't.
>=20
> Can you point me to some information for setting up the appropriate
> accounts?

Your local Barnes-n-Nobles ought to have some applicable accounting
texts.  I find it useful, myself, to try and understand the theory
behind what I do in Gnucash.  Gnucash should really be viewed as a
front-end for sound accounting practice (although it doesn't always
enforce them...)


Generally, you would want a finished goods asset account.  As books are
printed, you transfer their value to Finished Goods (debit FG, credit
Print Expense), and as they are sold, you deplete Finished Goods.  The
value of a book is probably equal to the cost of printing/binding
(although you probably have it done in batches, I'd imagine).  Cost of
Sales, etc., would be figured as the expenses you incur marketing the
book, and wouldn't affect Finished Goods, of course...

Good luck.  Relly, looking at the library, or at your bookstore, is
probably the best, lowest-cost alternative.  You could always spend the
money on a CPA.  There is also stuff on the Web (I don't have any links
bookmarked-try Google).  Understanding the principles will go a long way
to making Gnucash a much more effective tool.

--=20
Matthew Vanecek
perl -e 'print $i=3Dpack(c5,(41*2),sqrt(7056),(unpack(c,H)-2),oct(115),10);'
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*****
For 93 million miles, there is nothing between the sun and my shadow except=
 me.
I'm always getting in the way of something...

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