Project Report

[Mike or Penny Novack]

Vasyĺ V. Vercynśkyj wrote:

> Good day!
>
> Let's imagine the setup:
>
> One day I decided to go into new business and I chosen… pillow making. 
> I supposed to produce pillows stuffed with feathers and foam-rubber. 
> Thus I have two business projects to realize:  Feathers Pillows 
> (Project codename "FP") and Foam-Rubber Pillows (Project codename "FRP").
>
>
> - Expenses € 0
> -- My business
> --- Material purchase

Stop right there. The place you need to begin is not how to use GnuCash 
but how to do "accounting for a business" (no matter if this or any 
other software is used).

When we are doing "personal" books we can be pretty careless about what 
we call an expense. But for a business, not. The amount you expend for 
materials is immediately an asset (supplies) and only becomes expensed 
as this material is used for pillow that are sold (before selling, the 
"materials" inventory becomes "goods" inventory as converted into pillows)

I suggest that if you are serious about doing business books via gnucash 
--- or any other way, even old fashioned pen and ink on paper, I mean 
doing it yourself rather than hiring somebody, then you have to learn 
the basics of the accounting involved. A program like gnucash can only 
be automating parts of the process for you, can't teach you how.

Michael D Novack