Small biz: personal vs. company accounts hierarchy?

[Walt Pennington]

Hi Chris,

An easier way to consider how to handle this, is to consider that the
two entities do not use the same computer for their accounting.  

For example, I use GnuCash for my business accounting, and also for my
personal accounting.  My business gnucash accounts are at my office, and
my personal gnucash accounts are on my home computer.  When I write a
check to myself from my office the entry is:

Salary                 $10    		Expense
    Bus. Checking	    $10 	Asset

On my home computer, which is running GnuCash, the entry is:

Personal Checking      $10		Asset
    Income                   $10 	Income


If you look at accounting for your personal and business accounts on
different computers, it may be easier to consider how to account for
those separate transactions.  

Walt


On Thu, 2004-03-25 at 14:05, Chris Shenton wrote:
> I'm pretty new to gnucash but would really like to use it for my
> one-person company which operates as an LLC.
> 
> I can create personal accounts for banks, credit cards, expenses, etc.
> But I don't know how to separate this from the LLC in- and out-flow
> 
> The LLC invoices a client, the client cuts a check to the LLC, it gets
> deposited in the LLC's checking account.  The LLC then writes a check
> to me (the human) for hours worked; it also writes checks for
> business-related expenses including a credit card for the LLC.
> 
> So how do I set up accounts for me (the human) versus the LLC?
> 
> I've read the Concepts Guide and it looks like I should enter LLC
> invoices submitted and paid via an Account Receivable account.  I
> presume I record LLC expenses (including paying the human) in an
> Accounts Payable account.  How 'bout the LLC's checking account (which
> is where checks from clients get deposited) and the LLC's credit card
> account? In various reports and summaries, how do I keep LLC assets,
> liabilities and such distinct from my (human) accounts?
> 
> I'm not clueful enough about accounting principals, practices and
> vocabulary yet, sorry.  Thanks for your help.
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at lists.gnucash.org
> http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-user
-- 
Pennington Firm
402 West Broadway
4th Floor
San Diego, CA 92101-3554
619-696-5050
888-480-5050
PennFirm.com