Combined Personal plus Businesses in same file

[Dave]

On Wed, Apr 9, 2008 at 8:07 AM, Mike or Penny Novack <
stepbystepfarm at mtdata.com> wrote:

>
>  I want to keep all transactions in the same file.
> > > >
> > > Thank you. My past experience indicates that the
> > "one-taxable-entity-per-file" model will not work for me. My entities
> > are
> > separate taxable entities (corporations)
> >
> >  Could you perhaps better define what you mean by "in one file".


I suspect you may be over-thinking my issue. By "in one file" I was implying
the usual computer (Windows/Linux) definition of a file. I am not talking
about a set of files in a directory.


> Are you saying that these (other) applications ...


In MoneyDance, there is a feature called tags. In MS Money there is a
feature called classifications. I believe they both do the same thing
(although I have yet to personally try the feature in MoneyDance). You could
think of these as a level of organization above the chart of accounts.

Assume you have a small set (four or five) of (legally/taxably separate)
entities that each use an identical chart of accounts. Give each entity a
short name and call that name a "tag."

In this situation, there is nothing inherently difficult about letting the
separate entities share one chart of accounts (they are all identical
anyway) and separating the entities at a higher level by tagging each
transaction. Any report can simply filter the transactions by tag and the
result is exactly the same as if the entity associated with that tag were
the only entity existing in that data.

The difference is one of convenience. All the transactions from all the
entities (in this small set) are available (i.e., new txns can be entered,
existing can be reviewed or modified) simultaneously. There is no need to
close a file (i.e., remove a set of transactions from computer memory) and
open another file to continue working with various entities in this small
set.



>
>    If ALL you are asking is "can GnuCash keep as many sets of books as I
> need in one directory


No. I want all the entities in one file so that the transactions of all
entities of interest to me are available without closing one file and
opening another. I edit/work on all four or five entities together -- but
they are separate taxable entities.


>
>
> I think multiple hierarchies (as was explained to me by Derek) sounds
close to this. However, since I haven't tried it before and since it is not
recommended generally, I want to understand it in more detail. I would
appreciate it if anyone will discuss with me some of the pros and cons of
using multiple hierarchies in one file, in the context I have outlined
above. Thanks.

Dave